Unit 01 (How Analytics Works) introduces how web analytics tools capture user interactions, process them into metrics, and turn those into reports for business decisions, using Google Analytics as the reference model. It covers data collection via tags and cookies, the shift to GA4’s event model, and the pathway from a page request to dashboards and KPIs.

What this unit covers

• Data capture pipeline: A tracking tag loads on each page, sets or reads identifiers, logs interactions, and sends hits/events from the browser or server to analytics endpoints for processing into sessions, users, and events.

• Identifiers and cookies: Client IDs and session information distinguish new vs returning users and stitch pageviews into sessions; GA4 relies on first‑party identifiers and event parameters, with options for server‑side collection and modeled data when cookies are limited.

• Event-based model (GA4): Every interaction is an event with parameters, replacing UA’s pageview/session-centric schema; automatically collected events, enhanced measurement, and custom events describe behavior across web and app.

• Processing and reporting: Collected data is aggregated into dimensions/metrics and exposed in reports for traffic, engagement, conversions, and monetization, enabling KPI calculation like revenue per session.

• Measurement setup essentials: Use Google Tag Manager, link Ads and Search Console, configure filters, and implement goals/conversions and funnels to ensure accurate, decision‑ready data.

Learning objectives

• Describe the end‑to‑end flow from page load to report: tag fire, data payload, processing, and reporting.

• Explain cookies/identifiers, sessions, and events, and how GA4 measures engagement and conversions without relying solely on third‑party cookies.

• Configure core measurement: goals/conversions, funnels, property links, and filters to clean data and attribute outcomes.

• Compute foundational KPIs (conversion rate, AOV, revenue per session) and explain their use in channel efficiency and profitability.

Why it matters

• Reliable analytics underpins channel decisions, testing, and budgeting; clean tagging and correct goals make attribution and optimization credible.

• GA4’s event model and modeling help sustain insight despite privacy limits, enabling cross‑platform measurement and durable reporting.

In-class activities

• Goals and funnel walk‑through: Map destination, duration, pages/session, and event goals; build a simple checkout funnel and compute step‑through rates.

• KPI calculation drill: From sample tables, calculate conversion rate and revenue per session; discuss implications for CPC ceilings and margin.

• Segmentation lab: Compare device, browser, new vs return, time, and channel cohorts to show how insights change when traffic isn’t aggregated.

Expected outcomes

• Set up a minimal but robust analytics implementation (tag/container, links, filters, conversions).

• Read and explain core reports, compute KPIs, and propose one optimization based on segmented performance.

• Articulate how GA4’s event model captures behavior and supports privacy‑aware measurement.