Analytics is an area of internet marketing that can become quickly overwhelming. Here is some quick advice from the Google Business Channel on some key metrics that can help identify “adwords problem areas”:
Always remember to attack analytics in smaller, workable pieces. Google Analytics provides a lot more data than most advertisers will ever need. While analytics is a critical component to web marketing, if left unchecked, it can be huge time-suck.
Also, don’t obsess too much about time on site, bounce rates, pages per visit, etc. While you should set goals for each of these metrics, there is no magic pill for getting better results. Testing is the only reliable way to increase campaign performance.
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Google Analytics is by far the best online marketing tool you can use, and it is free to install.