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Data & Analytics
2025-12-15 10 min

Google Analytics 4: What SMEs Need to Know in 2026

TL;DR

Google Analytics 4 has been the standard since July 2023 — Universal Analytics is switched off. GA4 thinks in events rather than page views and offers significantly more powerful analysis. This guide shows SMEs how to set up GA4 correctly in 3 hours and monitor the 10 most important KPIs.

GA4 vs. Universal Analytics: What Has Changed?

Universal Analytics (UA) was page-view-based: every click on a new URL counted as a session. GA4 thinks in events: every interaction — scroll, click, video play, form submission — is an event. That sounds more complex, but it is more powerful: you can now see what users do on your site, not just which pages they visit.

FeatureUniversal Analytics (old)Google Analytics 4 (new)
Data modelSessions & page viewsEvents & parameters
Cross-deviceLimited✅ User ID-based
PrivacyCookie-dependentCookieless-capable (modelling)
ReportsPredefinedCustomisable (Explorations)
PredictionsNot available✅ AI-based forecasts
Real-timeLimited✅ Full
Status❌ Switched off (July 2023)✅ Current

Setting Up GA4 Correctly: The 5 Most Important Steps

Step 1: Create a property and set up a data stream

Create a new GA4 property in Google Analytics. Add a web data stream for your domain. Copy the Measurement ID (G-XXXXXXXXXX) — you will need it for the integration.

Step 2: Use Google Tag Manager (recommended)

Install Google Tag Manager (GTM) on your website. In GTM, create a GA4 configuration tag with your Measurement ID. GTM allows you to make all further tracking adjustments without code changes.

Direct GA4 snippet vs. GTM: for SMEs we always recommend GTM. It enables future adjustments without a developer and is a prerequisite for professional event tracking.

Step 3: Configure important events

GA4 tracks automatically: page views, scroll depth (90%), outbound clicks, file downloads and video engagement. These events must be set up manually:

  • Form submissions (contact form, newsletter sign-up)
  • Phone clicks (tel: links)
  • Button clicks on CTAs
  • E-commerce events (if applicable): add_to_cart, purchase
  • Search terms on your website

Step 4: Define conversions

Mark your most important events as conversions in GA4. Typical conversions for SMEs: contact form submitted, phone clicked, appointment booked, newsletter signed up.

Step 5: Link Google Search Console

Connect GA4 to Google Search Console. This lets you see which search terms bring users to your website — and which pages perform well in search results.

The 10 Most Important GA4 KPIs for SMEs

KPIWhat It MeasuresTarget Value (Benchmark)
Engagement RateShare of active sessions (>10 sec or conversion)> 50%
Avg. Engagement TimeAverage active time per session> 1 minute
Conversion RateShare of sessions with a conversion2–5% (B2B)
New Users %Share of first-time visitors50–70%
Organic Traffic %Share of SEO traffic> 40% (target)
Top Landing PagesEntry pages with highest trafficReview regularly
Bounce RateSessions without engagement< 50%
Device SplitDesktop vs. Mobile vs. TabletCheck if Mobile > 50%
Conversion by ChannelWhich channel drives conversions?Evaluate channel ROI
User RetentionReturning usersGrowth over time

GA4 and GDPR: What SMEs Must Bear in Mind

By default, GA4 transfers data to the USA — which is problematic under GDPR. The following measures are mandatory:

  • Cookie consent banner with opt-in for analytics (not opt-out!)
  • IP anonymisation enabled (active by default in GA4)
  • Privacy policy updated with a GA4 notice
  • Data retention limited to 14 months (setting in GA4)
  • Google Signals disabled (if no consent has been given)

Alternative for maximum GDPR compliance: Matomo (self-hosted) or Plausible Analytics (EU servers). Both offer similar features without US data transfer.

Our Conclusion

GA4 is more powerful than Universal Analytics — but it requires more initial configuration. Invest 3–4 hours in a correct setup: the data quality you gain is the foundation for all data-driven decisions. Anyone who ignores GA4 is making marketing decisions in the dark.

Last updated: 2026-02-08

FAQ

Frequently asked questions

Is Google Analytics 4 free?

Yes, GA4 is free. There is a paid version (Google Analytics 360) for enterprise companies with very high data volumes, but for SMEs the free version is entirely sufficient.

How long does GA4 store data?

By default, 2 months for event data, configurable up to 14 months. For Explorations (custom reports) you can analyse up to 14 months of data. For longer histories we recommend a BigQuery export.

Can I use GA4 without a cookie banner?

No — in Germany and the EU, an opt-in cookie banner for analytics tools is mandatory. Without consent, no tracking data may be collected. Alternatives without a cookie requirement: Plausible Analytics or Matomo with cookieless tracking.

What is the difference between sessions and engaged sessions in GA4?

A session is any visit to your website. An engaged session is a visit in which the user was actively engaged for at least 10 seconds, triggered a conversion, or visited 2 or more pages. The engagement rate shows the share of engaged sessions.

How do I connect GA4 to Google Ads?

In GA4 under Admin → Google Ads Links. After linking, you can use GA4 conversions as goals in Google Ads and import GA4 audiences for remarketing.

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