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I have a simple carousel with multiple slides on our home page, and I want to use Google Analytics to track how effective each slide is.

What is the correct way to do this in GA?

I could use:

Event Tracking

Event Tracking is one option. User clicks would trigger the event and track which image the user interacted with.

Campaign Tracking

Campaign Tracking is another option whereby I could define the parameters of the slide and then qualify the pageview on the target page as being from the carousel.

For this use case, what is the "correct" tool to use? I'd like to make sure that I'm doing this the same way everyone else does so if we bring in additional resources or contract with a vendor our GA implementation doesn't come out of left field.

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Event Tracking.

It is easiest and allows you to also then create goals from this which will make your future reporting much easier to evaluate the success of the different images.

Use the asynchronous snippet (the new default Google Analytics snippet and see here https://developers.google.com/analytics/devguides/collection/gajs/eventTrackerGuide for full details on setting up the event.

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