In my opinion the best free statistics programme for blogs and websites is Stat Counter.
Advantages of Stat Counter
- Updates in real Time
- Has increased log size to 500
- You can track visitor paths. – this is useful for seeing how a visitor navigates through your site.
- Very easy to use / invisible
The next best choice would be AWSTATS, but if it is not included on your hosting package, it is not so easy to install.
Of course, the only problem with statistics programs is that they can be a good way to waste time and reduce productivity.
Having said that they can also be very good for increasing traffic. Basically I look at the popular keywords for entering the site and work on developing them. E.g. if people come through UK Housing Market, I work on London housing market e.t.c.