Make sure you look over this documentation page if you decide to use Google Analytics on a site with frames. The traffic sources for one of our niche sites weren’t showing up properly (it listed search engine traffic as referral traffic) and I couldn’t figure out why. It turns out you need to put the Analytics code in the <head> section of the frameset page in addition to the right before the </body> of the frame pages.
One other weird thing (makes sense but weird to see at first) is the way it shows page views. Instead of a single page impression, it records an impression for the frameset page and each of the frame pages. So when someone visits a page with two child frame pages you’ll see three impressions in your reports.
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God, I can’t believe there are still people using frames out there! They are so SEO unfriendly!
@Ryan
Yes, frames are bad for SEO. That niche site contains a web application and essentially zero content. So there isn’t much for the search engines to do anyway.