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This plugin is used to improve the readability and usability of Google Analytics reports for your Moodle site. By default, page view hits are recorded with the Page (URL) dimension. Custom dimensions are additional values associated with the page view which can be used to better organize reporting.

Using the course shortname dimension, for instance, lets you identify every page view associated with a particular course, even though the page URL might be for an activity or resource mod. Otherwise, you would have to reference the particular mod's id value back to its coursemod id, and then back to the course id. The deeper you go, or the more plugins you use in a course, the more difficult it becomes.

Besides using custom dimensions for organizing reports, they are good for filtering reports too. Separating page view hits based on the user role is an example of this. Moodle users can have various roles depending on the context, i.e. in which course they're taking some action, so user role becomes a hit-level scope rather than a session-level scope. Google Analytics (user) segmenting doesn't work too well for this. But with a user role custom dimension you can filter (include/exclude) based on user role, or use it as a drill-down dimension in the report.