Bill Brelsford makes a good point today in Small Business Building Blocks: Do You Need More Traffic Or Conversions? It isn't necessarily as simple as just generating more traffic. You need targeted traffic because ultimately the objective is conversions, not just traffic.
The underlying importance of targeting is the point of my fishbowl post in Startups, Planning, and Stories a few days ago. I also remember when we learned why simple prize offerings to generate traffic at www.paloalto.com did us no good; we wanted targeted traffic, not just any traffic.
Nice post Bill.