With version 4.3 (or later) we have considerably improved PRTG's versatility for network traffic monitoring by adding a Packet Sniffer and a Netflow collector to the SNMP monitoring featured by previous versions.
SNMP (Simple Network Management Protocol) is the basic means of gathering bandwidth and network usage data. Monitoring the bandwidth usage of routers and switches port-by-port is the most common use of SNMP as well as monitoring device readings like memory, CPU load etc.
Using the Packet Sniffer PRTG can inspect all network data packets passing the local machine's network card. You can either only monitor the traffic of the machine running PRTG or you must make sure that all network traffic you want to analyze passes it (e.g. by connecting it to the "monitoring" port of a switch).
Netflow can be used with most Cisco routers to measure bandwidth usage. Although being the most complex type it is also the most powerful for high traffic networks.