Tuesday, April 18, 2006

Why Google Analytics is good for the Internet Marketing Industry

First they gave us a good search engine. Then they gave us two gigabytes of free server space for email. Now they have given us a high quality web analytics system, for free. Let me just repeat that. They have given us a web analytics system FOR FREE. So what’s this system like? What are its features and how do I see it affecting the web analytics marketplace? This article explains all.

The Web Analytics Marketplace
For a long time now the market has been split into the companies that could afford good tracking at the enterprise level, where the average yearly fee is about $40,000, and those that could only afford around $500-$5000 per year. I don’t see the companies marketing to the enterprises being affected too much.

Enterprise level companies have so many different needs, such as security of their information and high level support, that Google's offer, while probably tempting, will not be a viable solution. Google have slow support and I don’t see that being any different for their analytics solution. In fact I think Google will most likely rely on outside agencies to support the product. I also can’t see the big companies (especially the big publishers and advertising firms) happily handing over all their data to a company that either is or most likely will be their competition.

The companies who really benefit are the ones that either use 3rd party tracking and pay a comparatively small fee per year or don’t currently use analytics at all. The vendors currently serving the SME sector had better get into the enterprise market. If they don’t they will be out of business within a year because the features of the Google system are as good as some enterprise products I’ve worked with. I’m not usually one to predict impending doom, but I would imagine that the web analytics vendor space could be down to as little as 30 companies from about 120 within the year. This is simply because there is very little need to use any paid tool at the lower end of the market when there is a fully featured one available for free."   continued ...   (Via Usability News)


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