Linus Gregoriadis Research Director Econsultancy.

com
Email: linus.gregoriadis@econsultancy.com Website: http://econsultancy.com

Online Measurement and Strategy Report 2009

in association with Lynchpin
http://econsultancy.com/reports/onlinemeasurement-and-strategy-report

Overview
Methodology Findings
Information requirements Web analytics tools

Use of Google Analytics

Resourcing and budget Online measurement strategy Barriers to success

Questions

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Methodology
Online survey in April and May 2009
Second annual online measurement report

Over 800 respondents, including

405 client-side organisations

310 agency / supplier-side respondents

Majority of respondents UK based

Biggest sectors (publishing, retail, FS, travel)

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Type of data analysed

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Type of data analysed

Need for data that helps companies improve efficiency acquisition / retention
80%
70% 70% 63% 60% 50% 40% 30% 20% 58% 53% 52% 48% 41% 40%

10%
0% Interaction Customer CRM / Customer Competitor between survey data customer engagement information different profiling data online (e.g. lifetime channels value) Interaction between online and offline Third party Reputation / market buzz / social research media metrics

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Change in types of data analysed

2x as many companies looking at reputation monitoring / social media metrics

Growth (since 2008)

Interaction between different channels

Customer survey data CRM / Customer profiling Customer engagement data Competitor information Interaction between online and offline Third party market research Reputation / buzz metrics

17%
1% 17% 9% -1% 11% -7% 19%

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Which data requirements are business priorities?

100% 90% 80% 70% 60% 50% 40% 30% 59% 57% 27% 31% 40% 42% 44% 41% 48% 42% 42% 48% 14% 12% 12% 15% 15% 22% 23% 30% 42% 30% 20%

20% 10%
0%

43%

41%

50% 37% 29% 28% 15%

High priority

Medium priority

Low priority

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Causes of conflicting data

Confusion around definition of different types of metrics Erosion of transparency and trust
Number of page views does differ between the apps. Clicks on search engines to page views from search engines. Google analytics, our primary tracking tool often shows different traffic figures than Google reporting. This seems typical of Urchin. I imagine the results are better than the original urchin tracking technology but I do wonder how much Google has modified it since disparities continue.

Comscore vs. Nielsen vs. Hitwise vs. ABCe.

External affiliate, banner and paid search reports conflict with our web analytics reporting, due to differences in attribution. However, attempting to replicate this attribution using different data sets calculated in the same way, also yields conflicting views of the same channel. Frustrating.

Different data systems often provide conflicting data and constantly need to be verified and benchmarked.

Web analytics tools

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| Course Title

Use of Google Analytics

2009 results Change since 2008

We use Google Analytics exclusively

23%

+9%

We use Google Analytics but not exclusively

57%

+5%

We do not use Google Analytics

20%

-14%

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Main analytics tool used (other than GA)

42% 6%

19%

6%

7%
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Which do you use more frequently?

17% 33%

51%

Google Analytics

Other web analytics provider

Same level of usage

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Last Google / main analytics system log-in

Within the last 24h Within the last week

Companies exclusively using Google Analytics

55%

30%

Companies not exclusively using Google Analytics

37%

30%

Those not using Google Analytics (log-in into main analytics system)

56%

28%

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How often do you change something as a result of an insight from Google / main analytics system?
100% 7% 90% 80% 70% 60% 50% 40% 59% 30% 20% 10% 7% 0% Companies exclusively using GA Never Companies not exclusively using GA Occasionally Frequently Very frequently 11% 5% Companies not using GA 49% 58% 27% 26% 31%

4%
15%

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Do you think Google Analytics has been set up properly?

Companies exclusively using GA Companies not exclusively using GA

13%

23%

16%

15%
71%

61%

Yes

No

Don't know

Yes

No

Don't know

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Reasons for not using Google Analytics

35% 31% 30% 28%

25%

20%

18%

15% 11% 10% 10%

5% 2% 0% It isn't sophisticated enough for our requirements We are happy with We haven't got existing web round to trying it analytics vendor We don't want Google to have this data We can't get it to work properly Other

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Resourcing and budget

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| Course Title

Number of dedicated web analysts

50% 46% 45% 40% 35% 32% 30% 26% 25% 20% 15% 15% 10% 5% 0% 0 1 2 2009 3 2008 4 5 More than 5 8% 5% 6% 4% 2% 2% 2% 1% 6% 46%

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Total analytics spend

35% 32% 30% 31%

25%

20%

19%

18%

15% 11% 10% 10% 8% 11% 10% 12% 10%

8%
6% 5%

5%

4%

5%

0% 0-5,000 5K-10K 10K-25K 25K-50K 2009 50K-100K 2008 100K-200K 200K plus Don't know

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Split of analytics expenditure

2009 results Growth (since 2008) Internal staff 42% +6%

Technology

38%

-7%

Consulting/services

18%

0%

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Who owns the budget for analytics within your organisation?

35% 32% 30% 26% 25%

20%

15%

13%

12%

10%

6%
5% 1% 0% 1%

5%

4%

1%

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Online measurement strategy

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| Course Title

Do your web analytics drive actionable recommendations?

70% 60% 55% 50% 58%

40%

30%

27%

26%

20%

18%

16%

10% 1% 0% Yes - definitely Yes - sometimes 2009 2008 No - not really Never 0%

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Areas responsible for analysing analytics data

Marketing 89%

Executive/Management
Sales Operations Finance
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58%
31% 29% 11%

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Barriers to success

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Barriers to effective measurement strategy

Lack of budget/resources 45% Lack of strategy 31% Difficulty reconciling data 17% IT blockages 17%

Siloed organisation
Lack of understanding Too much data

29%
25% 18%

Lack of trust in analytics 16%

Finding staff Poor technology 12% 9%

Lack of senior buy-in

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18%

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Frustration with analytics

1. 2. 3. 4. 5. Poor knowledge about what to measure Limited time / resource to interpret the data Lack of senior management buy-in Lack of coherent strategy / business objectives Cost associated with paid-for solutions
Knowledge - there's almost too much information out there, every time I learn something new it all just gets bigger - which is exciting as well as frustrating. With Google offering such a good service for free it's hard to justify the cost of upgrading analytics if staff are not also deployed/employed.

Time to do as much analysing as we would like to. Being dragged in different directions by different business needs.

Lack of strategy and operations insight, lack of interaction and knowledge sharing within our organisation, lack of understanding of basic measuring slang on user side, lack of time to focus on implementation planning.

Reluctance of senior management and IT staff to respond to data and optimise accordingly, plus unwillingness to carry out A/B and multivariate testing.

The lack of understanding of the metrics - it is vital that we 'translate' web metrics into specific recommendations for our clients, as the data gets ignored otherwise.

Lack of internal skills to apply analytics in a co-ordinated manner to website, online and offline activities.

Positive and negative aspects of online measurement

Insight into shopping cart behaviours (card abandon rates etc), differing behaviours of new and existing users, path contributions to sale. The ability to get incredibly close to customers and understanding how they interact with your business.

For us, clients have something to show senior management that their marketing investment has paid off.

Gaining client understanding and winning them over to actioning analytics.

The fact that once you have clients buy in it is possible to show them exactly how measurable online is versus offline channels.

We only really have half an analyst, our systems aren't very well joined up and we need to spend much more time analysing data from different sources, creating a 360 degree view - and we don't have this time Not yet generating available. the quality of insight required to consistently drive Complex and costly business action. setup, in some case overwhelming amounts of data for people not Client's reliance experienced how to on using free, but view/measure this. poor quality tools (Google Lack of Analytics). interest and understanding in the value of analytics.

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Summary
Increased appetite for data especially when directly

related to business performance. Growth in use of Google Analytics shows movement away from paid-for technology.
More spending on internal staff.
But web analytics still not strategic enough or driving

actionable recommendations for enough companies. Frustrations over conflicting data, creating lack of trust. Lack of understanding is still a barrier.

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Questions?

Download the full report: http://econsultancy.com/reports/onlinemeasurement-and-strategy-report

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