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    Online Measurement andStrategy Report 2009

    in association with Lynchpinhttp://econsultancy.com/reports/online-measurement-and-strategy-report

    Linus Gregoriadis

    Research Director

    Econsultancy.com

    Email:

    [email protected]

    Website:

    http://econsultancy.com

    mailto:[email protected]://econsultancy.com/http://econsultancy.com/mailto:[email protected]
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    Overview

    MethodologyFindings Information requirements

    Web analytics tools

    Use of Google Analytics Resourcing and budget

    Online measurement strategy

    Barriers to success

    Questions

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    MethodologyOnline 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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    | C Titl| 4

    Type of data analysed

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    Type of data analysed

    Need for data that helps companies improveefficiency acquisition / retention

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    70%

    63%

    58%

    53% 52%48%

    41% 40%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    Interactionbetweendifferentonline

    channels

    Customersurvey data

    CRM /customerprofiling

    (e.g. lifetimevalue)

    Customerengagement

    data

    Competitorinformation

    Interactionbetween

    online andoffline

    Third partymarket

    research

    Reputation /buzz / social

    mediametrics

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    Change in types of data analysed2x as many companies looking at reputation monitoring / social media metrics

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    Interaction between different channels 17%

    Customer survey data 1%

    CRM / Customer profiling 17%

    Customer engagement data 9%

    Competitor information -1%

    Interaction between online and offline 11%

    Third party market research -7%

    Reputation / buzz metrics 19%

    Growth (since 2008)

    http://images.google.co.uk/imgres?imgurl=http://styleobserver.com/wp-content/uploads/2008/08/goldstar.jpg&imgrefurl=http://styleobserver.com/2008/08/27/investing-in-a-vest/&usg=__9YfAapDVOahDwuqYhec04ql8hCI=&h=2427&w=2550&sz=803&hl=en&start=3&um=1&tbnid=Azl_ey23_qSuUM:&tbnh=143&tbnw=150&prev=/images?q=gold+star&hl=en&rlz=1T4DKUK_en-GBGB307GB307&um=1
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    Which data requirements are businesspriorities?

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    59% 57%48% 43% 41% 37%

    29% 28% 15%

    50%

    27% 31%40%

    42% 44%41%

    48%42%

    42%

    30%

    14% 12% 12% 15% 15%22% 23%

    30%42%

    20%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    High priority Medium priority Low priority

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    Causes of conflicting data

    Comscorevs. Nielsenvs. Hitwisevs. ABCe.

    Different data

    systems often

    provide conflictingdata and constantlyneed to be verifiedand benchmarked.

    Number of page

    views does differbetween the apps.Clicks on searchengines to page

    views from search

    engines.

    External affiliate, banner and paid

    search reports conflict with our webanalytics reporting, due to

    differences in attribution. However,attempting to replicate this

    attribution using different data setscalculated in the same way, also

    yields conflicting views of the same

    channel. Frustrating.

    Google analytics, our primarytracking tool often showsdifferent traffic figures than

    Google reporting. This seemstypical of Urchin. I imagine the

    results are better than theoriginal urchin tracking

    technology but I do wonder

    how much Google hasmodified it since disparities

    continue.

    Confusion around definition of different types of metrics

    Erosion of transparency and trust

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    | C Titl

    | 9

    Web analytics tools

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    Use of Google Analytics

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    23%

    57%

    20%

    We use Google Analyticsexclusively

    We use Google Analytics but notexclusively

    We do not use Google Analytics

    2009 results Change since 2008

    +9%

    +5%

    -14%

    +

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    Main analytics tool used (other than GA)

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    42%

    19%

    7%

    6%

    6%

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    Which do you use more frequently?

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    33%

    51%

    17%

    Google Analytics Other web analytics provider Same level of usage

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    H f d h hi l f

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    How often do you change something as a result ofan insight from Google / main analytics system?

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    7%11%

    5%

    59%58%

    49%

    26%27%

    31%

    7%4%

    15%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Companies exclusively using GA Companies not exclusively using GA Companies not using GA

    Never Occasionally Frequently Very frequently

    D thi k G l A l ti h b

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    Do you think Google Analytics has beenset up properly?

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    Companies exclusively using GA

    71%

    16%

    13%

    Yes No Don't know

    61%15%

    23%

    Yes No Don't know

    Companies not exclusively using GA

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    Reasons for not using Google Analytics

    | Online Measurement and Strategy Report 2009 || 16

    31%

    18%

    28%

    10%

    2%

    11%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    It isn'tsophisticated

    enough for ourrequirements

    We are happy withexisting web

    analytics vendor

    We haven't gotround to trying it

    We don't wantGoogle to have

    this data

    We can't get it towork properly

    Other

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    | Course Title| 17

    Resourcing andbudget

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    Number of dedicated web analysts

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    46%

    26%

    15%

    5%

    2% 2%

    4%

    46%

    32%

    8%

    6%

    2% 1%

    6%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    45%

    50%

    0 1 2 3 4 5 More than 5

    2009 2008

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    Total analytics spend

    | Online Measurement and Strategy Report 2009 || 19

    32%

    11%10% 10%

    8%

    6%5%

    19%

    31%

    8%

    11%10%

    12%

    4%5%

    18%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

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

    2009 2008

    S lit f l ti dit

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    Split of analytics expenditure

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    Internal staff 42% +6%

    Technology 38% -7%

    Consulting/services 18% 0%

    Growth (since 2008)2009 results

    Who owns the budget for analytics within

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    Who owns the budget for analytics withinyour organisation?

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    32%

    26%

    13%12%

    6%

    1% 1%1%

    5%4%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

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    | Course Title| 22

    Online measurementstrategy

    Do your web analytics drive actionable

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    Do your web analytics drive actionablerecommendations?

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    27%

    55%

    18%

    1%

    26%

    58%

    16%

    0%0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    Yes - definitely Yes - sometimes No - not really Never

    2009 2008

    Areas responsible for analysing analytics data

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    Areas responsible for analysing analytics data

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    Marketing 89%

    Executive/Management 58%

    Sales 31%

    Operations 29%

    Finance 11%

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    | Course Title| 25

    Barriers to success

    Barriers to effective measurement strategy

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    Barriers to effective measurement strategy

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    Lack of budget/resources 45%

    Lack of strategy 31%

    Siloed organisation 29%

    Lack of understanding 25%

    Too much data 18%

    Lack of senior buy-in 18%

    Difficulty reconciling data 17%

    IT blockages 17%

    Lack of trust in analytics 16%

    Finding staff 12%

    Poor technology 9%

    Frustration with analytics

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    Frustration with analytics

    Knowledge - there's almosttoo much information out

    there, every time I learnsomething new it all just getsbigger - which is exciting as

    well as frustrating.

    1. Poor knowledge about what to measure

    2. Limited time / resource to interpret the data

    3. Lack of senior management buy-in

    4. Lack of coherent strategy / business objectives

    5. Cost associated with paid-for solutions

    Reluctance of senior

    management and IT staffto respond to data and

    optimise accordingly, plusunwillingness

    to carry out A/B andmultivariate testing.

    Lack of strategy and

    operations insight, lack ofinteraction and knowledge

    sharing within ourorganisation, lack

    of understanding of basic

    measuring slang on userside, lack of time to focus onimplementation planning.

    Time to do as much

    analysing as wewould like to. Beingdragged in different

    directions by differentbusiness

    needs.

    With Google offering

    such a good service for

    free it's hard to justifythe cost of upgradinganalytics if staff are

    not alsodeployed/employed.

    The lack of understanding

    of the metrics - it is vital thatwe 'translate' web metrics

    into specificrecommendations for ourclients, as the data gets

    ignored otherwise.

    Lack of internal skills

    to apply analytics in aco-ordinated manner to

    website, online andoffline activities.

    Positive and negative aspects of online

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    Positive and negative aspects of onlinemeasurement

    | Online Measurement and Strategy Report 2009 || 28

    Insight into shopping cart

    behaviours (card abandonrates etc), differingbehaviours of new

    and existing users, pathcontributions to sale.

    For us, clientshave something toshow senior

    management thattheir marketinginvestment has

    paid off.

    The ability to get

    incredibly close to

    customers andunderstanding howthey interact withyour business.

    The fact that once

    you have clients buy

    in it is possible toshow them exactlyhow measurableonline is versus

    offline channels.

    We only really have half an

    analyst, our systems aren'tvery well joined up and we

    need to spend much moretime analysing data from

    different sources, creating a360 degree view - and we

    don't have this timeavailable.

    Lack of

    interest andunderstandingin the value of

    analytics.

    Complex and costly

    setup, in some caseoverwhelming

    amounts of data forpeople not

    experienced how toview/measure this.

    Client's reliance

    on using free, butpoor quality tools

    (GoogleAnalytics).

    Not yet generating

    the quality ofinsight required toconsistently drive

    business action.

    Gaining clientunderstanding

    and winning themover to actioning

    analytics.

    Summary

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    Summary

    Increased appetite for data especially when directlyrelated to business performance.

    Growth in use of Google Analytics shows movementaway from paid-for technology.

    More spending on internal staff.

    But web analytics still not strategic enough ordrivingactionable recommendations for enough companies.

    Frustrations over conflicting data, creating lack of

    trust. Lack of understanding is still a barrier.

    | Online Measurement and Strategy Report 2009 || 29

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    Questions?

    All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by anymeans, electronic or mechanical, including photocopy, recording or any information storage and retrievalsystem, without prior permission in writing from the publisher. Copyright Econsulancy.com Ltd 2009.

    Download the full report:

    http://econsultancy.com/reports/online-

    measurement-and-strategy-report

    | Online Measurement and Strategy Report 2009 || 30

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