Web Analytics Demystified

Archive for August, 2007

Congratulations to the WAA Standards Committee!

I wanted to say congratulations to Jason Burby, Angie Brown, and everyone on the Web Analytics Association’s Standards Committee for publishing their standards document last week. Given the number of web analytics terms they defined (26) and the somewhat slow process the Association has for getting documents approved, this effort is a huge milestone for the organization, one that Jason and Angie deserve great praise for indeed!

If you haven’t already downloaded and read the definitions, check them out here (PDF download).

While the PDF document says that the final product is “Web Analytics Definitions – Version 4.0″ this is clearly a “Web Analytics 1.0″ document. The committee relegated all of the really wonderful Web 2.0 stuff like AJAX, RSS, XML, and the such to the same confusing obscurity they exist in today with the comment “certain technologies including (but not limited to) Flash, AJAX, media files, downloads, documents, and PDFs do not follow the typical page paradigm but may be definable as pages in specific tools.”

Given the last year’s push towards measuring Web 2.0 the right way and some great, insightful work from folks like Ian Houston and Judah Phillips it is kind of a shame that this document doesn’t address event-based measurement architecture more directly. The group does define “event” but only does so under the header of “Conversion Metrics” stating that an event is “any logged or recorded action that has a specific date and time assigned to it by either the browser or server.

Sounds like the definition of a Web 2.0 event to me, but I’m not sure why this is relegated to conversion metrics.

Regardless, this is great and valuable and useful work on the part of these hard-working volunteers. But the definition of standards raises one particularly important question: Given the definition of standards, what the hell do web analytics practitioners do with them?

The Fundamental Problem

The fundamental problem with these definitions (and any standard definitions IMHO) is that without an enforcement mechanism they are unlikely to provide any real benefit to the folks in the trenches. As long as smart folks like Eric Enge at Stone Temple Consulting continue to uncover as much as a 154% difference in the measured number of visitors and a 161% difference in the measured number of page views between concurrently deployed solutions, the average web analytics end user should not be comforted by the existence of standards.

Put another way, it is not the definition of standards that makes a difference, it is the adherence to standards by technology vendors that will provide the portability of skills, knowledge, and solutions so desired by many in our industry. Jason Burby sagely points this out in his Clickz article on his volunteer work when he says:

“Companies often switch metrics tools and subsequently change the terms they use to discuss analytics. One tool will call something one name, while another tool calls it by a different name or applies different meanings to a very similar name. When people switch tools and bring data with them, they don’t get an apples-to-apples comparisons. As a result, companies lose the important year-over-year view.

Though the new standards won’t instantly take care of that issue, they provide a step in the right direction.”

The Barrier to the Adoption of Standards

The problem as I see it is this: For many web analytics vendors, the way they calculate some of the critical metrics in web analytics is the “secret sauce” in their solution. Consider the WAA’s definition of unique visitors which states that unique visitors are:

“The number of inferred individual people (filtered for spiders and robots), with a designated reporting timeframe, with activity consisting of one or more visits to a site. Each individual is counted only once in the unique visitor measure for the reporting period.”

This is perfectly reasonable, but the definition goes on to say that “a unique visitor count is always associated with a time period (most often a day, week, or month), and it is a non-additive metric.”

Do you wonder what the folks at Visual Sciences who have spent millions to perfect their “data wheels” technology that effectively removes the “time period” requirement would say to this? One of the major value propositions at Visual Sciences (at least during my brief tenure) was that time was irrelevant — if you wanted the number of unique visitors for the football season, you dragged your mouse across the calendar; if you wanted the number of unique visitors for a few hours during the day, you dragged your mouse; if you wanted the number of unique visitors to your site since recording began, you dragged your mouse.

You can make the case that this example more or less removes the time dependence associated with the WAA definition. But should all the vendors who don’t have this capability (anywhere you are forced to use metrics like “Daily Unique Visitors”) spend the R&D money necessary to eliminate the dependence on time? Or should Visual back this functionality out of their application?

When you start to think about these kinds of things, much less issues associated with data sampling and data roll-off that occurs for a litany of reasons, you can start to understand why I made this somewhat snide comment in a MediaShift article awhile back:

“A friend of mine described it as the most beautiful fantasy…but it would never happen,” consultant Peterson said. “Omniture has a $1 billion market cap, and I don’t see Omniture tearing apart their technology to calculate unique visitors and page views differently because all their competitors have decided there’s a different way to do it. It’s hard to imagine. Not impossible. Fantasies sometimes come true.”

Ironically the cost isn’t the main problem: The impact on existing customers who would be forced to learn new definitions and suffer from potentially dramatic changes in data collection and reporting is the main problem. Do you want to be the person who has to tell a Fortune 500 customer that because you’re adopting more standard definitions that their page view count will suddenly drop by 35% month-over-month?

I had to do that once. Trust me here, it wasn’t a fun conversation to have.

An Idea in the Absence of a Solution

Given that I think that the WAA has produced some incredibly valuable work, despite some potential barriers to the work’s adoption, I do have an idea that I would love to see the Association follow-up on, one that would add a tremendous amount of value to this already great work.

I would love to see the Standards Committee create a matrix of standards compliance for each of the vendors in the marketplace today. Basically a checklist that details on a term-by-term basis which vendors are currently using the WAA definitions that would let companies looking for a solution to include that criteria in their assessment. Something that would let everyone quickly determine:

  1. How standards compliant a given solution is (and which solution today is “most compliant”)
  2. Which standard definitions are calculated out-of-box in each solution (for example, “Original Referrer” and “Bounce Rate”)
  3. Which currently available solutions dramatically differ from the norm in their use of standard terms

Something like this would probably have to be backed up with some documentation or examples as proof points, just for reference. And yeah, this is kind of a lot of work, but if you think about it all you really need is for one WAA member per solution to poke around in their documentation and then someone (Jason and Angie maybe) to collate the results and write it up. I would be happy to contribute the matrix assessment for the web analytics solution I’m using now if that would up!

Who knows, maybe we’d discover that all the vendors are already standards compliant and there really isn’t a problem with definitions!

What Do You Think?
I’d love to hear what all of you think about the new standards and my concerns about how they’ll be used (or not used.) Am I missing something? Were you disappointed to not see something that spoke more clearly to your concerns about Web 2.0 technology? Or are you just pleased that the WAA published these definitions and see them as a small-but-important first step?

Congratulations to Jennifer Veesenmeyer and June Dershewitz!

I have been patiently and politely holding my tongue for quite awhile now waiting to say CONGRATULATIONS to both Jennifer Veesenmeyer and June Dershewitz on the career changes they recently made!

Jennifer has joined the already great team at Stratigent as a Senior Web Analytics Consultant, bringing her experience and very well-liked presentation technique (highest scoring presentation at Emetrics, ever, I read!) to Stratigent and their clients. I missed Jennifer’s PIMP my Reports presentation (which apparently she doesn’t own the rights to, too bad!) but heard only amazing things about it. She and I are presenting together at Emetrics so that should be fun!
June has joined Gary Angel and the team at SEMphonic as Vice President of Analytics! I’ve written about June in the past, citing her as one of my personal heroes and the inspiration for Web Analytics Wednesday. June and I even talked about her joining me as a partner at Web Analytics Demystified but alas, the timing was not quite right. Thusly I am thrilled that she has joined another of my favorite people, Gary Angel, bringing her significant expertise to SEMphonic clients.

Both Stratigent and SEMphonic are Web Analytics Demystified business partners so this news is even better since my clients will eventually be able to benefit from Jennifer and June’s greatness as well. Win-win-win!

Congrats to Josh Manion and Gary Angel on adding these very talented professionals to their teams.

Jobs at Yahoo, Digitas, Apple and more in our job board!

When I started Web Analytics Demystified, Inc. I did one really smart thing — I asked my wife Amity to run operations for the company. One of her areas of focus is our job board, and I have to say she has been doing an amazing job at finding great companies to advertise on the site lately. There are currently nearly two dozen jobs listed, including multiple openings at Digitas and Yahoo, so if you’re currently in the market for a new job I hope you’ll see something you’re interested in.

I wanted to briefly tough on a few of the positions listed on the board, just to call them out.

First, there are a handful of great looking positions requiring web analytics experience at Yahoo! Inc. in Lara Long’s group, focusing on product management for Yahoo’s internal data collection and reporting tools. This group supports the media business and is responsible for answering all kinds of interesting questions about Yahoo’s global audience. Lara told me that they have data coming in from nearly 50 sources — qualitative, audience, testing data, etc. — and this data needs to be packaged properly and presented to the business.

If you’re an experienced product manager and have background or experience using web analytics tools, you should definitely check out these jobs! You can learn more about each of them from the following links:

I’ve talked to Lara a handful of times and she seems like a great person — she has great energy and a real passion for her work (and the web analytics industry in general!)

Second, there are a bunch of analyst and consultant positions open at Digitas in New York and one in Atlanta, GA. I know some of the folks at Digitas (Terry Cohen, Matt Jacobs, Greg Dowling) and have a great respect for the work they’re doing out there. I’m not sure how many of these positions would be working directly with Terry, Matt, or Greg but I you’d be stoked if that were the case. I’m honored that Digitas bought so many jobs on my site and I think it speaks volumes to their commitment to providing great analytics to their clients.

Given they have so many openings, the best place to look is at the job board itself!

Finally, the folks at the Apple Store are looking for a web analyst, someone to help them run their Omniture implementation. I’m a big fan of Apple lately — still loving my iPhone (but not so much AT&T’s EDGE network …) and so was excited to see this posting. I’ve heard great things about working for Apple so if you live near 1 Infinite Loop and are looking for a new gig, I definitely encourage you to check out this posting.

Thanks again to all the job board advertisers and to Amity for helping the board grow. If you have any questions about advertising on the job board I am happy to take them directly via email.

Check out the Web Analytics Demystified web analytics job board today!

I’m doing a free Webcast for the WAA on August 29th …

One of the things a lot of companies struggle with is the actual “doing” of web analytics — but web analytics is easy, right?

On August 29th I’ll examine some of our assumptions and share my foolproof strategy for success through measurement. If you’ve ever struggled to transform data into insights and insights into action, this presentation is for you!

I will also be leaving a lot of time for open Q&A at the end of the call, to give attendees a chance to pick my brain about whatever topics they would like.
But, you have to be a Web Analytics Association member to attend this free event. Yep, the WAA is a co-sponsor and they’re trying to drive membership so hopefully this (and a series of other similar webinars they have planned with industry leaders like Jim Novo and Jim Sterne) will encourage non-members to join this fine organization!

If you’re in the Web Analytics Association already you can go to a password protected page on their site to register:

http://www.webanalyticsassociation.org/en/cms/?994

If you’re not a member, but are interested in joining the organization, you can follow this link to get more information about the WAA and join today:

http://www.webanalyticsassociation.org/en/memberships/applications/add.asp

Is Google Analytics the Killer App? No.

For the past two days readers and friends have been writing me asking my opinion of Brandt Dainow’s recent iMediaConnection piece on “Google’s Killer App.” Most of the questions run along these lines:

“Is this guy insane, or did I completely miss the revolution?

http://www.imediaconnection.com/content/15823.asp

I am so impressed with Omniture I have a hard time believing that Google Analytics beats it. I have been in a bit of a bunker trying to keep the magic going here, but can you hook me up with a reality check?”

The reality check is this: Yes, Brent Dainow has apparently gone completely insane. Too bad too, since I kinda liked some of the stuff he’s written in the past.

Let’s consider some of the bizarre statements he makes in his article:

Google has killed the web analytics software industry with the release of the new version of Google Analytics. The new version was released just under two months ago and is simply a quantum leap above any other analytics product on the planet.

This is his opening statement, and I don’t know where to begin. Statements like “killed the web analytics software industry” and “simply a quantum leap above any other analytics product on the planet” are bizarre. Is Dainow paying any attention to the web analytics market? Omniture continues to accelerate, WebTrends has released a great new version of their application, Microsoft is about to release their own free offering, …

And don’t get me wrong: I really do like Google Analytics, and I use it regularly, but there is absolutely no possible justification for saying that Google Analytics is a quantum leap better than other available applications. Google Analytics has some pretty visualizations, a slick UI, and does a good job of integrating with Google’s search marketing products, but a “quantum leap?” I think not.

“Google Analytics version 2 is not revolutionary. It does not extend web analytics software by providing new forms of analysis. Neither does it extend our understanding of websites by offering new approaches. What Google has done is simply take every feature in every product on the market and put them all into one system, and then make it available for free.”

Google has “every feature in every product on the market”? Really? Are you sure? Because I can think of dozens and dozens of useful features that I’ve seen in solutions like ClickTracks, Visual Sciences, Omniture, WebTrends, Coremetrics, Unica, … basically every other solution on the market today that aren’t in the version of Google Analytics I’m using. Features like:

  • Real visitor segmentation (multidimensional, ad hoc, etc.)
  • Custom variables at the visitor, session, and page view level
  • The ability to produce custom reports for automated delivery
  • The ability to define custom metrics and customize reports in the interface
  • The ability to import metadata as an input for analysis
  • Commerce-related reports like browse-to-buy ratios
  • A browser-overlay that can be customized

(This list goes on and on and on, and has been discussed a great deal by folks like Judah Phillips and Phil Kemelor.)

Dainow continues:

“I am surprised by the range of features Google has added. I would have assumed some had been patented by the companies that created them. I can only conclude this is not the case. The range of features Google has borrowed from other products suggests the web analytics software industry managed to do 10 years of research and development without registering even one patent. This must be unique in the history of computing. If Google has stolen patented ideas, then I can only conclude they simply don’t care and will rely on their massive cash reserves to sort it out later.

I suspect that Google does not own the patent for the browser overlay, for path analysis, and the JavaScript page tag. I would not assume that Google believes they have “stolen patented ideas” but you can be sure that some lawyer, somewhere, probably does. Maybe the companies that own these patents are pissed at Google but are hesitant to sue a company with the financial resources of GOOG?

Daniow then gets a little more personal:

“I say this as someone who, until this month, ran a company that produced web analytics software and directly competed with Google Analytics. No more. There is simply no way my organization can produce the range of features Google offers and make them available for nothing. We will keep the consulting arm going but use Google Analytics as the reporting system.”

This is perhaps both the most confusing and most telling statement in the entire article. His statement is confusing because one would have thought that as the CEO of a web analytics software company Dainow would have had a more refined understanding of the features available in the market today, the patent market, and the overall utility of free software.

His statement is telling because it sounds like ThinkMetrics is about to become a GAAC (Google Analytics Authorized Consulting) partner, in which case the bizarre pro-Google rhetoric in this article begins to make sense.

[UPDATED: Brett Crosby from Google wrote me and said that ThinkMetrics was not currently nor was about to become a GAAC partner. Which really only makes Dainow's post that much more bizarre!]
At least, it makes sense that Dainow would want to write a bizarre cheerleader piece like this, I still cannot come up with any justification for iMediaConnection to publish something so strangely biased, poorly researched, and obviously wrong. Perhaps they too have decided that the rest of the vendors are dead and thusly unlikely to buy advertising on their site. I know I wouldn’t be sending a check to iMediaConnection anytime soon if I were Tim Kopp at WebTrends or Gail Ennis at Omniture.

Dainow then makes an even more confusing comment:

“I have been converted to Google Analytics version 2 purely by the strength of the product. It is not just the range of features that is impressive, it is the integration and flexibility.”

If by “integration” Dainow means “with Google’s products only”, and by flexibility he means “a total lack of flexibility” then I suppose I agree. Call me crazy, but I think integration means the ability to pass a variety of data automatically into and out-of the application using defined APIs, not just being able to see Google AdWords impressions and costs. And I think flexibility means the ability to collect multiple custom data, to define new data schemas, and to reprocess data if necessary.
I guess we just have different definitions.
Dainow continues to blather on and on (his “Blather Index” is very high in this article!) about the greatness and wonderfulness and amazing beauty of Google Analytics. For example:

“All the tables are clickable so that I can instantly drill down on the elements that stand out. For example, I recently analyzed the performance of a tourist site’s listings in travel directories. I was able to drill down on specific directories and see which pages and descriptions were working and which were not. Within the same directory, I could see some listings that had a bounce rate of 9 percent and others with a bounce rate of 70 percent.”

Well no wonder Brandt’s so in love with Google Analytics: The tables are clickable and he can instantly drill down on elements that stand out! That is certainly a feature not found elsewhere in web analytics …
I’m getting snarky so I’ll wrap this up. Dainow concludes with the following:

“But despite its failings, the overall range and flexibility of Google Analytics, combined with the price (free), leads me to expect the new version to totally dominate the market and drive most competitors out of business. You need an extremely good reason, or three, to continue staying with any other product.

If there is to be any future in web analytics software for any competitor, that company will need to rapidly expand the scope of reporting available and seriously enhance flexibility and drill-down capabilities.

Industry consolidation is sure to follow, and I expect WebTrends to be one of the few companies with the pockets to pursue such a strategy. It is surprising that Microsoft has not produced a product to compete.”

In these three short paragraphs, Dainow demonstrates a near complete lack of understanding of web analytics and the web analytics marketplace. Google Analytics already dominates the market in terms of total domains coded, but dominance isn’t defined by the breadth of your coding, it’s defined by the success your customers have using your application!

I’m not saying that GA customers aren’t able to be successful, but the data suggests that they still have a long way to go before the value of Google Analytics, or any free analytics application (sorry Ian!), can be assumed. Web analytics is hard and “pretty”, “free”, and “Googly” don’t make it any easier. Dedication and commitment make web analytics easier, not free and click-able.
There are hundreds of good reasons for any company to continue to use an alternative to Google Analytics: Dedicated support, “Enterprise-class” (sic) product features, and a company-wide commitment to customer success, not just to gathering all the world’s data, are three that come to mind.
Most of the licensed solutions on the market today have significantly greater reporting, flexibility, and drill-down capabilities than exist in Google Analytics. Visual Sciences, Omniture, WebTrends, ClickTracks, Coremetrics and others have all spent years working on these kinds of issues, and I think their customers largely agree that they’ve done a pretty good job. Visitor segmentation, custom reporting, and data warehouse analysis are all fundamentally important to “real” web analytics and are all basically absent in Google Analytics.

No disrespect to the management team at WebTrends, but don’t you think that Omniture and their $1.16B USD market cap would qualify as “having deep pockets”? Not that Omniture is likely worried at all about the competitive threat described in your article — plus they’re going to save a bundle by not advertising at iMediaConnection!

Regarding Microsoft and Daniow’s desire to sell Bill Gates his discarded web analytics solution … I think Dainow is the only person in the world who didn’t read last week about Microsoft Gatineau!
The comments at iMediaConnection basically all ask Daniow the same question–What planet are you from, dude?–and are best summarized by this comment:

“oh please….. it is lousy — we are now going to move to Omniture because of all the deficiencies in 2.0 — this kind of post must be paid by Google because people who use it for major adspends (Over 1m for us) know what a lousy move this was for us.. hey but I know the bloggers are excited.. while it has a few nice additions the removal of so many key features and the inability to see metrics together that previously were easy to compares are serious detriments.. plus it is not nearly as sophisticated as it once was.. stop drinking the kool-aid ..” (Elxiabeth schachin)

Well put, Elxiabeth.

In summary: I’m sorry to hear that things didn’t work out for Daniow’s company, especially with the great success that almost everyone else in this industry has been having for the last 24 months. And I wish him all the best as a GAAC partner — the world definitely needs more GAAC partners and smart people able to provide technical support for Google’s wonderful and amazing free application. But the kind of biased, self-serving, and poorly researched rhetoric published in Daniow’s piece has no place in the market today, at least in my humble opinion.
What do you think? Is Google Analytics going to destroy the web analytics marketplace? Is GA2 the best web analytics application in the entire universe? Are you calling your licensed vendor today to cancel your contract, and calling your broker to divest your holdings in OMTR and VSCN now that Daniow has made such a compelling case? I’d love to hear what you all have to think.

 
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