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Archive for November, 2008
I have to admit I was a little surprised at how many people howled at me when I took the Vendor Discovery Tool offline a few weeks back, but I wanted you all to know it is back online. If you had the tool bookmarked you’ll have to update your bookmark and you may want to get in the habit of accessing it via the Research section of this site.
Why is that you ask? Funny story.
While the Vendor Discovery Tool is designed to be used by individuals researching the deployment of web analytics tools across the Internet, thanks to analytics I was able to identify a few folks who were abusing the script by running it via a what very much appears to be a bot. Unfortunately the bot appears to have been accepting cookies and executing some tracking JavaScript but not all of it (e.g., I do not observe the same pattern in my Google Analytics or IndexTools deployments!)
Not naming any names, but here is the data data I’d been working from in Omniture Discover on Premise:
Gotta love analytics, huh?
I have since blocked the offending IP address range and continue to monitor the situation. In the meantime, if you need web analytics vendor distribution data and don’t have the patience to run the script manually, please contact me directly since I’m easily able to do custom dumps of the data and typically don’t charge for the service.
Anyway, thanks to everyone who wrote me asking when the VDC would be back online and again, I’m super sorry for the inconvienience!
As we look towards 2009 there are clearly some great challenges and great opportunities facing everyone who has more than a passing interest in web analytics. But regardless of the economic situation, we all need to stay focused on making the most of the people, process, and technology we have in place today, continuing to work towards positive business outcomes.
Towards this end, I would like to invite those of you wondering exactly where to begin and looking for some sense of structure for your digital measurement efforts in 2009 to a free webcast sponsored by Coremetrics and the DMA on Wednesday, December 3rd at 10:00 AM Pacific.
In this free event I will be focusing on helping companies of all sizes at all stages in web analytics maturation take a tactical look at their long-term strategic measurement efforts. The net/net, I hope, is a “stratactical” (thanks Jennifer!) presentation that has something for everybody, regardless of the tools you’re using or how you’re currently using them.
Again, the webcast is free and open to everyone. You can register with Coremetrics and the DMA at the Coremetrics web site:
Again, the webcast is from 10:00 AM to 11:00 AM Pacific on Wednesday, December 3rd. I hope to see you there!
On a totally unrelated note, I wanted to say “Thanks” to Neil Mason of the Web Analytics Association (and now WebTraffiq) for bringing up my open letter to President-Elect Barack Obama in this week’s ClickZ column. Neil makes a comparison between European’s view on the use of cookies and the current situation within the Federal Government here in the U.S.
Particularly interesting was this passage:
“The European Parliament passed a directive in 2002 on privacy and electronic communications. Leading up to this directive, there had been a concern in the industry that cookies would effectively be made illegal as a breach of personal privacy. In the end, the European Parliament concluded it wasn’t cookies or Web bugs that infringed privacy but the inappropriate use of these devices.”
Not the cookies themselves but rather the inappropriate use of these devices. Absolutely. I would encourage any of you interested in this issue to give Neil’s column a read.
Dear President-Elect Obama,
I wanted to congratulate you on your victory in the recent election and let you know how proud I am to have witnessed the history you, your family, and your political machine have brought to America. You ran a Presidential campaign the likes this country has never seen, and I sincerely hope that the honesty, humility, and integrity you showed will set the standard for all campaigns to follow.
When CNN called the election for you I was putting my five year old to bed; when she heard the fireworks going off in my neighborhood and asked, “Daddy, what happened?” I could only answer with a tear in my eye, “History, darling. Mr. Obama just changed America forever.”
Obviously you have your work cut out for you as you inherit stewardship over what can only be described as an “ugly” situation, but I wanted to make a suggestion and plant a seed for the future.
You have wisely announced that you will appoint a Chief Technical Officer inside your administration to bring our government into the 21st century. On your own web site you state your intention to “use technology to reform government and improve the exchange of information between the federal government and citizens while ensuring the security of our networks” in an effort to open up government to all America’s citizens.
Your stated goal is to use technology to create “a new level of transparency, accountability and participation for America’s citizens” and will empower your CTO to “ensure that our government and all its agencies have the right infrastructure, policies and services for the 21st century.”
As a member of the digital measurement community with more than a passing familiarity with some of the policies imposed on web sites operated by the Federal Government, I wanted to offer up a proverbial “slam dunk” for you and your CTO to improve the quality of the digital relationship citizens have with our government:
Simply put, allow Federal Government web sites to deploy persistent, first-party cookies.
While I have no doubt about your knowledge of government or your commitment to the Internet as a communication medium, I’ll give you the benefit of the doubt and explain what I mean by “persistent, first-party cookies.” Using language taken directly from the GAO Report to the Chairman Committee on Governmental Affairs (GAO-01-424, published April 2001, PDF document):
“Federal agencies are using Internet “cookies” to enable electronic transactions and track visitors on their Web sites. Cookies are text files that have unique identifiers associated with them and are used to store and retrieve information that allow Web sites to recognize returning users, track on-line purchases, or maintain and serve customized Web pages. Cookies may be classified as either “session” or “persistent.” Session cookies expire when the user exits the browser, while persistent cookies can remain on the user’s computer for a specified length of time.”
The problem with cookies, as identified by the Office of Management and Budget, was that persistent cookies could be used to identify visitors and “learn about visitor’s browsing habits and keep track of viewed or downloaded Web pages.” From GAO-01-424:
“Although cookies help enable electronic commerce and other Web applications, persistent cookies also pose privacy risks even if they do not themselves gather personally identifiable information because the data contained in persistent cookies may be linked to persons after the fact, even when that was not the original intent of the operating Web site. For example, links may be established when persons accessing the Web site give out personal information, such as their names or e-mail addresses, which can uniquely identify them to the organization operating the Web site. Once a persistent cookie is linked to personally identifiable information, it is relatively easy to learn visitors’ browsing habits and keep track of viewed or downloaded Web pages. This practice raises concerns about the privacy of visitors to federal Web sites.”
While I do not debate the fact that a government agency could tie a persistent cookie to a name or an email address, the connection described here makes several assumptions:
- That the agency in question is collecting personally identifiable information (PII);
- That the agency in question is passing the PII to the measurement solution;
- That the measurement solution provides the necessary functionality to tie anonymous sessions to the session containing the collected PII;
- That the agency itself has assigned resources to monitor individual sessions, looking for PII;
- That anything of interest can be learned by associating anonymous sessions with identified individuals.
Unfortunately, despite the number of assumptions associated with the theoretical abuse of personally identifiable information via persistent cookies, in June 2000 the Office of Management and Budget issued guidance that unfortunately all but eliminates Federal sites ability to leverage digital measurement technology to improve the exchange of information between government and citizens. Again, according to GAO-01-424:
“[OMB] guidance established a presumption that persistent cookies would not beused on federal Web sites. Further, it provided that persistent cookies could be used only when agencies (1) provide clear and conspicuous notice of their use, (2) have a compelling need to gather the data on-site, (3) have appropriate and publicly disclosed privacy safeguards for handling information derived from cookies, and (4) have personal approval by the head of the agency.”
While a few public sector web sites have satisfied these four requirements and have been granted permission to better leverage digital measurement technology, most are hamstrung by this guidance and thus struggle to provide the best-possible web experience. And while several government web sites are wisely measuring consumer satisfaction using the American Consumer Satisfaction Index, satisfaction alone fails to provide the necessary depth required to identify the full breadth of opportunities available to most web sites operated by the U.S. Government today.
And while I don’t doubt that the OMB was acting in the best interests of the American public when issuing the guidance detailed above, the technology landscape has changed dramatically since 2000 and consumers have far greater personal control over how cookies are used when they browse the Internet. Consider the following:
Without going into spurious detail, preventing the use of persistent cookies on most government web sites has dramatically limited the breadth of technology available to better understand citizen preferences, stumbling blocks, and opportunities for improvement. Because they are forced to choose between a limited set of applications that are hamstrung by OMB guidance, an uphill battle to gain approval to use persistent cookies, and doing nothing, many government agencies are sadly choosing the latter option.
Unfortunately, the “do nothing” option hurts everyone — Government employees who genuinely want to improve the sites they maintain on behalf of the public good, U.S. citizens who sincerely want to participate in government using the most convenient communication channel available, and the Federal Government as a whole because citizens are unlikely to continue to use sites that fail to provide a good and satisfying experience.
Consider the opportunity: The Social Security Administration predicts an estimated 78 million American Baby Boomers will be retiring over the next few decades. According to my sources at SSA, the only way the agency will be able to successfully handle this volume of new applications will be electronically via SSA.gov.
Unfortunately, SSA.gov like so many sites does not yet have the level of detail required to understand where retirees suffer confusion, frustration, and anger during the complicated process of applying for retirement and disability benefits. Without this information, online applications at SSA are essentially a black-hole for the well-meaning staff working under a mandate to process this unprecedented volume while creating satisfying experiences for our citizenry.
By asking your CTO to reverse the OMB guidance currently governing the use of persistent cookies, you will immediately give Federal web site operators the ability to deploy a far wider range of technology. These applications include free solutions provided by your friend Eric Schmidt from Google (a very “budget friendly” approach) as well as market leading Software-as-a-Service solutions from great American companies like Omniture, Coremetrics, and WebTrends.
By allowing government sites to choose from a wider-range of measurement solutions, you allow each to select the most appropriate application for their specific needs. Sites with less experience or fewer resources familiar with measurement can quickly deploy entry-level solutions like Google Analytics; sites with more experience and dedicated analysts can thoughtfully deploy higher-end solutions like Omniture, Coremetrics, and WebTrends.
Ironically your own site, Change.gov, briefly appears to have had Google Analytics deployed, hopefully so your own transition team could understand what those citizens committed to helping your administration are most interested in on the site. Tragically the Google Analytics code has since been removed, likely because of the OMB guidance. Fortunately you’re still running Google Analytics at BarackObama.com — hopefully someone on your team found the insights in Google Analytics useful as you redefined how a Presidential candidate campaigns via the Internet.
In fact, the privacy policy at BarackObama.com would serve as an excellent example of how the new Federal Government could talk about citizen privacy online. In addition to great information about the use of IP addresses, cookies, and consumer choices regarding online privacy, your policy already states:
“We may use pixel tags (also known as web beacons or clear GIF files) or other tracking technology to help us manage our online advertising and to analyze and measure the effectiveness of online advertising campaigns and the general usage patterns of visitors to our Web site.”
I recognize that I may have not made the most clear case for your CTO to revisit OMB guidance on the use of cookies; hopefully my readers will add their comments and cover any ground that I missed. And hopefully, as you work to resolve the litany of crises we face today, you’ll ask yourself “how we can improve citizen use of government web sites?” and when you do, someone will point out this post as one possible solution.
Suffice to say, if anyone in your administration would like a longer, more detailed explanation of my proposal, please don’t hesitate to call. Like the majority of my fellow citizens, I heard you loud and clear when you said “Yes, we can.” And like many, it was the “we” that resonated in your statement; the problems we face today are far too great for any man, woman, politician, or agency to solve alone. Only by working together, by bridging the gap between the past and the future, and by leveraging the technology at our fingertips will we begin to appreciate the full potential of America and Americans.
Again, congratulations on your historic victory and thank you for renewing the confidence I have when I tell my son and daughter that no matter who they are or where they’re from, in America we all have the opportunity to be truly great.
Sincerely,
Eric T. Peterson
CEO and Founder, Web Analytics Demystified, Inc.
Portland, Oregon
For the past few weeks I have been thinking about the economy and trying to reconcile two seemingly contradictory observations:
- The economy sucks, and it doesn’t seem likely to improve anytime very soon
- The web analytics sector is reportedly recession-proof and, in fact, predicted to grow in 2009
While I hardly need to provide any proof of the first observation, evidence for the latter has been emerging from a variety of voices in our community for the past few months. Case in point:
In the E-consultancy report, the organization’s head of research Linus Gregoriadis was quoted as saying: “The profile of Web analytics continues to grow as it becomes more integral to business decision-making and organisational strategy. The credit crunch is putting the spotlight on analytics as organisations work harder to understand where they are getting the best return on investment and where real value is being added.”
Recently, Josh James, the CEO of Omniture said something similar during the Q&A portion of the company’s Q3 earnings call in response to a question about whether businesses saw web analytics as discretionary:
“Every dollar that a marketer has, I think everyone has in every organization is under pressure right now and certainly marketing spend is where CFOs like to look and see if they can cut. But, what we’ve seen with our customers is their online channels are the ones that are performing the best. Their online channels are the ones that are giving the most direct impact within that quarter that spend is also taking place.
In terms of the way that they think about Omniture, even if they cut let’s say 10% of their marketing spend, they’re going to use us to a) identify the 10% they’re going to cut and b) use us to optimize the other 90% to try to get back up to the same results as they had with the 100% the year before. These kinds of times actually drive usage of our product.
When things are good it’s a lot easier when you want more sales just to throw more money at the top of funnel and to generate more leads and go through the process. When things get bad people try to focus on of everyone that’s already coming to our store, what can we do to keep them more attracted? What can we do to get them to look at other things? What can we do to get them to read additional articles? All of those behaviors drive uses of our product.”
All of this sounds absolutely spectacular. Except for one thing …
I’m not sure I believe any of it.
I think that we are collectively starting to suffer from the echo chamber effect, essentially reiterating that web analytics will be fine in this lousy economy because, unsurprisingly, we are all making money off of web analytics and we would very much like to continue doing so. The WAA, IQ Workforce, my friend Jim, E-consultancy, Omniture, me … our collective businesses are all more or less explicitly tied to continued investment in the sector. So why wouldn’t we look for data that suggests that the picture continues to be rosy and the future bright?
Why indeed.
In terms of the data presented above, as a former researcher I would offer this assessment: many of these surveys appear to suffer from sample bias. Asking the Yahoo! group, members of the Web Analytics Association, or the audience attending Emetrics about their interest, investment, or organizational focus on web analytics is kind of like asking your average Democrat in Portland, Oregon how they feel about Barack Obama. The problem is not the audience, the problem is the interpretation: I think it is misleading to extrapolate the responses from a non-random sample of businesses and business people to the larger audience.
This kind of sampling leads to claims like “52% of online marketing managers are currently engaged in A/B or multivariate testing …” Fifty-two percent implies that tens of thousands of online marketing managers are testing. Which sounds great, except that when Offermatica and Optimost were acquired by Omniture and Interwoven they had a few hundred customers between them, and Stephane Hamel’s WASP tool reports that 0.4% (zero point four percent) of the Top 500 online retailers are using easily detected A/B or multivariate testing tools.
Don’t get me wrong, I too have been guilty of sampling biased audiences, although in the past year I have stopped conducting primary research due to both the sampling issue and the plethora of free research that suddenly appeared in the marketplace.
Ultimately I’m suspicious of this optimistic data that we’re seeing, especially in the context of statements like this one made by Mr. James made on the earnings call referenced above about the effect the economy is having on Omniture’s ability to forecast Q4 and 2009:
“Towards the end of September however, it became apparent that the challenging macroeconomic and financial environment may have some impact on our business going forward although it remains difficult to quantify the uncertainties specifically.”
Mr. James and his CFO specifically don’t want to talk about 2009 on the call. Which makes sense to me, since here are some other data points:
- The economy sucks, and without belaboring the obvious, it appears that this suckiness will stay with us for quite some time;
- While I don’t question Mr. James assertion that his best customers make excellent use of web analytics, in my personal experience this is not universally true;
- Some of the largest consumers of web analytics products are starting to struggle;
- Despite the conventional wisdom that dictates that brilliant analysts are safe when times are tough, I am getting more and more calls from brilliant analysts who are being laid off or being offered severance packages to walk away.
It is this last point coupled with something I learned at Emetrics that has me the most concerned. In D.C. at Emetrics I heard Liz Miller from the CMO Council say that most CMO’s are a few years away from fully understanding the value of web analytics. If Liz is right, and her credentials are impeccible when it comes to the CMO’s office, then given the anecdotal evidence that continues to come in I wonder if web analytics is slightly more discretionary than we’d like to believe.
Don’t get me wrong, I sincerely hope to be wrong in this assessment. As an author, public speaker, evangelist, consultant, and conference co-producer focusing on web analytics I honestly hope to be able to write a follow-up post in six month saying, “Wow, I was really super-wrong about where the web analytics industry was going …”
But what can you do if I’m more right than not? What if you work in an affected sector or work for a company known for their web analytics acumen that is suddenly faced with bankruptcy or worse? What if the folks you work for who profess a great love for data-driven decision making are really HIPPOs in their heart and when the real bloodletting begins are just as likely to look for savings in areas that can be easily cut (human resources, for example) as opposed to those that would require breaking contracts?
What indeed.
If you’re in any way concerned about the current economy and your personal employment situation, here are five tips that I would offer to help you best prepare for the worst.
Tip #1: Focus on Increasing Profits, Not Minimizing Spend
My friend W. David Rhee just published a great response about the relationship between web analytics, sales, and marketing in a down economy. To paraphrase Dave, if the bosses begin to panic, you don’t want to be in a situation where you appear to be an expendable marketing cost that can be cut. It is far better to be focusing your analytical efforts on how the organization can be increasing profits, even if you have to fight to spend more time conducting analysis and less time generating reports.
Essentially you want to take Mr. James statement above to heart and work your butt off to optimize the lower-levels in your conversion funnel, working with what you already have, not what you might be able to attract. The good news is that the technology supports this analysis; the bad news is that more often than not, the deeper you get in the funnel, the more difficult optimization becomes for a variety of reasons, not limited to the business, IT, and “the way we’ve always done it!”
Be a profit center, be big picture, become truly invaluable.
Tip #2: Don’t Be a Report Monkey
The unfortunate reality about web analytics work is that far too many smart people spend far too much time generating far too many reports that far too people actually read and even fewer actually derive real value from. Sound familiar? When I started the conversation about process in web analytics in 2006 at Emetrics, over 80% of the audience said they spent too much time on “reports” and not nearly enough on “analysis” … sadly I’m not confident that things have changed much in the past two years, especially on a percent-of-practitioners basis.
There are any number of great posts about why reporting is over-rated and how the real value in web analytics comes from careful, business-focused analysis of the data, there are still too few companies that have put the hub-and-spoke model into practice and are able to effectively leverage web analytical resources.
My advice to to step-up and find the real value in your data, even if you have to conduct the analysis on your own in the wee hours. It’s not as if you can just stop generating reports (tempting as that may sound) but if you’re a good analyst, taking the time to figure out where the real opportunities to increase revenue are is the work you want to be doing anyway. Taking the initiative to make data-powered recommendations and presenting them is a good way to demonstrate your skills and commitment to the business (but don’t stop doing the job you’re being paid to do!)
Analysts conduct analysis and make recommendations. Be an analyst.
Tip #3: Start Watching the Job Boards
Even if you feel pretty good about the situation you’re in you have to admit that the most accurate term to describe the current economy is “dynamic.” In situations like this the worst thing you can do is be caught off guard and so I would offer that spending a little time surfing the Web Analytics Demystified Web Analytics Job Board (also see the WAA’s version) would be time well spent.
According to the nice folks at SimplyHired the number of job postings looking for “web analytics” experience of some kind continues to increase:
Assuming these postings are all accurate and still open, this is fantastic news since it contradicts my thesis that our sector is at risk. The only thing that concerns me is that when I add a major market to the search, the trend graph starts to look substantially different. Here is the trend of jobs in SimplyHired for “web analytics” jobs in San Francisco:
Not quite as encouraging, huh? Now I might be using SimplyHired incorrectly but the general trend observed in the Bay Area makes me wonder if job growth in the sector is as strong as the first graph shows. Plus, anecdotal evidence suggests that an increasing number of companies are imposing hiring restrictions and outright freezes, meaning that many of these postings are effectively “inactive.”
By no means am I suggesting that any gainfully employed web analytics practitioner should jump ship in this economy unless you are absolutely confident about the situation you’ll be moving into. But keeping your eyes, and your options, open makes increasingly good sense in my opinion.
Be smart about your current employment situation.
Tip #4: Think About Your Skill Set
I recently interviewed Corry Prohens from IQ Workforce and asked Corry about requirements for web analysts and what he looks for when trying to place folks. I recommend you read the entire interview, but here is what Corry had to say about what IQ Workforce looks for:
“In general we look for someone that has tool expertise, communication / interpersonal skills (these jobs are increasingly front-office), analysis & presentation skills and some complimentary kicker (testing, SAS, SQL, search marketing, development skills, search marketing skills, etc.) based on what our clients need at the moment.”
I went on to ask Corry about what two criteria he believed would help practitioners land a great job in this economy:
“If I were a web analyst I would learn how to use SAS to manipulate data & models. I would also try to pick up experience in testing/optimization. Having one (or both) of these would open a lot more doors than a straight WA skill set.”
Real analytics experience and a focus on testing and optimization. Great advice, even if the former is somewhat non-obvious (perhaps that’s why it’s such great advice!) And while you may not be able to implement testing technology on the job, Google Analytics and Google Web Site Optimizer are free and easily implemented on a personal blog.
Push yourself and expand your skill set. Move ahead of the market.
Tip #5: Network, Network, Network
In my experience one of the most valuable things you can be doing during uncertain times is expanding your network of contacts. Fortunately the web analytics industry is pretty well set in terms of opportunities to meet other practitioners, both locally and globally. Here are a few networking opportunities that I highly recommend:
- Attend or host a Web Analytics Wednesday event. Web Analytics Wednesday is the world’s only local social networking event for web analytics professionals and it has helped dozens of folks find their next new job. Take advantage of the many events happening before the end of the year or, if you don’t see an event in your town, contact me directly about getting a chapter started where you live!
- Join the Web Analytics Demystified group at LinkedIn. A few years ago I started a LinkedIn group for web analytics professionals. Now the group has nearly 1,300 members worldwide and is open to anyone interested in getting connected via LinkedIn.
- Join the Web Analytics Association. The WAA is the only association we have and is actively working to create great value for their members around the world. Joining the WAA gets you discounts to great conferences, access to their job board, and plugs you in to an increasingly vibrant community.
At the end of the day, despite the great demand for our skills and long-term opportunity afforded to all of us, a web analytics job is like any other job. Your professional growth and development is as much a function of the people you know and your relationship to the community as your native analysis skills.
Get to know your peers. Have fun while you do it!
What Do You Think?
This has become a ridiculously long post considering that I could have just said, “I think there is more risk than we realize. Be prepared.” Most of us working in the web analytics arena have become quite used to the good times rolling and have every faith that they will continue to roll. Only now, budgets are shrinking, jobs are being lost, and the general fear is that the President-Elect will create a business climate that is somewhat less friendly than most would like.
Still, my firm belief is that if you’re great at what you do and if you’re working for folks who clearly “get” the web analytics value proposition you have nothing to worry about. All I would caution is that you not assume the latter is true, again especially in the context of the conversations I have constantly about senior-management not really understanding the art and science of digital measurement and analysis.
So now it’s your turn. Do you think I’m way off base? Do you believe the data I was somewhat critical of earlier in this post? Does your boss “get” web analytics? Are you optimistic like Mr. James that your company will be able to leverage your investment in Omniture (or whatever) to optimize your marketing spend? Or are you worried about your job, or worse, have you been laid off?
I normally don’t allow anonymous comments but given the somewhat sensitive nature of this post and the feedback I’d love to hear, as long as the comments are appropriate I’ll approve them.
If there was once clear statement made this past Tuesday with the election and overwhelming mandate given to President-elect Barack Obama it was that people around the world are concerned about the economy. In fact, it feels as if we’ve gone well beyond President Clinton’s “It’s the economy, stupid” statement back in the early 90’s and have arrived at “It’s the economy, period.”
Given the number of conversations I have had with web analytics professionals lately about layoffs, offered severance packages, buying slowdowns and the like I wanted to check with a friend who works directly on the front lines of the web analytics economy: Corry Prohens from IQ Workforce.
Corry is giving a presentation at Judah Phillip’s Web Analytics Wednesday event in Cambridge on November 12th and in since I can’t make it to Boston for the event I recently asked Corry a handful of questions about web analytics, the practitioner market, and IQ Workforce’s new Contractor Exchange. Corry is a great guy and I’m sure he’d be happy to answer any questions about his responses if you want to pose them in the comments section following this post.
My questions are posed in bold and Corry’s responses follow:
Corry, one thing on people’s minds is how investment and use of web analytics is being affected by the economic downturn. What are you seeing out there?
We are seeing a shift in the market away from hiring and toward contract / interim talent. Many companies have official or unofficial hiring freezes in place. Those that don’t have added steps to the approval process for new hires, making recruiting processes much longer than a year ago. In the meantime, the work has to get done and there is a pretty consistent drum beat out there for more measurement, accountability and improved ROI. The result has been an explosion in the contract / freelance market.
At the same time, supply is increasing. The web analytics community is maturing, so there are more and more practitioners that have reached the point in their career development where they are qualified to “go independent”. Even people that are gainfully and “permanently” employed are looking for part-time freelance gigs on the side in this economy.
This is creating a perfect storm of both supply and demand. It is tying up more than 50% of my team’s time these days, whereas contract work used to be about 15% of our business.
On the perm side things are steady and unspectacular. Demand is still strong, but there are snags and delays and fits and starts with almost all of our jobs as our clients reevaluate and redefine their needs repeatedly before making hiring decisions. I don’t think you would find a huge drop in the number of web analytics jobs out there, but there is no doubt that the average time-to-hire has skyrocketed.
Do you have any bold predictions about how the market will change in 2009 for A) experienced web analytics practitioners looking for new jobs, B) web analytics consultants and C) companies looking to hire experienced web analytics talent?
I don’t think these are very bold, but here goes…
- The market for interim talent will likely continue to grow and thrive;
- The permanent market will likely stay relatively strong. It will not be anything like the mania that was out there for the last few years, but make no mistake about it – web analytics is still a hot skill set. Demand will far outpace the rest of the job market;
- Remote / virtual office positions will continue to grow more popular;
- Convergence between site analytics, optimization and offline analytics (and mobile analytics??) will continue in jobs and practitioners’ skill sets.
The rest will depend on how quickly and how sharply the rest of the economy improves.
Speaking of practitioners, there is an odd conversation going on in the Yahoo! group about qualifications for web analytics practitioners. What are the top five things YOU are looking for when you get resumes?
I can understand why this is a major debate because there is a lot of variation in web analyst jobs. Depending on where web analytics resides in the organization, the structure, the size of the company, the culture, the tools, etc. the top 5 will shift quite a bit. There are not that many vanilla web analyst jobs – many of them are tied in with testing & optimization, offline & customer data analysis, search marketing, ad serving, database skills, etc. In general, the smaller the company the bigger the job (the more things skills they are looking for / hats the candidate will wear).
Companies also look for specific vertical market expertise, or experience in their “type” of site (subscriber, free media, ad driven, Internet retail, lead generation, etc.)
Unrealistic expectations are common. Many companies still don’t get web analytics. If they are relatively new (as a company or as individuals) to web analytics, there is a tendency to lump hard-to-find skills together into a mountain and create impossible-to-fill positions. We try to be good consultants on this issue, but sometimes a job has to stay open for 6-months before a company reevaluates their requirements. HR people, in particular, seem to have a hard time distinguishing between requirements and wish lists.
In general we look for someone that has tool expertise, communication / interpersonal skills (these jobs are increasingly front-office), analysis & presentation skills and some complimentary kicker (testing, SAS, SQL, search marketing, development skills, search marketing skills, etc.) based on what our clients need at the moment. One of our biggest gaps to bridge is location – not skills. There are lots of great people out there and we are often working out ways to get them relocated or set up in virtual office jobs.
If you had to pick only two criteria likely to help practitioners land great jobs in this economy, what would those criteria be?
If I were a web analyst I would learn how to use SAS to manipulate data & models. I would also try to pick up experience in testing/optimization. Having one (or both) of these would open a lot more doors than a straight WA skill set.
I keep getting email about rates for consultants out there. I know what I charge, but what are you seeing in the market on an hourly and daily basis? Does that change by geography or experience? Or if you blog are you able to charge more?
If blogging enabled me to charge more I wouldn’t have to work anymore.
There is a big difference between consultants and contractors. What you do and what we do should not be compared. In fact, we are careful not compare ourselves with any web analytics consultancy. If you look companies like Stratigent, Technology Leaders, or the interactive agencies, they are approaching the client’s problems in a very different way.
If a client knows what they need and they have somewhat of a plan for how to get it done, they can hire a contractor / freelancer that has the expertise to execute. This person will work on a time & materials basis and there will not be any guarantee for deliverables.
If a client doesn’t know what they don’t know and they need a company to perform a broader range of services, such as: conducting an assessment, creating a roadmap and a strategy, specking out a project, etc. They should use a full-service consulting company and pay the freight. Their resources are theoretically backed-up by expertise in the rest of the firm and they provide some kind of a guarantee around deliverables.
The contractors that we currently have on billing range from $55/hour to $110/hour. From what I have seen, the full service consultancies and pro services groups charge anywhere from $125 – $300/hour for equivalent expertise along with all of the value-add that I mentioned above.
You just launched a contractor’s exchange at IQ Workforce. Tell me about that?
We had to do something to streamline our contracting business. The volume of candidates and requirements that we were getting was becoming unmanageable. The Contractor Exchange is basically our way of more efficiently marketing our inventory of interim talent to the community.
We ask our contractors to post their credentials on our website. Our team approves the postings and then we market the profiles to the marketing and analytics executives in our network.
One of the biggest problems for contractors is staying billable – it is very hard to sell and deliver at the same time. The Contractor Exchange is a free way for contractors and freelancers to gain visibility to an extremely relevant audience so that we can generate opportunities for them.
Thanks to Corry for taking the time to answer my questions. Please check out the IQ Workforce web site if you’re looking for help hiring web analytics talent (IQ Workforce sponsors the Web Analytics Demystified Job Board and we’re mighty grateful for that!)
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