Google Giving Away Analytics

At first glance, it looks like Google is about to make high-priced solutions like Omniture irrelevent.

…but then, if it only works for Adwords-driven traffic, it doesn’t quite do the trick.

For smaller e-commerce companies, who can’t afford Omniture and who have a limited PPC budget anyway, it might be sufficient. By offering this to merchants in the Adwords program, Google may sway even more of their ad spend to Adwords, assuming the merchants can bring their Adwords ROI to new heights using this free analytics solution.

As for larger scale e-commerce companies, they are (hopefully) already using solutions by companies like Omniture, Coremetrics  and ATG to manage their marketing spend…. and their merchandising planning.

Here’s the thing:  Traditional (offline) retailers have a dollar-per-square-foot statistic that they use to optimize store performance. Some of them go so far as to assign a target $/sq.ft “real estate” value to key spots, such as high traffic aisles, or the so-called “end caps” along the main loss-leader route.  Merchandise placed in those prized locations must achieve those $/sq.ft. or risk being pulled.  Program managers who want to promote a new service must negotiate for those spots, “buying” them from their store managers.

In the past few years, some of the major online retailers have gotten serious about applying these concepts to their websites, and they do this by using software like Omniture’s.  Putting the right merchandise in the right spot in the store is key.  Of course, with online retail, there is personalization as well…. the right merchandise in the right place at the right time in front of the right customer.

Anyway, I like Omniture, but the thing is, as a small e-tailer, I can’t afford it. One of the reasons I can’t afford it is that if even if I cobble together the money and buy a license, I still need to hire a dedicated person who can use their analytics package and come up with actionable analysis.   Otherwise, it’s just a pretty dashboard for an executive like me to surf with.

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About danspira

My blog is at: My face in real life appears at a higher resolution, although I do feel pixelated sometimes.

Posted on November 15, 2005, in Analytics, E-Commerce and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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