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The UK web analytics technology and services sector is now worth more than £100 million annually, according to Econsultancy’s new Web Analytics Buyer’s Guide published today.
Econsultancy has estimated that the market will have grown by 12% in 2011 to an estimated value of £104 million, up from £93 million in 2010.
The valuation, contained in the 2012 Web Analytics Buyer's Guide, includes client-side investment on internal staff, money spent on third party agencies and total vendor revenues.
The web analytics industry continues to flourish as businesses place greater emphasis on return on investment and focus on optimising their businesses.
Econsultancy Research Analyst Andrew Warren-Payne, said: “The profile of web analytics continues to grow as it becomes more integral to business decision-making and organisational strategy. This has been demonstrated by the actions of major players such as Adobe, IBM, and Google, who have been making heavy investments.”
He added: “As marketers are asked to become ever more accountable, web analytics provides the opportunity for a measurable return on investment and deeper customer insight.”
According to the report, an important trend for this year is the continued investment in people in order to drive insight. This becomes increasingly important as tools become more complex and include greater functionality, requiring skilled and knowledgeable people to interpret data effectively.
In order to balance this, vendors have also been focusing on making their tools more intuitive, with improved user interfaces and visualisation capabilities.
Warren-Payne added: “As well as web analytics technology, businesses also taking advantage of the other products and services offered by web analytics vendors, whether it be part of a broader digital marketing suite or in the form of consulting, training and support.
“As web analytics increasingly becomes seen as more of a commodity, especially because of the free service provided by Google, these additional products and services allow vendors to differentiate themselves from the competition.”
Headline market trends
-) Companies are increasingly recognising the need for skilled analysts to draw insight from analytics. According to the Econsultancy / Lynchpin Online Measurement and Strategy Report, nearly half (52%) of web analytics spend is on internal staff, and 19% is on consulting and services.
-) Businesses are focusing on integrating web analytics with business intelligence in order to drive customer insight. Vendors are responding by improving their offerings accordingly.
-) Marketers are seeking a new layer of insight from social analytics, which is increasingly being built into web analytics products.
-) Data becomes more 'democratic' as vendors continue to make tools more intuitive and easier to use for non-technical people.
-) Vendors are addressing the complexities of the multichannel customer journey with improved tracking tools such as multichannel measurement capabilities and mobile analytics.
-) The growth of Google Analytics continues to impact the market, most recently with the release of the Premium product.
About this report
This buyer's guide is aimed at companies who are investigating the market for web analytics providers, with profiles of 14 leading suppliers.
The guide also provides detail on the issues and trends affecting this sector, as well as guidance about how to select the right technology.
There is also guidance about pricing models and costs, and a market analysis to build your understanding of this sector. There is also a section on how to find the right supplier, with tips and pitfalls for companies looking for the most suitable supplier.
Which vendors are featured in the buyer’s guide?
Adobe, Alterian, AT Internet, Bango, Cognesia, comScore, DC Storm, etracker, Google Analytics, IBM, iJento, Lynchpin, RedEye, and Webtrends.
Journalists: Please contact Econsultancy for more information about this report.
Linus Gregoriadis, Research Director, Econsultancy
e: linus.gregoriadis AT econsultancy.com
t: 0207 269 1465
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Published on: 5:06PM on 12th December 2011