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No. 31 Google Analytics (November 30, 2005)
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Google, the company that is recently generating a buzz throughout the Internet community, has released a free web analytics service called Google Analytics.
Google Analytics is free web analytics software which was originally developed by Urchin Software Corporation, a major web analytics software company acquired by Google early this year. What makes this software so incredible is that it is truly sophisticated and FREE!
The fact that the software is free is generating a great deal of interest in both companies and individuals who want to try it out. Here at beBit too, we have downloaded Google Analytics are currently analyzing its features.
In connection with this service, many are commenting on Google's future strategy and the impact that this software will have on access logs and the Internet advertising industry. This is a good opportunity for us to touch on some points to consider from a practical business perspective when thinking about using Google Analytics.
Where Urchin analyzes access logs accumulated on a server, Google Analytics uses cookies in its analysis. It also has several newly added features. Let's take a look at the features Google Analytics offers from the perspectives of introducing the software, running the software, and then finally via a comparison with Urchin of items analyzed.
 Introducing the software
Advantages
- The service itself is free.
Disadvantages
- In order to perform analysis you must embed tags, which adds somewhat to the workload.
- If you intend to use this software at a company you may run into compliance issues, in terms of cookie distribution, aggregation of data to Google, and other factors (the Terms of Service states that Google and its wholly-owned subsidiaries may retain and use collected information).
- Access logs that existed before tag embedding cannot be imported, and as a result trends in any already stored data cannot be utilized.
Since the data in access logs vary widely depending on which analytical software is used, it seems likely that you will have to re-track trends again from the beginning when you start out with Google Analytics.
Running the software
Advantages
- The most up-to-date web analysis results can be referenced at any time.
- The impact of AdWords advertising can easily be measured, allowing you to optimize your advertising.
Disadvantages
- With the free version of the software, your analysis is limited to 5 million pageviews a month (there is no pageview limitation if you have an AdWords account).
- Since this is an ASP service, everything is dependent on Google's conditions (Google is currently not allowing new signups and there have been some problems with reports being unstable).
Since you will be able to verify the impact of your advertising at any time, it is possible that you will be able to achieve, as Google says, the "Same ad spend. More conversions." By the same token, you should be able to reduce your advertising budget and get the same number of conversions. This will be a major operational advantage for any company that previously just took shots in the dark with advertising.
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