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Online Measurement and Strategy Report 2011
in association with Lynchpin
SAMPLE ONLY. Please download the full report from:
http://econsultancy.com/reports/online-measurement-and-strategy-report
Online Measurement and Strategy Report 2011
Econsultancy London
4th Floor, The Corner
91-93 Farringdon Road
London EC1M 3LN
United Kingdom
Telephone:
+44 (0)20 7269 1450
http://econsultancy.com
Econsultancy New York
41 East 11th St., 11th Floor
New York, NY 10003
United States
Telephone:
+1 212 699 3626
All rights reserved. No part of this publication may be
reproduced or transmitted in any form or by any means,
electronic or mechanical, including photocopy, recording
or any information storage and retrieval system, without
prior permission in writing from the publisher.
Copyright © Econsultancy.com Ltd 2011
Published June 2011
Online Measurement and Strategy Report 2011 in association with Lynchpin
All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage
and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011
Contents
1. About Econsultancy ......................................................... 1
2. About Lynchpin (research sponsor) ................................ 2
3. Executive Summary and Highlights ................................ 3
4. Introduction ..................................................................... 6
4.1. Introduction by Lynchpin ........................................................... 6
5. Methodology and Sample ................................................ 7
6. Findings ........................................................................... 8
6.1. Information requirements .......................................................... 8
6.1.1. Which data requirements are business priorities? .................................... 10
6.2. Business performance and measurement tools ........................ 13
6.2.1. Use of business performance tools ............................................................. 13
6.2.2. Measuring online reputation and social media activity ............................. 15
6.2.3. Use of enterprise web analytics technologies ............................................. 17
6.2.4. Selecting an appropriate web analytics tool ............................................... 19
6.2.5. Interaction with online measurement tools .............................................. 20
6.2.6. Sharing online measurement data .............................................................. 21
6.3. Google Analytics ........................................................................ 22
6.3.1. Use of Google Analytics ............................................................................... 22
6.3.2. What is Google Analytics used for? ............................................................. 24
6.3.3. Frequency of Google Analytics usage (compared to other tool) ................ 25
6.3.4. Reasons for using additional paid-for analytics tools ................................ 26
6.3.5. Reasons for not using Google Analytics ...................................................... 27
6.3.6. Tools used for reporting or insight (Google or other vendor) ................... 28
6.3.7. ROI from paid-for analytics tool ................................................................. 31
6.4. Resourcing and budget ............................................................. 32
6.4.1. Number of dedicated web analysts ............................................................. 32
6.4.2. Number of regular contractors .................................................................... 33
6.4.3. Days of outsourced analysis ........................................................................ 34
6.4.4. Outsourced analytics functions ................................................................... 35
6.4.5. Web analytics resourcing (increase or decrease) ....................................... 36
6.4.6. Total web analytics spend ............................................................................ 37
6.4.7. Breakdown of web analytics expenditure ................................................... 38
6.4.8. Annual change in web analytics budget ...................................................... 39
6.4.9. Ownership of budget .................................................................................... 42
6.5. Joined-up strategy and measurement ...................................... 44
6.5.1. Company-wide strategy ............................................................................... 44
Online Measurement and Strategy Report 2011 in association with Lynchpin
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and retrieval system, without prior permission in writing from the publisher. Copyright © Econsultancy.com Ltd 2011
6.5.2. Driving actionable recommendations from analytics ................................ 46
6.5.3. Percentage of useful data .............................................................................48
6.5.4. Integration into broader business strategy ................................................ 50
6.5.5. Integration of analytics data with data from other sources ....................... 52
6.5.6. Analysing customer journeys that cross online and offline ....................... 55
6.5.7. Barriers preventing frameworks for analysing online and offline data .... 56
6.5.8. Attribution modelling .................................................................................. 58
6.6. Barriers to success ..................................................................... 59
6.6.1. Barriers preventing an effective online measurement strategy ................ 59
6.6.2. Main frustrations involved in managing web analytics ............................. 61
7. Appendix ........................................................................ 63
7.1. Respondent profiles .................................................................. 63
7.1.1. Company turnover ....................................................................................... 64
7.1.2. Business sector ............................................................................................. 65
7.1.3. B2B or B2C focus ......................................................................................... 65
7.1.4. Type of supply-side company ...................................................................... 66
7.1.6. Geography .................................................................................................... 67
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1. About Econsultancy
Econsultancy is a digital publishing and training group used by more than 200,000 Internet professionals every month.
The company publishes practical and time-saving research to help marketers make better decisions about the digital environment, build business cases, find the best suppliers, look smart in meetings and accelerate their careers.
Econsultancy has offices in New York and London, and hosts more than 100 events every year in the US and UK. Many of the world's most famous brands use Econsultancy to educate and train their staff.
Some of Econsultancy’s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, Virgin Atlantic, Barclays, Deloitte, T-Mobile and Estée Lauder.
Join Econsultancy today to learn what’s happening in digital marketing – and what works.
Call us to find out more on +1 212 699 3626 (New York) or +44 (0)20 7269 1450 (London). You can also contact us online.
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2. About Lynchpin (research sponsor) Lynchpin is an independent web analytics consultancy. Since 2005, we've been unlocking the
power of data to help our clients meet their online objectives.
Lynchpin matches commercial experience with technical expertise at every stage of the analytics
journey. We're equally at home providing a complete outsourced analytics function as supporting
experienced in-house analyst teams.
We forge genuine partnerships with our clients. Lynchpin works with Turner Broadcasting,
HSBC, Experian Interactive, Cadbury, Lloyds Banking Group, 3i and Apex Hotels amongst others.
Our Services:
Planning: Consultancy
We plan web analytics strategies with the right metrics, processes and technologies. Then we
empower teams to make insight core to their ongoing success
Measuring: Technology
We get the most out of web analytics technology. Vendor neutral, flexible and capable - we find or
build the right tools for the job.
Discovering: Analytics
We deliver results that matter: actionable insight, continuous performance improvement, the
right information to the right people at the right time.
Please visit our website www.lynchpin.com to find out more, or contact us on 0845 838 1136.
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3. Executive Summary and Highlights This is the fourth annual Online Measurement and Strategy Report published by
Econsultancy in association with Lynchpin.
The research is based on a survey of more than 800 companies (including both ‘client-side’ organisations and agencies) which was carried out in March and April 2011.
Key findings:
Companies continue to wrestle with a joined-up approach to data collection and
analysis, which incorporates web data into broader business strategy. Only a
minority of companies have common KPIs (key performance indicators) for
online and offline data.
– Disappointingly, fewer companies than last year say they have a company-wide strategy in
place that ties data collection and analysis to business objectives (22% compared to 25%
last year). Only 28% of respondents say that web analytics definitely drive actionable
recommendations that make a difference to their organisation, down from 31% last year.
Reliance on Google Analytics (GA) continues to grow, but many companies still
prefer to use their other analytics vendor for a range of reporting requirements.
– The proportion of companies using Google exclusively for web analytics now stands at 44%,
up from 38% in 2010 and only 23% in 2009.
Companies plan to bolster their resourcing of data analysis for both in-house
staff and outsourced analysts. Companies are more likely than last year to be
increasing budgets for consulting and other third-party services relating to web
analytics.
– 42% of companies are planning to increase the number of employees dedicated to data
analysis over the next 12 months, while a third (31%) are planning for more outsourced
analysis.
The number of companies interested in measuring their online reputation and
social media activity continues to grow.
– The proportion of companies who say they analyse reputation, buzz and social media
metrics has significantly increased.
Financial and resourcing constraints still present the biggest problems, along
with a lack of co-ordination and absence of strategy.
– The biggest barrier preventing companies from having an effective online measurement
strategy is still lack of budget and resources, though significantly fewer companies than
last year cite this as one of the three most significant issues (48% compared to 57%).
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Related reports, training and events
Reports:
Web Analytics Buyer’s Guide
http://econsultancy.com/reports/web-analytics-buyers-guide
Multivariate Testing Buyer’s Guide
http://econsultancy.com/reports/multivariate-testing-mvt-buyers-guide
Econsultancy / RedEye Conversion Report
http://econsultancy.com/reports/conversion-report
Econsultancy / Tealeaf Reducing Customer Struggle report
http://econsultancy.com/uk/reports/reducing-customer-struggle
Marketing Budgets Report 2011
http://econsultancy.com/reports/marketing-budgets
Value of Social Media Report
http://econsultancy.com/reports/value-of-social-media-report
Achieving Digital Balance
http://econsultancy.com/reports/achieving-digital-balance-best-practices-for-mastering-digital-strategy-and-
budgets
Web Analytics – Digital Marketing Template files
http://econsultancy.com/reports/web-analytics-digital-marketing-template-files
Web Analytics: A Beginner’s Guide:
http://econsultancy.com/reports/web-analytics-a-beginner-s-guide
Web Analytics Statistics
http://econsultancy.com/reports/web-analytics-statistics
Web Analytics Request for Proposal
http://econsultancy.com/reports/web-analytics-request-for-proposal-rfp
Training:
Web Measurement and Analytics Training:
http://econsultancy.com/training/courses/web-measurement-analytics
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4. Introduction
4.1. Introduction by Lynchpin
Lynchpin is proud to sponsor this ongoing research into online measurement and strategy, a topic
naturally close to our hearts as a web analytics consultancy.
The results of this year’s survey continue a story of great opportunity matched with a fair dose of
practical frustration.
As a discipline, web analytics is still experiencing some growing pains. The expectations for
insight on demand are ever-increasing; meanwhile data volumes continue to grow and start to
spread themselves across disparate sources, presenting new challenges to overcome.
With headcount of dedicated analysts growing, the focus now increasingly turns to process: how
to keep information flowing effectively around a business to drive decisions. Coordinating
technology and people remains a key point of friction in driving value from web data.
Getting the basics right is still a challenge equally worthy of focus. In the value chain of raw data
to actionable insight, the two most frequent points of failure tend to be failure to align KPIs with
business performance, and not collecting the right data in the first place through poor technology
implementation.
The first phase of consolidation of web analytics technology vendors looks to be reaching its
logical conclusion, with the number of major paid web analytics vendors yet again reduced by
mergers and acquisitions.
Google remains a powerful force in the analytics market. The extent of overlap and
complementary usage of Google Analytics alongside paid for tools hints at continuing functional
weaknesses in the paid-for toolsets set against increasing attention to data ownership.
Online measurement needs to reflect the significant growth of multichannel businesses, and here
we start to see the next phases of the market develop. Web analytics vendors are historically poor
at data flexibility. Meanwhile, traditional Business Intelligence vendors historically lack the mind-
set to deal effectively with clickstream data.
As web analytics comes of age, it needs to join-up both the online and the offline, and the
technical and the strategic. We look forward to playing our part in that process over the coming
year.
Andrew Hood
Managing Director
Lynchpin Analytics
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5. Methodology and Sample This is the fourth annual Online Measurement and Strategy Report published by Econsultancy in
association with Lynchpin.
There were more than 800 respondents to our research request, which took the form of an online
survey1 in March and April 2011.
Respondents included both client-side (in-house) organisations who measure their online activity
and supply-side respondents (i.e. agencies, vendors or consultants offering web analytics
services). The findings are shown for client-side (or ‘company respondents’) and supply-side
(‘agency respondents’) participants separately.
Please see the appendix for more information about the profile of survey
respondents.
Information about the survey, including the link, was emailed to Econsultancy’s user base. The
incentive for taking part was access to a complimentary copy of this report just before its
publication on the Econsultancy website. If you have any questions about the research, please
email Econsultancy’s Research Director, Linus Gregoriadis ([email protected]).
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1 Econsultancy uses Clicktools for its online surveys
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6. Findings
6.1. Information requirements The chart below shows the different types of information analysed by organisations. Broadly
speaking, organisations are now analysing more data than they were previously and this might
account for the lack of progress companies are making when it comes to translating data into
actionable next steps [See Figure 44]. The more data there is, the harder it is to make sense of
everything within a coherent framework.
Companies
Figure 1: What types of data does your organisation analyse?
2011 response: 382 2010 response: 227
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6.2. Resourcing and budget
6.2.1. Number of dedicated web analysts
A third of respondents (35%) say they have one dedicated web analyst, a significant drop from
2010, when 42% had a single employee dedicated to analysis of web data.
Companies
Figure 2: How many dedicated employees does your organisation have doing
analysis of web data?
2011 response: 364 2010 response: 217
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6.2.2. Ownership of budget
The chart below indicates who within the organisation is most likely to take responsibility for the
budget, and indicates this is most likely to be the remit of senior management or online
marketing.
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6.3. Joined-up strategy and measurement
6.3.1. Company-wide strategy Only 22% of companies say they have a company-wide strategy for collecting and integrating data
analysis with business objectives, while almost two-thirds (63%) say they are working on this.
Some 15% do not have a strategy in place for this at all.
Companies
Figure 3: Do you have a company-wide strategy that ties data collection and
analysis to business objectives?
2011 response: 362
2010 response: 213
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6.3.2. Barriers preventing frameworks for analysing online and
offline data
In an open-ended question, companies were asked about the main barriers to having a consistent
framework for analysing online and offline data. The tag cloud below summarises the responses.
Time, lack of understanding, budget constraints and lack of resources are frequently cited as
significant barriers.
Powered by Wordle
The lack of resources was frequently cited by respondents. Many companies are unsure of how to
put an appropriate framework in place, and some companies do not see the value of doing this.
Lack of resources – time, budget and skills
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Company and agency respondents
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6.4. Barriers to success
6.4.1. Barriers preventing an effective online measurement strategy
The main barrier to an effective online measurement strategy is still the lack of budget and
resources, which is one of the three biggest problems for 48% of organisation surveyed. However,
it is encouraging that there has been a slight drop in the proportion of companies citing this, as
this has fallen from 57% last year.
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6.4.2. Main frustrations involved in managing web analytics
Companies were asked about their main frustrations associated with managing analytics. From
this, it is apparent that a lack of understanding about the data, issues with senior management
buy-in and the lack of time and budget are all significant barriers to managing web analytics.
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Too much data / lack of time
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Company and agency respondents
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7. Appendix
7.1. Respondent profiles The figure below indicates that 59% of respondents in this survey are client-side, and some 41%
work for an agency, vendor or consultant who offer web analytics or related services.
Figure 4: Which of the following most accurately describes your job role?
Response: 840
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7.1.1. Company turnover
Some 43% of respondents report they have an annual turnover of under £10 million, including a
fifth (20%) who have a turnover of under £1 million. At the other end of the scale, almost a third
of respondents (32%) report an annual turnover of over £150 million, while 15% have a turnover
or more than £1 billion.
Figure 5: What is your annual company turnover?
Response: 346
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7.1.2. Business sector
The top business sectors covered in this survey are retail (15%), financial services (15%),
publishing (9%) and consultancy or marketing services (8%).
Figure 6: In which business sector is your organisation?
Response: 355
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7.1.3. B2B or B2C focus
A third of companies (33%) are focused on B2B exclusively, while 45% are focused on B2C.
Around a fifth (22%) are focused on both areas.
Figure 7: Is your business more focused on B2B or B2C?
Response: 351
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7.1.4. Type of supply-side company
Over half of supply-side respondents (51%) work for a digital agency, while a fifth (20%) are self-
employed consultants. Just under a fifth (18%) say they work for supply-side companies that fall
into other categories, including PR and media agencies, web analytics vendors, and IT services.
Agencies
Figure 8: What type of organisation do you work for?
Response: 257
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7.1.6. Geography
Two-thirds of companies (66%) of respondents in this survey are UK-based, while 15% are based
in Europe and 10% are from the US.
Over half of supply-side respondents (55%) are UK-based, while 14% are from Europe, and 10%
are US-based.
Companies
Figure 9: In which country/region are you (personally) based?
Response: 355
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Agencies (supply-side)
Figure 10: In which country/region are you (personally) based?
Response: 240
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