Definition of Web Analytics
Although some elements of performance measurement were technically available at the inception of the World Wide Web in the early '90s, interest for measuring web business performance has been on the rise over the past couple of years. If anything, three disruptive circumstances might explain this level of attention for web analytics:
- Google democratization of web analytics with the launch of its free Google Analytics service in 2005
- Marketing uncovered clear benefits of Web performance data to optimize online marketing activities
- The economical downturn of 2008-2009 forces ebusiness initiatives to be measured and accountable for success.
A Marketing centric definition of web analytics
The Web Analytics Association defines web analytics as "the measurement, collection, analysis and reporting of Internet data for the purposes of understanding and optimizing Web usage". This definition centers on Internet data and website optimization from an online marketing point of view, whilst the broader scope of analytics, process and business optimization isn’t specifically addressed.Definition of "analytics"
Davenport and Harris, in "Competing on Analytics: The New Science of Winning
" are among the few providing a conceptual background to analytics and business optimization. In their book, the authors define analytics as being "the extensive use of data, statistical and quantitative analysis, explanatory and predictive models, and fact-based management to drive decisions and actions". This definition, much broader than that of "web analytics", is considered to be a subset of business intelligence: "a set of technologies and processes that use data to understand and analyze business performance".Proposed definition of "web analytics"
I'm defining web analytics as:The extensive use of qualitative and quantitative data (primarily, but not limited to online data), statistical analysis, exploratory (multivariate testing) and predictive models (behavioral targeting), business process analysis and fact-based management to drive a continuous improvement of online activities and improved ROI.As we will see in the Web Analytics Maturity Model, the earlier stages naturally focus around online marketing, and the higher level match the lower realm of Davenport definition of "competing on analytics".
Want more?
This post is part of a series extracted from my MBA thesis paper. Comments and critiques welcomed!Previous:
Coming up:
What are the components of a maturity model? Critics of 6 current models, the WAMM model itself and several case studies.
View all posts on Maturity Model topic.
For further information regarding the WAMM and its future evolution, including speaking, consulting and training, visit the Web Analytics Maturity Model area on immeria.net.
7 comments:
I like your more general definition. But I thought it was missing "$". Here is a slightly different version.
The extensive use of on-line and off-line qualitative and quantitative data, statistical analysis, explanatory (multivariate testing) and predictive models (behavioral targeting), business process analysis to optimize site experience, marketing mix, technology, and ROI.
Excellent point, the description should not only include online optimization but also balance it against financial realities... either financial constraints (limited budget) or improved benefits (by reducing costs or improving incomes).
What about VOC? Is this included in "qualitative" data?
Sebastien: exactly, "qualitative" is descriptive or based on some quality rather than on some quantity. VOC is an example, or things like star rating of products or articles, or even text analysis of comments, etc.
"Quantitative" data is based on some quantity or number.
Thank you for the previous comments. Now it makes more sense.
A definition should stand on its own, but it is often useful to try to find the relevant boundaries.
I would suggest that you expand your post to include:
1) Analytical (or quantitative) marketing (AM/QM), i.e. using formal models to address the entire scope of the marketing domain.
2) Webometrics (WM), i.e. measuring the Internet.
The difference between AM and WA is quite obvious. WA is a specialized area of AM.
The difference between WM and WA is one of focus. WA is typically focused inbound. You track users coming to your site, compute various statistics and try to assess the impact of such or such on behavior. WM has an outbound focus -- what are can we find on the Internet on such and such.
There is some kind of a blur between WM and WA. SEO is focused outbound. It is also a rather completely different line of business. Some could argue that WM is half of WA, and that something else, yet to be named, focused on the behavior of Internet users as they interact with you online.
gauvins Thanks for your comment, it provides a slightly different angle to web analytics that I will explore a bit more.
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