2010 Australian Web Analytics Report

Transcription

1 2010 Australian Web Analytics Report Assessing the uptake of web analytics in Australia, and providing expert commentary on how Australian businesses can use web analytics to succeed online. April Page 1 of 52

2 Key Findings The majority of respondents (51%) believed that they are highly effective/effective in their use of the online channel. However a significant proportion (42%) believe they are somewhat effective in leveraging this channel. Those who are not effective at all make up 7% of respondents. 39% of respondents would be negatively impacted if the online channel was unavailable. Alternative channels such as call centres and branches will compensate for 27% of respondent organisations, with an additional 27% using the online channel to supplement sales and operations only. Organisations that use the online channel as their primary one are more likely to use web analytics tools, allocate resources and funding, share reports across their organisation and as a result take action based on them. 63% of respondents are using Google Analytics in 2010, increasing from 50.5% in 2008 and 36.2% in 2007 Web Trends, was used by 15.7% of respondents in 2010, declining from 24.5% in Omniture was used by 14.2% of respondents in 2010 increasing in use by 4.8% since our survey began in Of all web analytics activities Campaign Analysis (46%) and Conversion Analysis (37%) are those performed most regularly by respondents in 2010, this has not varied greatly since Site Search analysis is performed regularly by 35% of respondents in 2010 (declining by 11% since 2007), and by an additional 46% of respondents on a sometimes basis. Landing Page Optimisation activities are performed by 52% of respondents sometimes in contrast to 24% of respondents who do this regularly. 60% of respondents trust the data extracted from their web analytics tools 75% of the time with around 20% of respondents trusting the data 100% of the time. The Marketing department has become heavily responsible for many web analytics activities. 43% of web team personnel are located within marketing divisions, increasing from 36% in We also see a gradual decline over the years in this staff being located within the IT department or as an independent team. In 2010, 27% of respondents have web analytics activities as the part time responsibility of multiple employees; this is a trend we have continued since In 2010, 41% believe web analytics is perceived of less importance compared to other functions, rising from 28% in We also see a decline over the last twelve months of its importance as a strategic function that empowers decision making processes from 35% to 23.7%. The allocation of spending on web analytics has had a relatively consistent pattern since this survey was conducted in 2007 with respondents overall continuing to allocate less than $10,000 to web analytics. In 2010, 58% of respondents believe they are able to prove to the business a formal return on investments, in contrast to 42% who are unable to do so. The top three challenges in 2010 are allocating staff, finding staff with relevant experience and taking action on results. The top three priorities for 2011 are to optimise their site through analysis, define KPIs and to formalise their reporting processes. Page 2 of 52

3 Table of Contents Key Findings... 2 List of Tables... 4 List of Figures... 4 In This Report... 5 Methodology... 5 Scope... 5 Results... 5 Comparison with Previous Report... 5 Structure and Content... 5 Geographic Segmentation... 6 Industry Segmentation... 6 Executive Summary... 8 Perceptions and Attitudes of Web Analytics... 9 Perceptions & Attitudes... 9 Web Analytics Knowledge Levels... 9 Perceptions and Attitudes of the Online Channel Perceptions & Attitudes Issues for the Online Channel Effective Use of the Online Channel Adoption of the Online Channel Technology Adoption Tool Adoption Tool Skill Levels Web Analytics Activities Performed Organisation and Management Organisation Management Expenditure Expenditure Return Value and Benefits Achieved Case Studies Deakin University Australia Sydney Water Challenges & Priorities Challenges Priorities Outlook for Web Analytics Page 3 of 52

4 List of Tables Table 1. Responses by Industry Sector 6 Table 2. Industry Sector Groupings with Percentage Respondents 2010 Survey 7 Table 3. Issues for Online Channel 12 Table 4. Effective Use of Online Channel 13 Table 5. Web Analytics Tool Use Ranking ( ) 19 Table 6. Variance on Gains Achieved between 2008 and Table 7. Top Ranked Challenges for Web Analytics ( ) 47 Table 8. Top Ranked Web Analytics Priorities ( ) 49 Table 9. Top Three Web Analytics Challenges and Priorities for List of Figures Figure 1. Knowledge of Web Analytics Self & Organisation ( ) 10 Figure 2. Use of Online Channel 14 Figure 3. Rating of Online Channel Usage 15 Figure 4. Business Impact of Online Channel Availability Issues 16 Figure 5. Web Analytics Tool Adoption ( ) 18 Figure 6. Time Using Web Analtyics Tool ( ) 20 Figure 7. Ability to Use Web Analytics Tool Self & Organisation ( ) 21 Figure 8. Web Analytics Activities (all) Figure 9. Web Analytics Activities Regularly Performed ( ) 23 Figure 10. Web Analytics Activities Sometimes Performed ( ) 23 Figure 11. Trust in Data from Web Analytics Tool(s) ( ) 26 Figure 12. Departmental Responsibilities ( ) 28 Figure 13. Web Team Location ( ) 29 Figure 14. Web Analytics Team Personnel ( ) 30 Figure 15. Perception of Web Analytics ( ) 31 Figure 16. Reports Shared ( ) 33 Figure 17. Action Taken Based on Reports ( ) 33 Figure 18. Expenditure on Web Analytics ( ) 34 Figure 19. Ability to Calculate ROI 35 Figure 20.Value derived From Investment ( ) 36 Figure 21. Gains Achieved Using Web Analytics ( ) 37 Figure 22. Web Analytics Challenges ( ) 47 Figure 23. Plans for Web Analytics ( ) 49 Page 4 of 52

5 In This Report Web analytics is the practice of measuring, collecting, analysing and reporting on Internet data for the purposes of understanding how a site is used by its audience and how to optimise its usage. Web Analytics Association The annual Australian Web Analytics Report provides valuable research into the attitudes and intentions toward the use of Web Analytics in organisations across Australia. This report provides both quantitative and qualitative analysis of the challenges facing the adoption and management of web analytics today. Bienalto carried out the study forming the basis of this report during February and March Bienalto would like to acknowledge all who contributed valuable input by completing this annual survey. We would also like to thank those who were interviewed for the case studies. Methodology Scope The purpose of the 2010 Australian Web Analytics study was to identify and assess trends in the attitudes and intentions of Australian executives in their use of the online channel and the adoption of web analytics tools. With this research study, Bienalto also aims to pinpoint and measure the issues of greatest concern to these managers to help them compare the performance of web analytics within their organisation to that of others. This study also aims to provide information to those who are setting the direction for web analytics, and implementing best in class techniques for the measurement and reporting of web sites. Results The 2010 Australian Web Analytics study is the result of an online survey across a broad range community inclusive of those with executive management, technical and creative responsibilities. Other than minor corrections, or exclusions for responses to questions that were clearly in error, the results are presented on an as is basis. As some industry sectors are represented by statistically small samples, care must be taken in drawing conclusions and projects on an industry by industry basis. All figures in this study may not be exact due to rounding. Bienalto has taken all reasonable care in compiling this study but cannot accept liability for errors or omissions. Comparison with Previous Report The 2010 Australian Web Analytics study project extends and enhances Bienalto previous research into web analytics trends since In order to assess attitudes and intentions of current interest to the reader, Bienalto has made changes in content and structure year on year. As the market for web analytics matures, typically this has included the addition of new tools/techniques to lists provided in the survey. Structure and Content The results of the 2010 Australian Web Analytics study has been organised into the following main chapters: Perceptions and Attitudes towards Web Analytics This chapter discusses the attitudes respondents have towards web analytics in Australia and their perceptions of awareness, adoption and effective use. Perceptions and Attitudes towards the Online Channel This chapter discusses the perception respondents have towards the effectiveness of the online channel, what are the most important issues being faced, and what it is used primarily for across Australian organisations. It also reveals how the online channel supports these organisations and what the business impact would be if the channel had availability issues. Technology Adoption This chapter provides information on uptake and trends for the use of web analytics tools. It also discusses what activities are undertaken by organisations, the perceived knowledge and skill Page 5 of 52

6 levels of respondents, as well as providing a ranking of the top tools used by our survey respondents since Organisation and Management This chapter discusses a number of executive management focused areas. These include those relating to staff, use of resources, budget allocation, ROI and value derived from web analytics investments. We reveal information on the strategic importance of web analytics to organisations, what reporting is undertaken, key management metrics adopted and if actions are taken based on the results. We also include in this section of the report the results of two case study interviews. Challenges and Priorities This chapter discusses what key challenges managers are facing in their implementation of web analytics. It also provides information on priorities for the year ahead. Geographic Segmentation The 2010 Australian Web Analytics survey is carried out across Australian organisations; however in some instances we do have respondents from other countries participate. In 2010, 100% of the 118 respondents were employed by organisations within Australia. Typical roles who responded to the survey include web analytics analysts, managers and consultants; creative directors, PR and marketing managers; senior executives such as CEOs and principals; as well as managers and executives for online sales and media. Online channel responsibilities for respondents included overarching responsibilities; marketing; content management; measurement and reporting; information/experience and technical architecture. Industry Segmentation The industries represented in the survey are shown in Table 1. The largest sectors thus identified were Professional and Technical Services (19.5%), Agency and Consultancy (15.3%), Government and Defence (12.7%), Financial and Insurance Services (7.6%), Education and Training (6.8%), Media and Entertainment (6.8%). Other sectors were relatively under represented, compared with country averages; however they are detailed in Table 1 for totality. Table 1. Responses by Industry Sector Professional and Technical Services 19.5% Telecommunications 1.7% Agency, Consultancy 15.3% Transport, Postal and Warehousing 1.7% Government and Defence 12.7% Agriculture, Forestry And Fishing 0.8% Financial and Insurance Services 7.6% Electricity, Gas, Water and Waste Services 0.8% Education and Training 6.8% Not for profit 0.8% Media and Entertainment 6.8% Retail 0.8% Mining, Manufacturing, Construction 2.5% Travel and Tourism 0.8% Arts and Recreation Services 1.7% Other 19.5% Source: Bienalto 2010 Australian Web Analytics Survey Page 6 of 52

7 For the purpose of further analysis within this report Bienalto has further aggregated industry sectors into larger groups as shown in Table 2. Industry Sector Groupings with Percentage Respondents 2010 Survey Table 2. Industry Sector Groupings with Percentage Respondents 2010 Survey Industry Grouping with Response Levels Production (3%) Distribution (3%) Industries Included Agriculture/construction/manufacturing/mining Transport/storage/utilities/retail/distribution/wholesale Finance and Business Services (23%) Banking/insurance/other financial services/property and business services inclusive agencies and consultancies Public Sector (20%) Government (all levels)/defence forces/health and community services/education/not for profit Leisure and other industries (50%) Recreational services/gaming/accommodation/restaurants/hospitality/cultural and personal services/communications/media/technical services and other Page 7 of 52

8 Executive Summary This annual Australian Web Analytics Report provides valuable research into the attitudes and intentions toward the use of Web Analytics in organisations across Australia. It provides the reader with both quantitative and qualitative analysis of the challenges facing the adoption and management of web analytics today and what organisations priorities are for the next twelve months. Bienalto has carried out this study since 2007, seeking answers to questions on the perception of web analytics and the online channel; technology adoption; expenditure and resource allocation to web analytics activities; and what key challenges these managers face as well as their priorities for the year ahead. This report commences with the analysis of perceptions and attitudes towards web analytics in Australia in terms of awareness, adoption and effective use. Respondents believed the need to raise awareness and educate industry on the benefits of web analytics, use of tools and how to obtain key insights from the data was top of the list. It was also believed that legislation in the use of data could hinder its adoption; as well as finding deep mining opportunities; and incompetency in the use and misinterpretation of data derived using free analytics tools. Respondents were able to provide many comments on what issues face Australian organisations in their use of the online channel and what characterises those organisations that can use it effectively. Management of the online channel received the most responses with the education of staff, clients and the market in its use and benefits ranking highly. There is also the need for consistency in metrics and standards; being able to derive relevant information from the data; and link the objectives for the online channel to strategic plans. The availability of the online channel to an organisation can be critical if it is their primary channel to market and they are reliant upon it to generate revenue and support sales and operations. This year s survey results reveal that 39% of respondents would be negatively impacted if the online channel was unavailable. Further analysis was conducted on this particular segment confirming that they are more likely to allocate resources and expenditure to web analytics and see it as a strategic function that empowers decision making processes. Of these respondents, 86% share reports across their organisation resulting in 45.6% taking action on these results All/Most of the time. In terms of technology adoption, we continue to see the use of Google Analytics dominate, followed by the use of Web Trends and Omniture. We also see Coremetrics increase in its adoption significantly over the last year. Of all the web analytics activities performed by respondents, Campaign Analysis and Conversion Analysis were those performed most regularly by respondents in 2010, this has not varied greatly since The organisation and management of resources assigned to web analytics activities was explored in the survey to understand where they are placed and how the function is perceived compared to others. The results reveal that the Marketing department has become heavily responsible for many web analytics activities. In terms of expenditure, the majority of respondents spend $10,000 or less on tools, training, staff and external professional services. However since 2007 we have seen an increase in the number of respondents who are spending more than $100,001 on these areas. Further to this, in 2010, 58% of respondents believe they are able to prove to the business a formal return on investments, in contrast to 42% who are unable to do so. We also see 38% deriving Good Value from their investment and 20% deriving Great Value. In 2010, the top challenges experienced by organisations continue to relate to finding staff with relevant experience and taking action based on results, but we see a dramatic increase in the challenge of allocating staff from 8 th position in 2008 to 1 st position this year. The top priorities for respondents in 2010 are to optimise their site through analysis, define KPI s and formalise their reporting processes. The future outlook for the use of web analytics across Page 8 of 52

9 Australian organisations looks positive as we see plans to allocate more staff and resources to defining key metrics and improving their formal reporting processes. Perceptions and Attitudes of Web Analytics Perceptions & Attitudes This chapter discusses the attitudes respondents have towards web analytics in Australia and their perceptions of awareness, adoption and effective use. The survey asked if respondents believed executives of Australian organisations understand the possibilities of web analytics. Of those who responded, 50% believed they have a good understanding with an additional 37% an average understanding. The survey results further reveal what respondents believe is the single most important issue facing web analytics in Australia. To this, respondents believed the need to raise awareness and educate industry on its benefits, use of tools and how to obtain key insights from the data was top of the list. It was also believed that legislation in the use of data could hinder its adoption; finding deep mining opportunities; and incompetency in the use and misinterpretation of data derived using free analytics tools. The majority of respondents believed that organisations who are able to use web analytics effectively understand the importance of using data (quantitative) and observation (qualitative) to support decision making and drive action. It was also commented that generally these organisations ensure there is some link in the use of this data to their business strategy and use the proof to drive smart and effective change/decisions. Businesses such as online specialists, agencies and/or marketing organisations are those who typically use web analytics as a strong competitive advantage. Web Analytics Knowledge Levels Respondents to this survey, given the subject matter, would typically have a higher understanding and knowledge of web analytics. Hence, raising both awareness and increasing education of the benefits in its use would be one of their key mandates. Further to this, the survey results reveal the vast difference between the respondents knowledge and that of their organisation. As Figure 1 reveals, since 2007 knowledge of web analytics across an organisation has continued to be at the beginner level. In contrast, respondents to the survey themselves typically have Intermediate or Advanced levels of knowledge. Over the last year we see an increase in the Advanced level user from 30% of respondents to 37% as they skill up and have more time working with the tools available. Over the next few years as the value derived from web analytics improves and self service reporting is cascaded across organisations on key metrics, we would hope to see the gap reduce between self and organisational knowledge. Page 9 of 52

10 Figure 1. Knowledge of Web Analytics Self & Organisation ( ) 60% Knowledge of Web Analytics Self & Organisation ( ) 50% 40% 30% 20% 10% (Organisation) 2008 (Organisation) 2010 (Organisation) 0% None Beginner Intermediate Advanced 2010 n=111 Source: Bienalto 2010 Australian Web Analytics Survey Page 10 of 52

11 Perceptions and Attitudes of the Online Channel Perceptions & Attitudes This chapter discusses the perception respondents have towards the effectiveness of the online channel, what are the most important issues being faced, and what it is used primarily for across Australian organisations. It also reveals how the online channel supports these organisations and what the business impact would be if the channel had availability issues. As expected, respondents were able to provide many comments on what issues face Australian organisations in their use of the online channel and what characterises those organisations that can use it effectively. To add some clarity around these many comments, we have classified them into three categories as those that relate to: Client Engagement; Management; and Marketing then summarised them in relevant tables below. Issues for the Online Channel The online channel can provide organisations with the reach and scale that in the days of only print media we could only dream of. However, if not implemented and managed effectively it can result in a waste of time and resources, as well as open an organisation up to potential legal, governance and transparency issues. For those online channel issues that fall into the Client Engagement category we found that most related to conversion, and the ability to report upon activity. Ensuring the continued relevancy and currency of your online presence was also an issue highlighted. Management of the online channel received the most responses with the education of staff, clients and the market in its use and benefits ranking highly. The need for consistency in metrics and standards and being able to derive relevant information from the data was also one of the management issues commented on the most. For larger enterprises who utilise a number of different channels their management overhead and ability to leverage each one effectively becomes an issue. Further to this the online channel needs to be linked to strategic plans in order to derive the greatest value, if the online channel is not perceived to be an important channel to market however, it will rarely be built into any strategy discussions. Marketing issues such as the ability to target, acquire and retain an audience is also further compounded if organisations have a fragmented market. Australian organisations also face the issue of bandwidth availability and how to manage the amount of traffic generated through their sites. Page 11 of 52

12 Table 3. Issues for Online Channel Category Summary of Issues Facing Use of the Online Channel Client Engagement conversion and reporting tagging and tracking, attribution/source ensuring relevancy and currency of online presence Management education of staff, clients and market in usage, benefits consistency and the definition of metrics a need for standards to be developed management of multiple channels, distribution deriving relevant information from channel data in order to plan linking the online channels use to current business issues and strategy bandwidth Marketing generation of traffic campaign management targeting, acquisition, retention, audience fragmentation Effective Use of the Online Channel Respondents were also asked to provide commentary on what they believed characterised organisations that use the online channel effectively. These comments are summarised in Table 4 below. A characteristic of particular note that is repeated in other areas of this report is the ability to measure the influences the online channel has on the business by ensuring metrics are defined correctly, are linked to the business strategy, and that reports are disseminated to management to support decision making. Page 12 of 52

13 Table 4. Effective Use of Online Channel Category Summary of Areas of Effective Use Client Engagement support customer requirements and how they interact with the channel ability to focus site purpose, content and relativity to its target audience/market Management measure influences on the business more effective allocation of budget and resources to best performing channels more effective analysis of activity resulting in focused changes to site improve ROI calculations on website investments improve management knowledge and support communications, strategic decisions and planning increase organisations knowledge improve organisations agility to respond to market demands provide information transparency to organisations management and staff Marketing ability to evaluate media options and then support it effectively drive improved search results ability to leverage online channel through more traditional marketing provide support to improve branding, innovation and integration of campaigns Page 13 of 52

14 Adoption of the Online Channel The adoption of the online channel across organisation industry sectors and size varies greatly due in large to the maturity in their use of technology and link to strategic purpose. The survey asked respondents to describe the best way their organisation uses the online channel (multiple responses were allowed). We also asked respondents to rate their organisations effectiveness in its use, and impact on sales and operations if availability issues arose. As Figure 2 shows, the traditional areas of use for the online channel such as providing information on products and services as well as communicating with business partners dominate, with 28% and 23% respectively. Organisations that offer non transactional online services such as the ability to create leads and generate quotes make up 16% of respondents. More sophisticated online functions providing fully transactional services to sell products and services online make up 10% of respondents, with 6% able to provide secure transactions and document sharing. Customer self service support is offered by 14% of respondent organisations. Figure 2. Use of Online Channel Provide secure transactions, statements, document sharing (internal and external) 6% Use of Online Channel Other 3% Communicate with customers and business partners 23% Customer selfservice support 14% Provide information on products and services 28% Non transactional generate leads and online quotes 16% Transactional sell products and services 10% Source: Bienalto 2010 Australian Web Analytics Survey Page 14 of 52

15 Respondents were asked also to rank the effectiveness in their organisations use of the online channel. As Figure 3 reveals, the majority of respondents (51%) believed that they are highly effective/effective in their use of the online channel. However a significant proportion (42%) believe they are somewhat effective in leveraging this channel. Those who are not effective at all make up 7% of respondents. In order to understand what was behind some of these responses, we conducted a number of interviews with respondents. We found that what differentiated an organisation who responded with effective in contrast to somewhat effective was their ability to segment and target all of their online campaigns successfully versus only some of the time. Please refer to the case studies within this report for more detailed information. Figure 3. Rating of Online Channel Usage Rating of Online Channel Usage 7% 20% 42% Highly effective Effective Somewhat effective Not effective 31% n=118 Source: Bienalto 2010 Australian Web Analytics Survey Page 15 of 52

16 The availability of the online channel to an organisation can be critical if it is their primary channel to market and they are reliant upon it to generate revenue and support sales and operations. The survey asked respondents to describe the business impact if the channel has availability issues. This year s survey results reveal that 39% of respondents would be negatively impacted if the online channel was unavailable (See Figure 4). Alternative channels such as call centres and branches will compensate for 27% of respondent organisations, with an additional 27% using the online channel to supplement sales and operations only. In order to provide a better profile of organisations who use the online channel as their primary one, we analysed a number of areas they responded to specifically in the survey. Of these respondents, 45.6% believe they use it as a highly effective/effective channel, 35% use it somewhat effectively and 6.5% not effectively. Of these respondents we also find that 91.3% use a web analytics tool, with 63% of them trusting the data 75% of the time. 34.8% perceive it as a strategic function that empowers decision making processes, with 86% of them sharing reports across their organisation resulting in 45.6% taking action on these results All/Most of the time. In terms of expenditure, 78.3% of these respondents are also able to demonstrate a return on their investment in the online channel. Figure 4. Business Impact of Online Channel Availability Issues Impact of Online Channel Availability Alternative channel call centre and branches will compensate 27% Other 7% Critical Primary channel for business issues would negatively impact sales and operations 39% Not Critical supplements sales and operations 27% n=116 Source: Bienalto 2010 Australian Web Analytics Survey Page 16 of 52

17 Technology Adoption This chapter provides information on uptake and trends for the use of web analytics tools. It also discusses what activities are undertaken by organisations, the perceived knowledge and skill levels of respondents, as well as providing a ranking of the top tools used by our survey respondents since The adoption of any technology needs to be inherently linked to a business strategy in order for it to have the greatest value derived. However, the strategic importance to the business of a solution in addition to economic pressures on technology selection will drive what budget and expenditure can be afforded. There are a number of Web Analytics tools now available as both free and paid solutions. While having a free solution at the outset seems to more cost effective, available research suggests having a paid solution has offered clients more value in the extraction of key data. Tool Adoption Of the tools selected, we continue to see the use of Google Analytics, a free solution, dominate since 2007 with 63% of respondents using it in 2010, increasing from 50.5% in 2008 and 36.2% in 2007 (See Figure 5). Web Trends, was used by 15.7% of respondents in 2010, declining from 24.5% in Omiture, also a paid solution typically used by larger enterprises was used by 14.2% of respondents in 2010 increasing in use by 4.8% since our survey began in On further analysis we also found that a number of organisations are using more than one tool, in some instances up to 5. Respondents using one tool only counted for 63% of responses, 25% use two tools, 9% use three and 4% use more than four. Qualitative evidence suggests that organisations extracting data from more than one tool can find misinterpretation and confusion when comparing results in addition to a number of management challenges. Table 5 shows how each of the tools ranked in their use since our survey commenced in Of particular note is the rising use of Coremetrics from 7 th position last year to fourth this year. In contrast, both Nielsen Netratings and Maximine have dropped down to equal 9 th position from 2 nd and 5 th respectively. Page 17 of 52

18 Figure 5. Web Analytics Tool Adoption ( ) Web Analytics Tool Adoption ( ) % 15.7% 14.2% % 24.5% 13.5% % 15.0% 9.4% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 140.0% 160.0% % (stacked) Google Analytics Coremetrics Web Trends NetInsights Omniture SAS Customer Analytics Site Intelligence Silhouette Urchin Hitwise Amethon Mobile Analytics Nielsen Netratings Woopra ClickTracks Maximine Server logs Eloqua WebTrends LogExpert Webaliser people browser Aprimo Unknown/Don't Know Page 18 of 52

19 Table 5. Web Analytics Tool Use Ranking ( ) Ranking 2007 Ranking 2008 Ranking 2010 Google Analytics % Web Trends % Omniture % Coremetrics % NetInsights equal 6th 5 5.5% ClickTracks % Urchin equal 6th 7 2.4% SAS Customer Analytics 8 equal 8th 1.6% Site Intelligence 1.6% Silhouette % Hitwise 8 4 equal 9th 0.8% Amethon Mobile Analytics 0.8% Nielsen Netratings 2 0.8% Woopra 0.8% Maximine 5 0.8% Server logs 0.8% Eloqua 0.8% WebTrends LogExpert 0.8% Webaliser 0.8% people browser 0.8% Aprimo 0.8% Unknown/Don't Know 13.4% Source: Bienalto 2010 Australian Web Analytics Survey Page 19 of 52

20 The survey asked respondents how long their organisations have been using their primary web analytics tool. As shown in Figure 6, over 34% have been using their primary tool for more than three years. During our case study interviews, we also revealed that a number of organisations start out using a free tool, then find they need to transition to a paid solution in order to extract greater value not only from the tool, but also from the relationship and support they receive from their vendor. This transitioning from one tool to another would contribute to the results we see in Figure 6. Figure 6. Time Using Web Analtyics Tool ( ) Time Using Analytics Tool ( ) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Less than 6 months 6 12 months 1 2 years 2 3 years Over 3 years Unknown 2010 n=109 Source: Bienalto 2010 Australian Web Analytics Survey Tool Skill Levels As mentioned earlier in this report, respondents to this survey would typically have a higher skill level than the average in web analytics. Although, as the survey is sent out to a number of industry sectors and enterprise sizes across Australia, we do continue to find responses from those with little or no skill as not all organisation would have staff focused on this function. Organisation structure and resourcing is discussed later in this report. Since 2007 close to 50% of respondents have had an Intermediate skill level with the tool they use (See Figure 7). We also see an increase in those at the beginner level and a corresponding decrease in those with an advanced level of skill. As mentioned earlier in this report, it can also be difficult to skill up if multiple tools are used across an organisation and a transition to a new tool would affect skill levels. We do continue to see a common trend in organisational knowledge and skill of web analytics tools with this continuing to be at the beginner level. This was also seen Figure 1. Knowledge of Web Analytics Self & Organisation ( ) earlier in this report. Page 20 of 52

21 Figure 7. Ability to Use Web Analytics Tool Self & Organisation ( ) 60% Ability to Use Web Analytics Tool Self & Organisation ( ) 50% 40% 30% 20% 10% (Organisation) 2008 (Organisation) 2010 (Organisation) 0% None Beginner Intermediate Advanced 2010 n=105 Source: Bienalto 2010 Australian Web Analytics Survey Web Analytics Activities Performed In order to improve and measure overall marketing effectiveness, as well as improve customer acquisition and the online experience there are a number of web analytics activities that can be performed. However, to effectively unlock the potential behind all the data a number of these need to be performed regularly rather than not at all. The results of this survey have revealed however, that the knowledge of many web analytics activities is still relatively new. This was further supported during a number of interviews with respondents and on further analysis of comments made to survey responses. As a result we find only rare examples of organisations who are performing these at the best in class level. The survey asked respondents if they perform a number of activities Regularly, Sometimes, or Never. The activities that could be selected included: A/B testing Site search analysis Campaign analysis Conversion analysis Multivariate testing Dynamic content targeting Integrating website behavioural data into CRM Landing page optimisation Page 21 of 52

22 As Figure 8 reveals, of all activities listed Campaign Analysis (46%) and Conversion Analysis (37%) are those performed most regularly by respondents in 2010, this has not varied greatly since Site Search analysis is performed regularly by 35% of respondents in 2010 (declining by 11% since 2007), and by an additional 46% of respondents on a sometimes basis. Landing Page Optimisation activities are performed by 52% of respondents sometimes in contrast to 24% of respondents who do this regularly. Of a more concerning nature were the high number of respondents who never perform Multivariate Testing (61%) and A/B Testing (54%). On further qualification with respondents, we found that this was typically due to the small amount of knowledge/skills, time and resources dedicated to the web analytics function. However, we still do see these functions performed sometimes by between 30 35% of respondents. Dynamic Content Targeting and Integrating Website Behavioural Data into CRM systems are activities that would be classified as more advanced and typically done by larger organisations that would be ahead of the maturity curve in their use of web analytics tools. We do see that these activities are on the radar for our respondents in the years ahead as they upgrade tools and integrate with more advanced CRM systems. For a more detailed view on the trends we see in the adoption of such activities regularly and sometimes by our respondents over the years, please see Figure 9. Web Analytics Activities Regularly Performed ( ) and Figure 10. Web Analytics Activities Sometimes Performed ( ). Figure 8. Web Analytics Activities (all) % Web Analytics Activites (All) % 50% 40% 30% 20% 10% 0% Never Sometimes Regularly Regularly 2007 Regularly 2008 v Page 22 of 52

23 Figure 9. Web Analytics Activities Regularly Performed ( ) 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Web Analytics Activities Regularly Performed ( ) n=109 Figure 10. Web Analytics Activities Sometimes Performed ( ) 60% Web Analytics Activities Sometimes Performed ( ) 50% 40% 30% 20% 10% 0% Page 23 of 52

24 Historically this survey has found organisations facing a number of challenges in the process of measuring, collecting, analysing and reporting on the data they obtain from their online channel and web sites. However, research suggests that some best in class organisations have been able to unlock the hidden potential of their online data for more than five years and are experiencing greater insights as a result. The survey asked respondents if they trust the data they get from their web analytics tool(s), and why. As shown in Page 24 of 52

25 Figure 11, around 60% of respondents since 2007 trust the data extracted 75% of the time. Respondents provided many comments on their reason behind this level of trust, with the majority commenting on: an inability to dedicate enough time and resources to the analysis of the data; data integrity, browser, bandwidth and JavaScript issues; interpretation of data across various tools (although for some, this aids them to reconcile); the variation in tagging; and various anomalies including human intervention and skill levels in interpretation. These comments were also very similar to those who trust the data 50% of the time. Around 20% of respondents trust the data 100% of the time. Comments provided highlighted their trust in the use of the tools such as Google a trusted brand. Others have ensured they dedicated effort and resources to web analytics activities. We have put in the effort and resourcing to ensure sound capture of data for integrity of reporting through sound implementation techniques and ongoing maintenance. For some, it is fundamental to their business and part of their service offering. It is our company we know it. Other comments which were too good not to include in this report were: Close to 100% due to in house governance, data validation and audit of analytics tools. Its also knowing the point of reality of each tool (methodology) as to how accurate the data is. ; You need to understand the limitations in order to trust the data ; An optimist ; cause we are smart enough to interpret it!. Less than 5% of respondents trust the data 25% of the time or not at all. Of the reasons provided, they were unsure on how to use the tool/interpret the data or that the results seem to fluctuate and are inconsistent. Others don t think anything online can be trusted and are naturally suspicious. Page 25 of 52

26 Figure 11. Trust in Data from Web Analytics Tool(s) ( ) Trust in the Data ( ) 70% 60% 50% 40% 30% 20% 10% 0% None of the time 25% of the time 50% of the time 75% of the time 100% 2010 n=107 Source: Bienalto 2010 Australian Web Analytics Survey Page 26 of 52

27 Organisation and Management This chapter discussed a number of executive management focused areas. These include those relating to staff, use of resources, budget allocation, ROI and value derived from web analytics investments. We reveal information on the strategic importance of web analytics to organisations, what reporting is undertaken, key management metrics adopted and if actions are taken based on the results. We also include in this section of the report the results of two case study interviews. These were conducted to further understand and elaborate on the detail behind our survey questions. The two organisations interviewed were Sydney Water and Deakin University. We asked both representatives from these companies to elaborate on their survey responses and provide some key take aways for readers of this report. Organisation The recruitment, retention and motivation of skilled technical and analytical staff across Australian organisations has been one of the key challenges facing executive management for over a decade. As the web analytics industry is still an evolving one in Australia, the placement of responsibilities and levels of skilled staff available on a part time, fulltime or contractual basis, continues to be treated of less importance to other functions, or incorporated into them. The survey asked respondents in which department or team a number of online marketing responsibilities are placed. The activities include: web analytics; search engine optimisation; paid search; social marketing; online advertising; and marketing. As Figure 12 reveals, the Marketing department or the Web Team usually hold responsibility for web analytics. Page 27 of 52

28 Figure 12. Departmental Responsibilities ( ) Departmental Responsibilities ( ) Web analytics Search engine optimisation Paid search Social marketing Online advertising marketing Web analytics Search engine optimisation Paid search Social marketing Online advertising marketing Web analytics Search engine optimisation Paid search Social marketing Online advertising marketing Web analytics Search engine optimisation Paid search Social marketing Online advertising marketing Web analytics Search engine optimisation Paid search Social marketing Online advertising marketing Web analytics Search engine optimisation Paid search Social marketing Online advertising marketing Web team Marketing IT External agency None/not being done Other 2010 n=111 Source: Bienalto 2010 Australian Web Analytics Survey Page 28 of 52

29 The survey further qualifies with respondents where their web team is located within their organisational structure. In Figure 13 we see a corresponding result to departmental responsibilities, with 43% of web team personnel located within Marketing divisions, increasing from 36% in We also see a gradual decline over the years in this staff being located within the IT department or as an independent team. Figure 13. Web Team Location ( ) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Web Team Location ( ) 36% 39% 43% 19% 21% 17% 23% 19% 14% Other Within Sales & Operations Within Marketing Within IT Within Customer Insights As an independent team 2010 n=107 Source: Bienalto 2010 Australian Web Analytics Survey Web Analytics team personnel are also recruited by organisations on a part time, full time or contractual basis. The survey asked respondents how their current web analytics team is structured. In 2010, 27% of respondents have web analytics activities as the part time responsibility of multiple employees; this is a trend we have continued since 2007 (see Figure 14). The use of a single employee doing web analytics activities part time makes up 21% of responses, although this has declined since Organisations that are able to dedicate multiple full time employees to these activities are on the increase from 10% in 2007 to 16% in This looks to be replacing the use of a single dedicated full time employee as we see this continually decline, perhaps due in part to the required skills levels, complexity and nature of responsibilities that cannot be undertaken by only one person. Organisations with no staff allocated to web analytics at all make up 20% of responses in When relating this to the strategic importance of this function, it reveals web analytics as a lower priority to other business functions. Page 29 of 52

30 Figure 14. Web Analytics Team Personnel ( ) 30% Web Analytics Team Personnel ( ) 25% 20% 15% 10% 5% % Multiple dedicated fulltime employees Single dedicated full time employee Part time task of multiple employees Part time task of a single employee Using outside agency or consultant No staff allocated 2010 n=107 Source: Bienalto 2010 Australian Web Analytics Survey Management How web analytics is perceived within an organisation will drive what focus management will place on resources, budgets and the value of any investment made. As we saw earlier in this report, the knowledge of web analytics at an organisational level is very low; until this knowledge increases it will be difficult to raise its perception as a strategic function. The survey asked respondents how web analytics is perceived within their organisation. Options selectable included: a strategic function that empowers decision making processes; of equal importance to other functions; less important compared to other functions; or not important to our business. In 2010, 41% believe web analytics is perceived of less importance compared to other functions, rising from 28% in 2007 (see Figure 15). Unfortunately we also see a decline over the last twelve months of its importance as a strategic function that empowers decision making processes from 35% to 23.7%. This will vary from industry to industry particularly for those who hold web analytics as their key service offering, however, across the corporate sector unless this perception improves the dedication of resources and funding will be limited. Page 30 of 52

31 Figure 15. Perception of Web Analytics ( ) % 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% A strategic function that empowers our decision making process Perception of Web Analytics ( ) Of equal importance to other functions Less important compared to other functions Not important to our business n=111 Source: Bienalto 2010 Australian Web Analytics Survey The ability to define key online metrics to drive management decisions and improve performance is one of the key challenges being faced by many, as one respondent to our survey comments, There are many variables to online performance and many different metrics need to be measured. It is just finding out which ones that is the hard bit! The survey asked if respondents believed it was possible to describe your online performance with a single metric or index. We received an overwhelming 91% responding No, and 9% responding yes. One of those who responded yes elaborated by commenting: A single goal will drive individuals within different departments to meet relevant metrics for a common purpose. Otherwise you end up in a scenario with selfish interests that conflict. Of those who responded no, a common theme related to the inability to calculate so many variables with one metric, in addition to most websites having varying goals which would require difference aspects of performance analysis. From all of comments provided the majority can be summed up with this one: You cannot explain everything with analysis. There are intangible and unmeasurable aspects of commercial operations such as brand and sentiment that are not aways measurable. A single metric gives an indication add a couple more and you can get a full picture of acquisition, conversion and retention. Page 31 of 52

32 Further to this, the survey asked if there was any one key metric their business measures, and why. To enable further analysis of the broad ranging commentary we categorised as follows and ranked in priority of those most nominated. 1. Online conversion rates 2. Visits 3. Traffic 4. Page impressions 5. Time Online 6. Referrals 7. Customer profitability 8. Unique browsers 9. Key words 10. Document downloads 11. Click through rate We do ask people on every page on our website "Did this page help you?" Naturally a small percentage of people ever complete that form, but their input is probably the most helpful feedback we get through our website, about our website. The dissemination of information across an organisation can also assist in building knowledge and awareness as well as increase management support/buy in. The survey asked if web analytics reports are shared within the organisation, and further to this, if action is taken based on these reports. Figure 16 shows that since 2007 over 55% of respondents do share reports within their organisation. However, as Figure 17 shows, action taken on the results of these reports occurs in most organisations only sometimes. During our interviews we asked respondents to elaborate on why this may be the case. Most believed it trended this way due to the nature of the online channel and the ability to run various campaigns for unique segments. For some campaigns they take action all of the time, whereas for others, it was half or only sometimes. Refer to the case studies within this report for greater elaboration on what two organisations responses to this question were. Page 32 of 52