ObservePoint’s Founder speaks out about Web Analytics Audit Software

Interview with: Robert K Seolas, Co-founder and CEO, ObservePoint

We recently had an opportunity to interview Robert Seolas, Co-Founder of ObservePoint.  ObservePoint is a partner of Lima Consulting Group and is the software that we use to conduct web audits for Omniture’s SiteCatalyst products, Coremetrics, Google Analytics, and other popular web analytics solutions.

Q: Why did you start ObservePoint?

RS: My partner in ObservePoint, John Pestana, was a Co-Founder of Omniture, one of the world’s foremost Web analytics platforms. Before retiring from Omniture, John knew the company received regular calls from customers who often complained that their analytics software wasn’t working. They always wanted to blame Omniture, but when there were hiccups, most of the time it was because there were problems with the tagging on their websites. read more

10 Most Common Web Analytics Mistakes

So you want to know the most frequent questions I get about web analytics and online marketing? I’ve tried to present them here and answer a few of them so maybe I can save you, my clients and future prospects some time so we can get onto executing profitable campaigns.

1) Free analytics are good for my business and are just as good as paid ones

Coremetrics Platform offers more than Google Analytics

First, let me say, I like Google Analytics and Yahoo’s Analytics solutions. But Google Analytics was built for Google. It serves their interest, not yours.

This might be the most common myth out there, and possibly one of the most dangerous. First and foremost, to directly dispel this rumor, the truth is that enterprise analytics solutions offer levels of detail and capabilities that free solutions such as Google Analytics don’t. Although free solutions can be hacked to a certain extent to extend their capabilities, at the end of the day they fall far short of the paid solutions in providing meaningful reports to a diversified group of stakeholders. If for example you had any interest in tracking the video drop off rates, or immediately integrating custom analytics events, records or values with a recommendations engines, you can’t.

The Omniture Online Marketing Suite offers a platform to manage the online marketing discipline for sophisticated digital marketers.

Beyond capabilities alone, you also get a lot of important side benefits as well. First amongst them is accountability and support. With free solutions you’re not paying for anything, so you get a community of blogs and consultants, which we belong to actually. If you’re paying for a solution, and if for any reason it has a problem, we’ve got help from the analytics provider to get the job done.

With paid solutions you own your data and can integrate it seamlessly with PPC bid management platforms, multi-variate testing platforms, and a host of other add-ons and integrations like Salesforce, NetSuite, SugarCRM, email marketing solutions, ad-server networks and more.

The future of analytics is in an analytics suite approach, not in point solutions. Of course, if you want to own your own data from Google Analytics, they offer a license to purchase Urchin for approximately $3,400 (the company that Google acquired in 2004 that is today known as Google Analytics). The future of analytics isn’t more data, but instead the ability to act upon that data in an a fast, efficient, and measurable way. Free solutions will never offer the level of integrated optimization that paid solutions do, and due to the great competitive advantage that such features offer, a business should be wary of the risk that going “free” might entail. Bottom line: If your business relies on the internet, you should investigate using a paid analytics platform. I have seen cases where the answer is to stay on a free solution, but more often than not, it’s time to increase conversions and there’s too much at stake to penny pinch.

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Top 10 online marketing technology trends for 2011

As the year comes to a close, and a new one begins, I reflect on the typical questions and trends I’ve seen and think about how best to advise our clients for 2011.

Top 10 Trends of 2011:

Online Marketing Predictions for 2011

10.  Facebook’s Online Marketing Platform

The adoption of Facebook’s advertising capabilities and ability to target specific segments by smaller and mid-sized firms.  While Facebook has done little this year to improve the features in its advertising portal, the business community is beginning to adopt the platform en mass.  If you haven’t heard of facebakers.com, you might want to review the international levels of adoption of Facebook as a global advertising player.

9.  Privacy Showdown becomes a major news topic in 2011

Digital marketers had a lot of press coverage on their tactics in the last half of 2011.  We’ll see public debates, but I don’t think that there will be any major changes this year in the law.  However, I do believe that we’ll see some innovations coming in the way of online reputation managers allowing both sellers and regular folks to create digital reputation management badge that can be taken with them across all websites.

8.  Smartphones for everyone.

No longer reserved for the traveling elite, smartphones have found their way into the hands of soccer moms, teenagers, tweeners, and even children.  The 7-12 year olds at church were asking for the “itouch” on their holiday gift list.  Digital cameras are going away, and devices that double as cam-corders and “The Jetsons” video telephones are coming to a hand near you.  Droid, Blackberry and Apple will fight and Blackberry will become a distant third because they haven’t catered to the all-powerful Apps content the way Droid and Apple have.  See #4 for more on this topic.

7.   Software as a Service

Major software industries are being consolidated from the traditional client / server model.  Companies such as NetSuite, Salesforce, Omniture, Rackspace, and others are finally making it possible to enjoy the benefits of the internet without having to be a propeller-headed, geek.  This is our hope and Lima Consulting Group continues to position itself to help companies benefit from these trends by integrating these software solutions for our clients.  We believe there are three “i’s” in technology Innovators (the manufacturers of software), Implementers (the installers) and Integrators (consulting companies that implement two or more of the innovators solutions).  We’ll continue to see increased competition from new entrants who present themselves as “cloud computing”, “Software as a Service” consulting companies.

Open Source software will continue to gain widespread adoption.  Drupal, Joomla, Mambo, Typo3, WordPress, and even xMod are solid tools depending on the job you’re asking them to do.  But the real innovation here will come from systems integrators that offer these solutions as a service.  Companies that allow you to setup and host these applications will do well.  I like the business model from companies such as Volusion and Shopify in this respect where for about $50 a month you get an e-commerce platform that should meet most online stores needs.

6.   Cloud Computing

Cloud computing is an amorphous term, but I’m defining it here as data centers migrating away from corporate or the home to the internet based data centers. Firms like Rackspace, Carbonite, Jungle Disk and my favorite, Box.net are really growing their user base.  The ability to integrate these applications within other software packages, (for example you can integrate Box.net within NetSuite), is a real alternative to the costly implementations for tools like Sharepoint and Documentum.  Keep an eye on the company that Computer Associates acquired, 3Tera, and software companies that virtualize data centers and applications.   This software allows data centers to move their entire operation to the data center closest to the highest levels of traffic within seconds.  As the world rotates each day, the data centers will also rotate to wherever the sun is shining.  The data center that never sees night – interesting concept towards addressing disaster recovery and increasing internet speeds while seeking best pricing on energy.  That’s enough to make the “green” contingency happy, the typical internet user and even the lawyers among us.

5.  ieverything™  vs Robot This

iPad launches, iPhone 4.0 and iOS make it easy for entry level developers to develop over 300,000 which were downloaded over 7 billion times.  The median revenue is less than $700 while the average cost to develop an app ranges between $15,000 to $50,000.   The iPad took the world by storm introducing a new category of computing, or at least bringing a niche category of tablet computing to the forefront.  Today, Barnes and Noble declared the Nook as their best selling product ever, it’s been out – what – two months?   And the Kindle brings up the 3^rd place spot filling a need for a less tech-savvy crowd.  But the real shift in 2011 will be back to subscription models to pay for content such as the WSJ, NetFlix downloaded to your devices and of course ebooks, which outsold regular books in 2010 and lastly the worlds largest media company, yep – you guessed it – Apple.  They sell more media than any other company.  So the device and the content combination will engage in hand-to-hand combat with Google’s Andoid more flexible and open platform.  Microsoft really should be the one giving Apple the competition here, they missed their chance.  If Google gets this right, they will finally be out of trouble in having 96% of their revenue coming from their online advertising product, Adwords.  Look for a bloody battle between these two in 2011, it’s going to get personal.

4.  Here an App, there an App, Everywhere an App, App!

Salesforce started the first large-scale App store with their AppXchange.  Then Apple with their App Store, then every company in the internet base Software as a Service model did.  NetSuite has the BOS network, Omniture has the Genesis partners, Droid has andoid.com and the list goes on.  The widespread adoption of the “crap apps” out there will be a major reason that the victor will emerge, and I predict that Apple will continue here for several years to lead.  While Droid has flash, and an open network, I heard once that “average products well marketed will beat good products with average marketing.”  And the iPhone is no average product, they have the first mover advantage for having created the category and they don’t appear to be letting off the accelerator in terms of innovating both their software and their hardware associated with the iPhone and iPad.  I for one have been impressed with their advances the last three years and I am eager to see what they launch in the summer with their next generation iPhone and iPad.

3.   Net Neutrality – Ain’t

Net Neutrality in 2010 allowed one standard for wireless providers and another for landlines making, in essence 2 playing fields.  This was an unfortunate ruling that would allow certain wireless providers to block features that don’t need to be blocked for any other reason than it would cannibalize the cell phone companies revenue.  Central to the issue is Skype’s video chat and voice chat using the 3G network on the major carriers.  Verizon allows it, AT&T does not.

2. Personalized Online Experiences Based on What You’ve Done on the Internet

The improvement in web analytics to allow for personalization of ads and content based on prior site visits.  Solutions such as Omniture’s Test and Target, Recommendations, Merchandising, Survey, and Search and Promote became more widely adopted and this notion of personalizing experiences on the web is the future of online experiences.  The increased integration of your entire totality of information available to digital marketers will allow them to develop a more complete picture of an individual’s online behavior and interests than ever before.  Armed with the profile information collected from social networking sites such as Facebook, linkedin, Twitter, youtube, and others they can present more relevant content and online experiences.  The first to adopt these technologies will be media companies and ecommerce marketplaces. read more

IBM, Adobe, and the future of the analytics market

Image from LeadForce1.com

With IBM’s recent acquisition of Unica we have seen the next phase in the entry of large players in the analytics market.  It was only two weeks ago that they bought Coremetrics.

IBM follows Adobe’s lead in the acquisition of analytics solutions.  Adobe threw its hat into the ring in 2009 with its purchase of Omniture, and has invested significant resources into its continued development.  However what was important to really notice about that deal was that Adobe paid $1.8 billion dollars, an acquisition that were most analysts indicated that Adobe overpaid by a wide margin.

The reason is simple: potential.  The grandfather tech companies have begun to take notice of the booming analytics business and they want to incorporate it within their platforms.  With Unica’s purchase we should expect to see a quiet period as as Adobe and IBM integrate the technology within their platforms.  However we should not expect this to be a 2 player world, there is too much money and influence in the analytics business for other gorillas in the business to ignore.

My prediction of who is next?  Oracle.  The company already offers marketing campaign, CMS, and customer engagement products and solutions.  The only piece they’re missing is analytics.  Not to be biased but I would argue that of all the solutions, analytics is the most important.  So who would they buy?

Predicta: A Brazilian analytics player with a solid management team that is providing tremendous value for its clients through the extension of modules that extend the value of data.

Webtrends: An oldie, but goodie.  They’ve had some bumpy rides over the past five years trying to get bought out in my opinion.  Their technology roadmap has been very thin and we haven’t seen a lot of innovation from this established player, but they have the potential to break out.

It is in many ways the brain food of a sophisticated e-marketing strategy.  Without analytics one can deliver content or run campaigns, but its like shooting in the dark.  You never know if you hit something on target.  Analytics provides the ability to gain consumer insights and provides actionable intelligence so that marketers can improve their Return on Ad Spend (ROAS).

Little by little companies around the world are becoming ever more aware of the power of such insight, and the limitations of the analytics mainstay (Google).  We’ll be writing an article soon on why Google analytics is not free.

As this process continues we can only expect for the market to continue to grow, and the gorillas know it.  And they want a piece.  Its a vote of confidence in this industry if it ever needed one.

Coremetrics purchased by IBM puts Web Analytics in the mainstream

As I am out and about in front of big and small companies alike, I sometimes feel like it’s necessary to explain to even sophisticated marketers the importance of measuring the Return on Ad Spend (ROAS) using software tools such as Omniture’s Site Catalyst, or Google Analytics.  The recent Adobe acquisition of Omniture seemed to make my story more believable since a known name legitimized the market leader by rolling them into their core offering.  I’m excited to see how Adobe integrates the Omniture suite deeper into it’s product lineup.

And the consolidation continues.  IBM wants to get into the analytics game.  Accenture already has.  The IBM product called WebSphere is really a set of software tools that can be configured to put together highly personalized online user experiences.  Many if not all of the WebSphere websites are generally e-commerce websites and organizations that generally have enough inventory where business process and supply chain management are supported through sophisticated automation.   Coremetrics complements IBM’s existing software and services portfolio of offerings from WebSphere, information management and business analytics and optimization.  Coremetrics has about 230 employees and IBM agreed to maintain them, as was the case with the Omniture-Adobe acquisition.   read more

Dollar Thrifty got a 45% ROI using Omniture’s platform

Nucleus Research recently published a terrific ROI analysis of an Omniture client that used the SiteCatalyst, Test&Target, Test&Target1:1 and SearchCenter products.

The analysis would make a Wharton Finance professor proud, you’ll note on the last page that there were several areas that the researches did not attempt to qualify, including the net impact of better targeting, segmentation, and promotion to customers.  In other words, there is more upside to be had in the years ahead as the online marketing teams learn how to take advantage of improved segmentation.

Dollar Thrifty Automotive Group (DTAG) deployed Omniture to create a central data hub to integrate and act on online and offline customer data, improving its ability to track, target, and measure customers’ Web activity, and increasing productivity and accuracy.

How Dollar calculated the ROI for Omniture