The Metrix
By AZAM on March 11, 2008The Internet Economy is driven by traffic on the web and advertisers are in need of target users on the info highway. The key arbiters are the traffic monitors that measure the flow on these highways or key metrics. Advertisers are upset that the police on traffic duty are not doing their job as well as they should. The lack of accurate data on web site traffic is creating an opportunity for companies interesting in the competition and need to quantify more precisely the flow of traffic in greater detail. The recent acquisition of Compete is a sing the opportunity still needs to be addressed. Other companies like quantcast and site meter may offer a solution to industry standards such as ComScore and Nielson NetRatings, Hitwise , and Alexa (amazon).
Compete
Compete has agreed to be purchased for $75M and up to $150 M based on meeting performance targets by London based market research firm TNS. Taylor Nelson Sofres plc (TNS), a world leader in market information and insight and uses tag line the 6th sense.
Compete’s revenue for the year ended 31 December 2007 was $14.9 million, over 50 per cent higher than in the previous year. Gross assets at that date were $11.2 million. The company made a loss of $4.5 million in 2007, as it invested in building its panel and industry expertise. TNS believes the acquisition brings together the global market information strength of TNS with Compete’s digital intelligence products and capabilities. Digital intelligence combines data on user behaviour and interactions on the internet with demographic and competitive information, to help businesses and marketers make critical, strategic and tactical business decisions. The combination will give Compete greater exposure to foreign market for expansion and enhance TNS market research offering.
Compete conducts continuous analysis of internet clickstream data from close to 2 million people, weighted to match the US online population. The information is used to measure how consumers engage and make buying decision of products or services online, relative to the competition. The ability to analyse online behaviour before a purchase is made enables the company to advise clients on how to target online communications to individual consumers, to influence both their online and offline purchasing behaviour.
The Competition
Compete offers Web traffic stats for free on its site Compete.com, and competes with Alexa, Quantcast, and comScore among others. The various web analytics firms and traffic analysis use different methods for analysis. The man issue in evaluating traffic numbers is accuracy in the method of reporting. The reliance on the cookie as the tool for measurement is often mentioned as faulty data point. Compete does not have a direct method of measuring on website of client site, but uses clickstream data form user group to measure and report on web traffic analysis . Quantcast has a more open approach allowing users to join and placing a tool on site for direct measurement of site to generate more accurate reporting and combines inference algorithm for reporting on web analytic traffic with demographics.
Quantcast
Quantcast enables any web publisher to “quantify” their media properties by participating in the Quantified Publisher program. This free program uses tags to assess entire audiences, combining directly measured traffic statistics with multiple panel data sources to generate highly accurate audience profiles. This approach to audience measurement solves a critical gap in the march to addressable advertising by offering fine grain audience profiles that can be used to segment and target advertising campaigns.
Quantcast enables any web publisher to “quantify” their media properties by participating in the Quantified Publisher program. The free program uses tags to assess entire audiences, combining directly measured traffic statistics with multiple panel data sources to generate highly accurate audience profiles. The approach in audience measurement solves a critical gap in the efforts towards the addressable advertising market by offering a more granular audience profiles that can be used to segment and target advertising campaigns.
Quancast combines the directly measured data with the panel-based information and uses Mass Inference algorithm to produce refined profiles that accurately represent web audiences. Users can see estimates for gender, age, household income, and other demographic information in the reporting.
After recent round of funding Quantcast co-founder and CEO Konrad Feldman noted in, “Quantcast is changing the way the media industry measures and identifies audience segments through a collaborative, direct-measurement platform.”
Also, Quantcast measures traffic both on web sites and flash media such as videos or widgets.
Both companies offer different solution sand methods of analysis that will enhance the measurement of traffic and web analytics. The data points would increase higher levels of clarity that has been lacking and often shown conflicting or inaccurate data. Advertisers will benefit with the use of different sets of tools to gain further data for comparison and interpretation in the analysis for more accurate understanding. It is not quite clear if one methodology will be relied upon for industry standards for advertiser seeking accurate analysis of numbers and demographics. The industry is still young and offers a number of opportunities for greater tools to improve upon to allow deep level of understanding and accuracy for greater confidence in accurate reporting. Advertisers will benefit with more successful campaigns and lead to more profitable opportunities for parties involved.
Categories : Media & Ads, TechTags : , compete, comscore, quantcast, web analytics