Overview

In April 2013 Logic Agent ran an audit of the top 100 retail websites in order to assess market penetration of clickstream analytic vendors in the market. Online retailers are a good market benchmark because there performances are usually tightly assessed with analytic solutions. In order to compare with previous years, we used some historical data from the iPerceptions report “What Web Analytics Tools Are Used Amongst the IR500?” by Erin Polka, it covers 2009 - 2011.

The 2013 data was collected using Ethan and James, two Logic Agent products that audit web sites for analytic tags.

Clickstream analytic penetration

As clickstream analytics grew over the years, we can safely say that we have attained market saturation, in this segment at least. 2009-2011 got a 10% growth and for 2013, even if 96% of all sites are using clickstream analytics, the missing 4% are companies such as Amazon and Netflix who I really doubt are not doing any analytics. They are most likely using something we cannot detect from the outside.

Clickstream Analytic penetration

 

Results by vendors

When we look at the results by vendor, we are surprised to see the main leaders are still growing to the detriment of smaller vendors or just did not have any analytic solutions. GA growth tapered off a little, while adobe is still growing in the retail. One big surprise is IBM Digital Analytics, they saw major growth this year, in 2010 they seemed to have almost no growth, but in 2013 they are clearly the vendor that has had the biggest success, most likely due to IBM acquisition of Coremetric and Unica and conversion also of Unica customer to IBM Digital Analytics  One thing is sure, IBM is aggressive in the retail market, probably because of their other suite of products in that field, retail is more than 50% of Coremetric business, while it’s 18% of adobe (Source Buildwith.com).  IBM Digital Analytics’s gain seems to be to the detriment of the smaller vendors and maybe GA to some extend.

You may have notice that if you add up the number of the top 3 vendors you are well over 100%, the reason for this is many sites are still running multiple vendors on their sites and this trend seems to be gaining in popularity. Back in 2010, only 33% were using more than one tool, most of them using Goggle Analytic as their second solution, now a lot more sites are using more than one tool and the second tool is not just the free Google Analytic product but other commercial products as well. Why we have this duplication of analytic tags on those sites cannot be determine for the moment, we will need another study for this, but I am guessing that a mix of tags no longer in use are being forgotten, tags being fired by third party and the need to be able to compare one solution to another are part of the reason.

vendor-V2

 

Conclusion

The retail market is probably one of the best test case for analytic vendors and we can tell the competition is ferocious at the top, even with Google Analytics Premium leveraging their free solution and Adobe historical dominance in the non free market, IBM has for sure stretched some muscle and made a big impact in this market. Because of IBM offering in this field, from e-commerce to supply chain management, it has probably given them an advantage against all other vendors and it’s showing in 2013. We can clearly see it’s now a 3 player market owned by giants, Google, IBM and Adobe and the market share of the other vendors in this fields is shrinking year after year. The future will be interesting as these 3 vendors come from totally different roots and different visions addressing the exact same need, Web Analytics, they all have incredible resources and incredible weight in the market, I cannot wait to see how this will be played in 2014.

If you need custom analysis, Ethan is a powerful survey tool for analytics, feel free to contact us

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