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How Analytics Have Become Central To Online Success

Analytics are now a major part of every website, we investigate why this is the case

2Sep

In November 2005 Google released Google Analytics. Since then it has gone on to become the world’s number one analytics product, empowering millions around the world to measure their success and failures online.

It is used by everyone from the largest companies in the world to the smallest bedroom bloggers, but why is it so popular?

I wanted to have a look at why analytics have become so popular in the online world and how they have changed the landscape of the web forever.

Reactivity

With analytics people could suddenly see what people liked and what they didn’t, it allowed for designs to be altered based not the behaviour of people rather than what designers assumed people would like. Suddenly companies could react to the needs of their customers without needing to do in-depth and time consuming studies into what their users thought.

Advertising

With the rise in analytics came accurate numbers of visitors to sites. This meant that companies could actually tell advertisers the precise numbers of people who clicked on an ad on one site or arrived at their site from an advert elsewhere. This meant that ROI could be calculated with increasing accuracy and as such PPC became a viable business strategy.

Entire Business Knowledge

Not only do web analytics help with website design, but actually have a major impact on overall business strategy. It allows companies to see what their customers like not just in terms of usability, but in terms of interest for products and services. A page that is showing a particular product can be measured for popularity or how long people stay on the site for rather than just leaving straight away. This can be used to inform business decisions and release new products.

There were analytics products before Google Analytics (it is actually based on the work done by a company that Google bought in March 2005) but with Google Analytics the environment changed and democratised this capability. It has been the foundation for many company’s success and without a doubt it has been one of the biggest innovations in online businesses.

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