As internet traffic continues to increase, web site operators are looking to dissect and understand traffic patterns on their websites
Los Angeles, CA (PRWEB) April 19, 2012
The Web Analytics Software Developers industry has benefited from the increasing use of the internet as a way to do business. According to IBISWorld industry analyst Kevin Culbert “the percentage of services conducted online increased at an annualized rate of 9.8% over the past five years. This move to conducting services online has underpinned the transition from traditional mass media to targeted one-to-one marketing. As internet traffic continues to increase, web site operators are looking to dissect and understand traffic patterns on their websites in an effort to tailor their online services to distinct consumer demographics.”
Web analytic software provides users with data, including information on where traffic originated, what pages of a website visitors access and where visitors go after leaving a site. As the internet cements itself as a fundamental marketing tool, demand for web analytics software is increasing. Culbert adds that “the invaluable nature of aggregating information has opened the industry to several forms of competition; web analytic software developers may compete on price, software capabilities, or value-added services.” Google’s web analysis platform, Google Analytics (GA), is the most widely used analytic software, and is offered for free. Google is able to provide GA free of charge because of the diversified technology giant’s other services (mainly AdWords).
The significant distinctions between service offerings have lead to two primary downstream markets for software developers. Small-to-medium businesses primarily use GA or other free services like Yahoo! Web Analytics. These services provide a robust, one-size-fits-all platform ideal for smaller businesses with less complex analytic needs and smaller budgets. Larger enterprises require custom support and are willing to pay a premium to get it; aside from personal account managers and consultants, analytic software like Omniture offers customizable integration with company sales software (e.g. Salesforce). Since very few software developers have the capacity to offer their services for free, the large enterprise market will be the most competitive over the next five years. This has led major software developers to add analytic software to their portfolios; Consequently, Culbert adds, “industry concentration is forecast to increase over the next five years.”
Internet traffic is forecast to quadruple over the next five years, leading many in the tech world to refer to data as “the new oil”. Along those lines, web analytic software platforms are establishing themselves as the essential refineries – intermediaries that take a crude product (i.e. data) and process it into concrete information and marketing tools for end-users. Thus, an exponential increase in data usage will drive demand for web analytics. The global nature of the internet and thus, the industry, will allow software developers to have a global footprint, offering services anywhere there is an internet connection. IBISWorld predicts that increasing demand and scope will fuel industry revenue growth over the next five years.
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IBISWorld industry Report Key Topics
This industry develops software that analyzes key data from websites. Key metrics include traffic analytics (e.g. volume, origin and search terms), on-site consumer behavior analysis and functions that allow users to modify their own site’s html.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
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About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.