It’s not the Tools, It’s the Craftsman

It turns out that IndexTools does have nearly 80 percent of Omniture’s standard off-the-shelf functionality (77 percent to be exact). Yet, so does almost everyone else. Google Analytics has 64 percent of the standard features (excludes premium and custom features) offered by Omniture. And Coremetrics, Unica and WebTrends all deliver more standard features out of the box than Omniture. Our recently published Web Analytics Buyer’s Guide reveals that the functionality gap between Web analytics tools is narrow and differentiators will surface in flexibility and data integration capabilities. Only one-third of analytics clients surveyed listed standard features and functionality as a priority when selecting vendors. Flexibility of reporting, ability to service business needs and accuracy of information all outweigh features in the buying deliberation process.

As far as tools go, there’s not a huge difference in the tools that a carpenter would pull together to frame a house and the set that my three year old uses. He’s got a hammer, tape measure, level and a saw and walks around with them in a backpack like he’s ready to conquer the world. Despite the fact that these plastic tools will only get him so far in framing out a new house, they represent all the necessary components to do so. Yet, even with equivalent tools we all know that while one carpenter may be capable of building a magnificent abode, another might struggle with a birdhouse. Thus, today’s tools have less to do with how far an organization can go with Web analytics because other factors have significantly more impact. The ability to leverage data through unlimited segmentation, blended analysis, and capture/reporting of custom elements is becoming increasingly important as web analysts grow more sophisticated. Further, the ability to integrate multiple data sources into an analytics solution to obtain a holistic picture of business performance is a differentiating factor for data-driven organizations. Solutions that are leading the enterprise-class constellation from Omniture, Coremetrics and Unica are facilitating these complex tasks. And the others are not too far behind.

I’d like to congratulate all of the leaders in this year’s enterprise and SMB constellations and give a hearty thanks to all who participated. This report was about five months in the making and required significant help and cooperation from numerous individuals. One thing I realized in the process is that there is an analytics vendor out there for every business. I demo’ed some great tools and each one of them had at least one eye-opening quality demonstrating true innovation. Yet, attempting to definitively state which is best in the market requires understanding the unique needs of an organization. JupiterResearch reports (especially Buyer's Guides), are meant to initiate dialogue between analysts and our clients. While the report stands on its own, it is meant to be directional in nature and the insight that clients receive by understanding the content with respect to their unique businesses is invaluable. Thus, I welcome any questions or inquiries if you’d like to learn more about the method behind the report or how it applies to your business.

From the Campfire to the Rave

I’ve been on the road for the last two weeks attending what could be considered the pinnacle of the Web analytics universe. Coremetrics kicked off in Fort Worth Texas and then most recently Omniture held its client summit in Salt Lake City. The Coremetrics client summit was a full cowboy affair, complete with faux campfires, classic cowboy western video clips and line dancing (for those inclined) at Billy Bob’s bar & grill. The following week, Omniture had an entirely different thematic approach, which felt more like a rave branded in Omniture green. Prior to the opening keynote, attendees were ushered into the massive ballroom with flashing lights, a stainless steel art deco stage and full blaring rave music [check out Manoj’s pictures and video posted on WebAnalyticsWorld]. It was quite a contrast to Coremetrics event, yet there were some striking similarities between the two events. I feel extremely fortunate to have been invited to attend each one and am inclined to share my perspective on these dueling rivals in the evolving Web analytics marketplace.

Training & Education:
On the day preceding the summit, Omniture held educational sessions for newly acquired Visual Sciences customers by enlightening them on transitioning to SiteCatalyst and Discover. Participating clients that I talked to anticipated a laid back casual approach, but instead encountered a rigorous roll-up-your-sleeves intensive training session. Throughout the three days of the Omniture event, they had pros on hand to answer technical questions and aid in real-time implementation issues. They set up “Hot Labs”, for account managers to work with clients on any topic and by my observation they were well attended.

Coremetrics held its formal Coremetrics University training on the day following its summit and although I didn’t get to inquire about the results of the training sessions, numerous clients were looking forward to a comprehensive experience. Coremetrics also had pros on hand throughout the event to answer technical questions and tackle real-time problem solving. Every exec I spoke with challenged attendees to stump the experts on the floor and if my inquisitions were any indication, they were doing a solid job.

Keynotes & Presentations:
Coremetrics opened with a Wild West skit that depicted “Dusty” cowboys dependent on the digital world. A fitting analogy for the chasm that is the digital divide and a graceful segue to Joe Davis’ keynote on How the Web Was Won – or – at least continues to evolve. Laura Evans, from Resource Interactive, followed with her presentation on the Open Brand and John Squire delivered “Got Marketing?” solutions which included Coremetrics’ 2008 updates on Search, Intelligent Offer, LiveMail and Coremetrics Connect. Day two featured an in depth look at the product roadmap and a glimpse of the new toys within the interface. John Payne’s enthusiasm was unfettered as he demonstrated the new Explore data visualization tool. Eric Peterson from Web Analytics Demystified followed by walking attendees through a captivating presentation on measuring visitor engagement, his delivery continues to evolve as Eric delves deeper into the metrics and process. Coremetrics closed with a short-and-sweet message delivered by Joe Davis and a highlight reel of images and video captured throughout the event.

Omniture delivered on their promise of a mix of entertainment and education. Josh James kicked things off by illustrating the new composition of Omniture after its 2007 acquisition rampage. CTO, Brett Error then walked attendees through the SiteCatalyst v14 enhancements and other features on the development front. Peter Kim of Forrester delivered a presentation on Marketing and purportedly challenged other analyst firms to a basketball game on the premise that they could win based on more players (I think we could take ‘em shorthanded). Day one closed with Lance Armstrong’s emotional story of overcoming cancer, where he encouraged us to believe in a cause and take affirmative action. Day two began with Seth Godin’s highly entertaining presentation, first flattering the crowd by touting them as the smartest marketing minds in the universe, then challenging them to create something remarkable and break the constraints of mediocrity. Omniture closed with Brett’s summary recap, a look ahead and a lively interactive feedback session of how to improve on their solutions. He took copious notes and demonstrated Omnitures’ devotion to customer driven development.

Both companies ran multiple simultaneous tracks throughout their client summits making for tough decisions on where to focus. I found the content delivered by each vendor to be compelling, technical and highly educational. I’ll go so far as to say that the topics delivered and ensuing discussions were at a sophistication level beyond many other analytics events I’ve attended.

Breaking News & Product Releases:
Coremetrics came out of the gate with announcement of their new integration platform, Coremetrics Connect. While it’s largely a catch-up move to Genesis and even WebTrends’ Open Exchange, their documentation process and integration guidance is well-considered. John Squire delivered a message of acquisition, conversion and retention and rounded out the product enhancements (i.e., custom report templates, key segments, export builder) around these principles. The flex-based Explore product (widely available in the spring 2008 release) is a data visualization tool that quickly renders dynamic charts and enables analysts to “interrogate the data”.

Omniture’s 2008 product mix equates to 50% Web analytics solutions (comprised of SiteCatalyst, Discover On-Demand & On-Premise and Genesis integrations), 25% is Search Center and the remaining 25% is the new Test & Target combination of Offermatica and Touch Clarity. The SiteCatalyst user interface went through a dramatic redesign from v13.5 with applause-worthy menu improvements, single sign-on, video measurement, intelligent help and Web services APIs. Search Center v3 also debuted with integration capabilities that enable centralized control over multiple keyword bidding and monitoring solutions, scaleability to manage 50 million keywords and automated optimization.

Entertainment:
While this category bears no reflection on the product offerings of each vendor, Omniture was over the top. Lance Armstrong was inspirational, but the rave party with neon green light sticks, fresh sushi and Grammy award winning Flight of the Conchords was truly entertaining. Bret and Jermaine act exactly as they do on the HBO series and showcased their genuine musical abilities. The armadillo racing in Fort Worth Texas never stood a chance. I’ll admit that Billy Bob’s was a place like none other, but line dancing and bull rides do not compare. My bias for skiing over golf favored Omniture who sponsored a day at Snowbird, while Coremetrics golf enthusiasts teed up in Texas. I opted to stay in Utah for an extra day which paid off with over six inches of fresh snow and an epic day of Utah powder.

Summary:
Both vendors succeeded in showing their clients a good time, educating them on the new features and demonstrating forward-looking vision. These companies are driving the Web analytics industry forward. I expect that 2008 will be a banner year for both Coremetrics and Omniture and their rivals in the marketplace have a high bar set before them.

Wasting No Time

The url’s have been redirected and the names have been changed. It’s official. Omniture completed its acquisition of Visual Sciences yesterday in just under three months – record time by anyone’s watch.

Here are some notable changes:

• Omniture Discover OnPremise will utilize the Visual Sciences Platform 5 technology and page tags from VS can populate SiteCatalyst data, which will appear in the integrated interface. Omniture will maintain its legacy Omniture Discover (hosted) segmentation solution.

• Omniture’s Search Center now appears under the header of Site Search and Content, where they wasted no time in incorporating Visual Sciences’ Publish Web Content Management Solution.

• The popular HBX Analytics solution will be rebranded as Omniture SiteCatalyst HBX. Although HBX should be placed on an endangered species list, because the product will likely be phased out. Omniture states that HBX, “will continue to be supported until the key features have been integrated into Omniture SiteCatalyst”. HBX has had a long ride, from Hitbox to WebSideStory’s HBX, to Visual Sciences’ HBX and now Omniture. It looks like it’s finally time to retire the jersey and move on.

Visual Sciences customers are being well cared for as Omniture will launch a Customer Welcome Program on January 22 which will include training and information to ease the transition.

Several senior management executives from Visual Sciences were appointed to lead the Discover OnPremise, HBX Migration, and Omniture Site Search & Publish product lines. Also announced was the departure of Visual Sciences CEO, Jim MacIntyre, who will pursue other interests after assisting in the transition and integration period.

Is WebTrends Next?

As I wrote in my previous post…this will get interesting…apparently sooner than later.

Several key executives from WebTrends were quietly relieved of duty yesterday, including Greg Drew (CEO) and Jason Palmer (VP Product Marketing). A visit to the management page of the WebTrends site this morning shows a new face – Bruce T. Coleman as Chief Executive Officer.

Coleman serves as CEO of El Salto Advisors, an interim executive firm, and held short-term executive posts at Vernier Networks (2004), Stamps.com (2000-2001), Rogue Wave Software (1999 – 2000) and Websense (1998 – 1999) foreshadowing a short stay with WebTrends and a likely sale of the company.

Many eyes will turn to Omniture as a prime suspect to buy WebTrends and dominate the analytics market because of their recent acquisition of Visual Sciences, but that deal is scheduled to complete sometime in mid 2008, so they may have their hands full at the moment. Certainly Coremetrics and Unica are keenly watching the consolidation of their peers, yet a new entrant to the marketplace, (i.e., Content Management Vendor), would create an interesting challenge for the analytics incumbents.

The Web Analytics World is Shrinking

The web analytics market just got a whole lot smaller with the news of Omniture’s intention to acquire Visual Sciences for $394 million. It was no secret that Visual Sciences was up for sale, yet speculators believed that a software goliath without a pre-existing analytics solution would enter the market with a quick pick-up of Visual Sciences. The convergence of these technologies will not happen overnight and integration may prove to be the lynchpin of this relationship.

Omniture’s acquisition strategy includes geographic expansion (Instadia), strategic technology additions (Touch Clarity and Offermatica) and domestic consolidation for financial leverage. This newest deal certainly strengthens the fulcrum for financial leverage and succeeds in enhancing the technology additions through the unique capabilities Visual Sciences brings to web analytics.

Considering Omniture’s expanding feature set of strategic technologies and its “Business Optimization” messaging, I question whether Omniture will become the marquee platform for digital marketers. Their analytics horsepower and growing internal capabilities notwithstanding, the burgeoning Genesis Network is seeding its alliances throughout the digital marketing technology landscape. As this evolving ecosystem takes shape, it will be interesting to witness conflicting forces of buy-in/rejection on the client side and dismissal/competition from vendors. Buckle up and stay tuned, because this will get interesting.

Omniture Acquires Offermatica

Thus Begins the Multivariate Testing Market Consolidation Phase

Web analytics provider Omniture announced today its plans to acquire multivariate testing company, Offermatica for $65 million in capital stock. The move comes as no surprise as the multivariate testing market grows in popularity and continues to demonstrate value in its ability to quantifiably deliver optimization. Omniture is poised for the acquisition and strategically building out their product set. Today’s news follows Omniture’s acquisition of Touch Clarity back in March of this year for its behavioral targeting capabilities. Omniture customers will now have the strength of a leading multivariate testing platform in its quiver of services.

Jupiter research shows that multivariate testing adoption is on the rise as 29% of executives recently said that they plan to deploy or upgrade their testing solutions within the next 12 months. This will add to the 20% of companies that currently use a multivariate testing application.

The importance of testing is so pronounced that folding this feature into a larger application like web analytics makes perfect sense. With only a few vendors providing multivariate testing to begin with, (i.e., Optimost, Sitespect, Widemile and Google Optimizer, to name a few), I expect that the market will continue to collapse and commoditize based on features. Yet, services will emerge as an essential component of an actionable testing strategy.