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Why web Analytics Companies may have a leg up on Advertising Technology Companies

by Scott Hoffman on September 21, 2010

Last week, I posted “Are Web Analytics Companies on a Collision Course with Ad Technology Companies?” about what I saw what an oncoming battle between advertising technology companies and web analytics companies. My good friend Jonathan Mendez, who write a great blog Optimize and Prophesize, immediately tweeted in response to my headline:

Jon answered “More like passing on the Right…” Jon may be very right – and here is why:

Web Analytics companies have a leg up on the Ad Technology companies because they have access to a very specific and unique segment of data. That data/information is about the visitors of the websites of their clients and how those visitors interact with websites. In my humble opinion, that it the single most valuable piece of data…understanding how a user interacted with their site can lead to a richer and more personalized experience.

Clients that these web analytics companies work with include car companies, airlines, hotels, banks, retailers, non-profits and politicians. If they can learn more about their customer, then they can personalize an experience, even a marketing experience, for that customer. Consumers are already expecting this high level of service, and that it’s all about the product, service, and experience that you would prefer. With user data about the way they interact with the site readily available, the power to personalize things is much greater, and personalization is a key enhancement that can be applied to a website that increases effectiveness.

This client side data is not available in the open marketplace, and most websites have taken a less than favorable stance on sharing that information with Advertising Technology companies. The lack of user interaction data leaves Advertising Technology companies at a disadvantage vs. Web Analytics companies that already collect the data, and are presumably trusted with that data.

It will be interesting to watch this battle form up in the next few months – who will be the winners and losers? IBM continues to make moves in the space with their latest being an acquisition

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