July 23, 2009

The Forrester Wave™:

Web Analytics, Q3 2009
by John Lovett
for Customer Intelligence Professionals

Making Leaders Successful Every Day

For Customer Intelligence Professionals
Includes a Forrester Wave™

July 23, 2009

The Forrester Wave™: Web Analytics, Q3 2009
Omniture, Coremetrics, Unica, And Webtrends Lead, With Nedstat Close
by John Lovett
with Carlton A. Doty, Jennifer Joseph McGann, and Emily Murphy

Exec uti v e S u m ma ry
In Forrester’s evaluation of eight Web analytics vendors, we reviewed 105 criteria that exposed a tight
Leader board because of each vendor’s ability to process copious amounts of data and offer robust
customization capabilities. Leaders in this field include US companies Omniture, Coremetrics, Unica,
and Webtrends, with Netherlands-based Nedstat holding its own. Google Analytics advanced to Strong
Performer with demonstrated capabilities for the enterprise market, and AT Internet and Yahoo! Web
Analytics ranked as Contenders. Through this detailed evaluation and report, we seek to identify Web
analytics solutions that meet the needs of large enterprises as they grow, mature, and plan their evolving
Web analytics strategies.

ta ble o f Co nte nts NOT E S & R E S OUR CE S

2 Web Analytics Is The Decisive Tool For Online Forrester conducted executive interviews and
Customer Intelligence product demonstrations in June 2009 and
Data Quality And Flexibility Guide Vendor interviewed 96 user companies.
Selection
3 Web Analytics Evaluation Overview
Related Research Documents
“US Web Analytics Forecast, 2008 To 2014”
Evaluation Criteria Target Enterprise Client May 27, 2009
Needs
“What’s Your Web Data Integration Strategy?”
Evaluated Vendors Have Established Market
February 19, 2009
Viability And Customer Success
5 Our Analysis Revealed A Highly Competitive “The Forrester Wave™: Web Analytics, Q3 2007”
Race With A Photo Finish September 11, 2007
6 Vendor Profiles
Leaders
Strong Performers
Contenders
9 Supplemental Material

© 2009, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Information is based on best available
resources. Opinions reflect judgment at the time and are subject to change. Forrester®, Technographics®, Forrester Wave, RoleView, TechRadar,
and Total Economic Impact are trademarks of Forrester Research, Inc. All other trademarks are the property of their respective companies. To
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2 The Forrester Wave™: Web Analytics, Q3 2009
For Customer Intelligence Professionals

Web Analytics is The Decisive Tool for online customer intelligence

Forrester’s recent US Web analytics forecast revealed that 73% of businesses surveyed are currently
using Web analytics measurement technologies, and growth is expected to scale at 17% annually
over the next five years.1 These adoption metrics illustrate that Web analytics has become ubiquitous
among enterprises doing business online. In fact, Web analytics is the de facto standard by which
digital marketing performance is evaluated. While the majority of the market is still catching up
in this regard, Web analytics technologies have the potential to propel enterprises beyond mere
measurement to automated actions triggered by the data collected. Leading venders are facilitating
this capability by evolving their Web analytics platforms to collect Web data and to support the
confluence of multiple data sources for integrated analysis.

Data Quality And Flexibility Guide Vendor Selection

Throughout this study, Forrester surveyed nearly 100 vendor reference clients to determine what
features and functions they demand from their Web analytics providers (see Figure 1). These
findings revealed the following about Web analytics users:

· Data quality is vital. While there is nothing new about the need for accurate data, the visibility
of Web analytics metrics is increasing within many large enterprises as marketing dollars shift
from traditional to digital media. Nearly half of all Web analytics clients surveyed reported
this as a top concern. Leading vendors mitigate apprehension over data accuracy by offering
numerous tools to validate quality such as implementation testing and ongoing tag maintenance
via self-service tools.

· Unique business needs require special attention. Overall, 91% of reference clients surveyed
have worked with more than one Web analytics vendor in their careers. Among these seasoned
practitioners, 65% report that their current vendor’s responsiveness to their needs is better than
other vendors they have worked with in the past. This data indicates that while clients may be
demanding in their desire to customize Web analytics solutions to meet their unique business
requirements, for nearly two-thirds of them, vendors are succeeding.

· Flexibility breeds happy vendor relationships. Flexibility aligns closely with the ability to
service unique business needs, and it surfaced as an area of importance in several places
throughout our research. Flexibility in reporting is a top consideration factor, yet for 48%
of clients surveyed, flexibility of the application was the leading reason why they originally
selected their primary Web analytics provider. Vendors deliver flexibility through customization
of variables, metrics, and reports, as well as providing multiple options for data collection,
integration, and analysis.

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 The Forrester Wave™: Web Analytics, Q3 2009 3
For Customer Intelligence Professionals

Figure 1 Consideration Factors For Web Analytics Vendor Selection

“Which of the following are the three most important factors when selecting a
Web analytics vendor or application?”
Accuracy of information 49%
Ability to service my business needs 49%
Flexibility of reporting options 46%
Total cost of ownership 26%
Standard features and functionality 21%
Training and services supporting offering 21%
User interface 20%
Data collection method 17%
Ease of integration with other data types 15%
Real-time reporting 14%
Ability to measure new media 7%
Thought leadership 4%
Reputation of company 2%
Referencing customers 1%
Other 5%
Base: 97 Web analytics reference clients
(multiple responses accepted)
Source: Q2 2009 Global Web Analytics Forrester Wave™ Customer Online Survey
Source: Forrester Research, Inc.

Web Analytics Evaluation Overview

To assess the state of the Web analytics market and see how the vendors stack up against each other,
Forrester evaluated the strengths and weaknesses of top Web analytics vendors.

Evaluation Criteria Target Enterprise Client Needs

After examining past research, user need assessments, and vendor and expert interviews, we
developed a comprehensive set of evaluation criteria. We evaluated vendors against 105 criteria,
which we grouped into three high-level buckets:

· Current offering. To assess product strength, we evaluated each vendor’s Web analytics solution
along five dimensions: data handling; metrics, dimensions, and correlations; reporting and
analysis; integration; and service and support. To align with client needs, we paid particular
attention to the flexibility of reporting and analysis functionality.

· Strategy. We compared product and go-to-market strategies of each vendor in the context
of Forrester’s forward-looking vision for the enterprise Web analytics market to ascertain its
propensity for future success. We also incorporated quantitative client feedback as a measure of
strength as indicated by client satisfaction.

© 2009, Forrester Research, Inc. Reproduction Prohibited July 23, 2009

4 The Forrester Wave™: Web Analytics, Q3 2009
For Customer Intelligence Professionals

· Market presence. To benchmark the relative size of each vendor’s Web analytics business, we
evaluated financial positioning, revenue growth from Web analytics, new customer momentum,
and the overall proportion of enterprise clients against the total client base.

Evaluated Vendors Have Established Market Viability And Customer Success

Forrester included eight vendors in the assessment: AT Internet, Coremetrics, Google Analytics,
Nedstat, Omniture, Unica, Webtrends, and Yahoo! Web Analytics. Collectively, these vendors
measure visitor activity across the vast majority of the most heavily trafficked sites on the Web.
Forrester estimates that the Web analytics revenue generated by these companies comprises 99% of
global market share (see Figure 2). Each of these vendors has:

· Corporate revenues in excess of $10 million. While Web analytics is not the sole revenue
source for many vendors evaluated, Forrester reviewed firms that exhibit corporate
sustainability with more than $10 million in revenues.

· A significant base of enterprise-class clients. The Web analytics Forrester Wave™ is designed to
identify vendors that meet the demanding requirements of enterprise-class businesses. As such,
all vendors evaluated have capabilities appropriate for large enterprises and demonstrate this
capacity in the caliber of clients they serve.

Figure 2 Evaluated Vendors: Product Information And Selection Criteria

Product version Version

Vendor Product evaluated evaluated release date
AT Internet XiTi Analyzer II 7.5 September 2007

Coremetrics Coremetrics Analytics Coremetrics Analytics May 2009

2009

Google Google Analytics June 2009 November 2005

(frequently updated)

Nedstat Sitestat 7.40.0046 May 2009

Omniture Omniture SiteCatalyst 14.5 April 2009

Unica Unica Affinium NetInsight 7.6 February 2009

Webtrends Webtrends 8.7 March 2008

Yahoo! Yahoo! Web Analytics 9.5 April 2009

Vendor selection criteria

Are the corporate revenues in excess of $10 million?

Does the company have a significant base of enterprise-class clients?

Source: Forrester Research, Inc.

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 The Forrester Wave™: Web Analytics, Q3 2009 5
For Customer Intelligence Professionals

our Analysis Revealed A Highly Competitive Race With a Photo Finish

The evaluation uncovered a market in which (see Figure 3):

· Five vendors achieve Leader status by showcasing innovation and vision. Omniture,
Coremetrics, Unica, Webtrends, and Nedstat all demonstrate highly competitive capabilities,
making vendor selection challenging. These leading vendors offer the flexibility of near-limitless
customization and the ability to meet client needs on many levels. Yet while Leaders in the
category of Web analytics are narrowly separated, each demonstrates distinct strengths in areas
such as reporting and customization, as well as specialty areas such as funnel analysis, rich
media measurement, and multicampaign attribution. Further, each of these vendors views Web
analytics as a foundation for measurement across a wider array of marketing technologies.

· Google Analytics rises as the sole Strong Performer. Google Analytics debuted in our 2007
Web analytics evaluation as a Contender among a pack of Strong Performers. Since then, it has
significantly enhanced its enterprise capabilities with numerous product rollouts, such as the
ability to create custom reports, perform advanced segmentation, and visualize data using an
interface tool. Google Analytics also provides all this functionality for free.

· AT Internet and Yahoo! Web Analytics lack extensibility. Both AT Internet and Yahoo! Web
Analytics demonstrate strength in the sheer horsepower of their real-time data processing and
reporting capabilities. Yet Forrester believes that truly successful vendors in this category will
leverage their analytics platforms to support broader marketing functions through integration,
ancillary applications, and ultimately widespread dissemination of data.

Figure 3 Forrester Wave™: Web Analytics, Q3 ’09

Risky Strong
Bets Contenders Performers Leaders
Strong Omniture Market presence
Unica
Webtrends
Coremetrics Go online to download
Nedstat
the Forrester Wave tool
AT Internet
for more detailed product
Yahoo! Web evaluations, feature
Current Analytics Google comparisons, and
offering Analytics
customizable rankings.

Weak
Weak Strategy Strong

Source: Forrester Research, Inc.

© 2009, Forrester Research, Inc. Reproduction Prohibited July 23, 2009

6 The Forrester Wave™: Web Analytics, Q3 2009
For Customer Intelligence Professionals

Figure 3 Forrester Wave™: Web Analytics, Q3 ’09 (Cont.)

Coremetrics

Yahoo! Web
AT Internet

Webtrends
Weighting
Forrester’s

Omniture
Analytics

Analytics
Nedstat
Google

Unica
CURRENT OFFERING 50% 3.26 4.54 2.65 3.87 4.68 4.52 4.23 2.90
Data handling 20% 3.98 4.72 2.05 4.31 4.79 4.60 4.40 2.28
Metrics, dimensions, and correlations 15% 3.95 4.65 2.89 4.33 3.96 4.55 4.70 4.03
Reporting and analysis 35% 2.41 4.33 3.12 3.58 4.75 4.71 3.96 3.37
Integration 15% 3.45 5.00 2.55 4.00 4.75 4.70 4.40 2.60
Service and support 15% 3.40 4.20 2.20 3.40 5.00 3.80 4.00 1.80

STRATEGY 50% 2.04 4.63 3.13 3.31 4.52 4.12 4.18 2.06
Product strategy 40% 1.70 4.60 3.50 3.50 4.90 4.90 4.30 1.60
Corporate strategy 40% 2.40 4.60 3.20 3.40 4.80 3.80 4.00 2.40
Cost 0% 5.00 3.00 0.00 3.00 1.00 3.00 3.00 0.00
Reference client strength 20% 2.00 4.75 2.25 2.75 3.20 3.20 4.30 2.30

MARKET PRESENCE 0% 2.90 3.45 3.60 2.00 4.55 2.70 2.50 3.30
Company financials 40% 3.50 4.50 3.00 2.00 5.00 3.00 2.50 3.00
Installed base 60% 2.50 2.75 4.75 2.00 4.25 2.50 2.50 3.50

All scores are based on a scale of 0 (weak) to 5 (strong).

Source: Forrester Research, Inc.

This evaluation of the Web analytics market is intended to be a starting point only. We encourage
readers to view detailed product evaluations and adapt the criteria weightings to fit their individual
needs through the Forrester Wave Excel-based vendor comparison tool.

vENDOR PROFILES
Leaders
· Omniture. Omniture leads the Web analytics industry in its core data handling, reporting, and
analysis capabilities, as well as through its ever-growing set of ancillary marketing applications.
The company effectively doubled in size in 2008 through the acquisition of leading competitor
Visual Sciences, a move that also extended its ad hoc analysis offering substantially. While some
criticize its comparatively high pricing, Omniture excels by offering extensive customization
and deep drilldown access to multiple layers of data. Additionally, the product drives innovation
in rich media measurement by being first to market in areas such as native Flash tracking and
mobile application measurement. Omniture’s executive vision is to leverage Web analytics as
the platform for all marketing activities, and it is aggressively developing its suite of online
optimization products and services.

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 The Forrester Wave™: Web Analytics, Q3 2009 7
For Customer Intelligence Professionals

· Coremetrics. While Coremetrics is relatively small in total client count, it offers oversized
capabilities that include its ability to handle data efficiently, customize reporting and analysis,
and integrate with multiple marketing functions. This integration strategy is also a reflection of
the corporate vision to deliver a comprehensive suite of marketing and optimization products to
its customers. In addition to its deep customization options, Coremetrics also offers specialized
functions for vertical industries, allowing for tailored data collection, best-practice reporting,
and one of the industry’s only comparative benchmarks. The company demonstrates innovation
in multiple areas, including its advanced multicampaign attribution analysis that captures both
onsite activity and off-site impression contributions. Finally, Coremetrics clients expressed
satisfaction levels higher than any other company evaluated, with perfect marks in services,
responsiveness, and support, among others.

· Unica. The Unica Affinium NetInsight offering is one of the most flexible and customizable
offerings we evaluated. Unica enables these capabilities in part through its use of an open relational
database that extends beyond Web analytics to support its broad set of interactive marketing
solutions that acts as the conduit for offline data integration. NetInsight excels at reporting and
analysis, scoring perfect marks in the categories of scenario/funnel analysis, visitor segmentation,
and ad hoc analysis — all of which are offered through its standard pricing. Unica is demonstrating
its commitment to the Web analytics offering via product enhancements and deeper integrations
with its overarching set of marketing solutions. Because of its unique set of marketing capabilities,
the company is well positioned to infuse traditional campaign management with Web data,
thereby elevating enterprise marketing capabilities through holistic customer intelligence.

· Webtrends. Webtrends has undergone the biggest transformation of all vendors evaluated
in the past year, with the restructuring of its entire management team and refocused efforts
on Web analytics and its concept of openness. The result is a company united in delivering
leading enterprise-class capabilities, which it does with exemplary metrics, dimensions, and
correlations. The company scored high marks because of its ability to create unlimited custom
and calculated metrics, as well as the capacity to perform unlimited correlations. Reference
clients expressed high levels of satisfaction overall, with extreme satisfaction in responsiveness/
support, application reliability, and value. Webtrends continues to develop its extensibility
through expansion of data exchange, accessibility options, and a strong partner program.

· Nedstat. Nedstat maintains a stronghold on the European market with a substantial client
base and solid representation in that region. Yet Nedstat also offers enterprise functionality
that places it among the Leaders in the global industry. The company’s strengths emanate
from its ability to customize variables and metrics to meet diverse client needs, as well as
its segmentation and rich media measurement capabilities. While the company is tactically
pursuing a marketing application development strategy, the main focus of its executive vision is
to extend its Web analytics services into ancillary marketing application partners in categories
such as email and search marketing. It accomplishes this through the product architecture, its
integration platform, and a persistent focus in this area.

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8 The Forrester Wave™: Web Analytics, Q3 2009
For Customer Intelligence Professionals

Strong Performers
· Google Analytics. Google Analytics massively over-delivers on its cost-to-value ratio by
offering a free Web analytics solution with strong capabilities in segmentation, custom reporting,
and overall ease of use. While not suitable for everyone, these capabilities make Google
Analytics a compelling offering for many enterprise clients that currently employ this tool as
their primary Web analytics solution, as well as those that underutilize fee-based solutions or
want to minimize expenses on technology in favor of dedicating resources to in-house expertise.
Google demonstrates its commitment to the Web analytics product with substantial upgrades
on a regular basis and a dedication to support its most valuable customers by extending service
and support when applicable.

Contenders
· AT Internet. A new entrant to the Web analytics Forrester Wave, AT Internet is most
commonly known for its free offering, XiTi, yet the vendor augments that solution with
the fee-based offering evaluated here. The XiTi Analyzer II offers real-time data processing,
strong segmentation, and some customization capabilities for its clients. Despite a sound Web
analytics offering and several methods for data integration including a bidirectional application
programming interface (API), the strategy falls short of supporting ancillary marketing
functions to the extent of the industry leaders. AT Internet scored high marks in satisfaction
from clients in the category of services. The company is primarily focused on Europe as its
target market, with expansion plans for the Asia Pacific region. The company is not actively
pursuing opportunities in the US.

· Yahoo! Web Analytics. Yahoo! effectively turbocharged the analysis capabilities available to its
clients through the acquisition of the powerful IndexTools Web analytics solution in 2008. Since
then, Yahoo! Web Analytics is free for use by Yahoo! small business merchants and all clients
that are supported by a Yahoo! account team. This limited distribution strategy makes the tool
somewhat exclusive but provides the opportunity for Yahoo! Web Analytics to focus on the
core needs of its immediate client base. The product offering demonstrates strength in real-time
processing and the ability to drill down into data at a very granular level. Additionally, clients
can derive immense value through custom reports, detailed segments, and unlimited scenarios
for eCommerce and other forms of analysis. Development is currently underway for deeper
integrations within the Yahoo! infrastructure and ecosystem of services, yet this tool may be
restrictive for enterprises that require a more diversified offering.

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 The Forrester Wave™: Web Analytics, Q3 2009 9
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Supplemental MATERIAL
Online Resource
The online version of Figure 3 is an Excel-based vendor comparison tool that provides detailed
product evaluations and customizable rankings.

Data Sources Used In This Forrester Wave

Forrester used a combination of four data sources to assess the strengths and weaknesses of each
solution:

· Vendor surveys. Forrester surveyed vendors on their capabilities as they relate to the evaluation
criteria. Once we analyzed the completed vendor surveys, we conducted vendor calls where
necessary to gather details of vendor qualifications.

· Product demos. We asked vendors to conduct demonstrations of their product’s functionality. We

used findings from these product demos to validate details of each vendor’s product capabilities.

· Customer reference calls. To validate product and vendor qualifications, Forrester conducted
reference calls with three of each vendor’s current customers.

· Customer reference online survey. To establish a level of customer satisfaction across a number
of categories including flexibility, scalability, usability, services, responsiveness and support,
application reliability, and value, Forrester also conducted an online survey of a minimum of 10
of each vendor’s current customers.

The Forrester Wave Methodology

We conduct primary research to develop a list of vendors that meet our criteria to be evaluated
in this market. From that initial pool of vendors, we then narrow our final list. We choose these
vendors based on: 1) product fit; 2) customer success; and 3) Forrester client demand. We eliminate
vendors that have limited customer references and products that don’t fit the scope of our evaluation.

After examining past research, user need assessments, and vendor and expert interviews, we develop
the initial evaluation criteria. To evaluate the vendors and their products against our set of criteria, we
gather details of product qualifications through a combination of lab evaluations, questionnaires,
demos, and/or discussions with client references. We send evaluations to the vendors for their review,
and adjust the evaluations to provide the most accurate view of vendor offerings and strategies.

We set default weightings to reflect our analysis of the needs of large user companies — and/or
other scenarios as outlined in the Forrester Wave document — and then score the vendors based
on a clearly defined scale. These default weightings are intended only as a starting point, and we
encourage readers to adapt the weightings to fit their individual needs through the Excel-based

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10 The Forrester Wave™: Web Analytics, Q3 2009
For Customer Intelligence Professionals

tool. The final scores generate the graphical depiction of the market based on current offering,
strategy, and market presence. Forrester intends to update vendor evaluations regularly as product
capabilities and vendor strategies evolve.

Endnotes
1
For more information, see the May 27, 2009, “US Web Analytics Forecast, 2008 To 2014” report.

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