Online Measurement And Tracking Tools

In business, opportunity is fueled by chaos. The Internet is no exception. Since the Internet's conception, research firms estimated that over 35 million domestic households have come online, with growth still strong. For Web site marketers and advertisers, understanding volume is crucial. For the former, it is an arrow in the quiver of self-promotion. By having a tangible way of measuring traffic, sites can prove their success and attract more advertisers. For the latter, this information is crucial to figuring out how many eyeballs their ads will reach. Of course, for software developers the opportunity is clear: provide the most efficient and cost-effective tool for measuring the Internet's ebb and flow.

From Moonshine to Fine Wine

When web sites made first attempts at recording the traffic that trickled through their revolving doors, the process was as inefficient as it was tedious. System administrators went through the time-consuming task of weeding through log files and manually counting the number of hits per page. Some sites improved on this method, developing their own home-brewed algorithms for measuring traffic. But, for the most part, the moonshine makers guide to online measurement left most site administrators with a hangover. Not only is brewing and maintenance costly and time consuming, it distracts administrators from more pressing tasks. As a result, a number of companies have evolved to provide sites with software and tools that automate the measurement process.

The Standard Dilemma

It seems difficult with today's Internet to watch the birth and growth of any new technology without encountering standards issues. Log file analysis companies are no exception. Until a standard is agreed upon, log analysis results are likely to vary greatly based on what approach a site chooses to endorse. As a result, methodology is open to criticism. There are currently two organizations, the Internet Advertising Bureau (lAB) and the Coalition for Advertising Supported Information and Entertainment (CASIE), working on standards, but issues remain:

• Cookies Debate Still Half-baked. Central to cookies, or digital tags on browsers that track a user, is a debate on privacy. Who should have access to a user's information? Online pubIishers? Marketers? Advertisers? The user? The Internet Engineering Task Force (IETF), a technology standards body for the Internet, recently advanced a set of guidelines advocating a stricter standard for cookies. But, what will users forfeit for the privilege of increased privacy?

• Naming the Nielsen of the Net. The race to become the Nielsen of the Internet is on. While there are a number of companies that have evolved to capture various segments of the measurement market, there has yet to be an accepted measurement standard as there is in other traditional forms of media, such as radio (Arbitron) and television (Nielsen). Until recently, the competition to see which will be the "Nielsen of the Net" was a one-horse race, with PC Meter as the only company out of the gate. However, the launch of RelevantKnowledge signals that the real competition has begun, and it remains to be seen if there is room for two ratings systems on the Web. Lessons learned from other media seem to indicate that there is no room for number two in the ratings game.

On the Horizon

Like every other form of media that preceded this one, measurement, as a promotional tool and business determinant, is paramount. To be competitive, larger sites will increasingly rely on ways to identify, retain, and increase their audiences. Before the measurement market can truly grow, however, some changes must take place. First and foremost, standards or bust. Also, cookie debates and technology issues still linger. But, given the need for measurement and the resulting activity in this space, the horizon promises resolution.