Tonight I went to the Web Analytics Wednesday, a regular event organized by Florian Pihs and sponsored by Web Analytics Demystified. Today’s event featured a panel discussion about the state of the web analytics in China, the panelist included Yong Wu, a Chinese Web Analytics entrepreneur, Laker Chan, CEO of SinoTech Search, Karen Ho, Digital Planning Director of OMD and Yang Zhou, Google Analytics Account Manager.
All the panelist agreed that the web analytics industry in China is still in its very early stage. Yong Wu thought that by percentage of revenue of Webtrends in China and in US, and the difference of price the clients would like to pay in two countries, we can know how early the industry is here in China. I have another example to share with you on current state of the market. In early this year, I helped a company to do some online campaign. We planned to buy ads on a niche vertical website, which ranks the first in Google and Baidu’s organic search result, but the website even don’t know how many traffic it has!
But they all believe that the industry is in very high growth. Karen Ho use the example of Häagen-Dazs to show that the situation has been improving a lot if compared with several years ago.
Why the market is so immature in China? Yang Zhou from Google Analytics team thinks that the website will pay more attention on ROI of online campaign when competition becomes more and more fierce. She said there was a small travel-related site in Hainan Province. Several years ago, no matter whatever the website did on online campaign, it can have very good ROI, so it didn’t care about web analytics. But recently, when the effects of online campaign become worse, ROI and web analytics become important, so it started to use Google Analytics.
Karen Ho added that in practice, ad agencies help to provide many analytics data to advertisers on ROI of the campaign. However, the data is not the most important factor to decide the online budgets, even if the ROI for a site is not good, they may still will put ads there. That’s also one of the reason why web analytics hasn’t gained enough attention in China.
By my experience, online startups, esp. ecommerce startups, have started to realize the importance of web analytics, but they just don’t have the knowledge and expertise in analyzing the data from those tracking tools. Web analytics service providers, such as Google Analytics, should have more workshops to help those startups to know more about how to using the tools better and how to benefit from the tools. Laker Chen believed that the market needs some system integrator, which should be business need oriented, and can integrate various products and services on the market to provide solutions to address the problems of the publishers/advertisers, because they don’t care about the tools, they care about the results and problem solving.
If you are interested in the development of web analytics sector in China and would like to know people in the industry, you should attend this monthly event.
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