Rationale - Market Background

E-consultancy estimates that the value of paid search alone will near the £2bn mark this year, reaching around £1.97bn, up 56% from 2006. [Source: E-consultancy’s 2007 Search Engine Marketing Buyer's Guide, August 2007]

UK spending on Search Engine Marketing will increase 58% this year to £2.22bn - and although that growth rate is down from 65% in 2006, the market still looks to have plenty of room for growth in the future.  For the first time, spending on organic search will grow more quickly, increasing 68% to £252m. Our estimate includes payments to agencies, as well as investment in client-side staff to manage SEO and implement changes. 
 
With the value of sales generated by direct marketing running at £125billion, and of this total online sales via the internet reaching £52billion (source: DMA Economic Impact Analysis 2006), Adestra estimates email marketing to generate around 10%, or £5billion worth, of sales (source: The E-consultancy/Adestra Email Marketing Industry Census March 2008). Estimated spending on usability and accessibility by UK firms is upwards of £180m this year and the value of the UK market for e-commerce technology is expected to exceed £400m over the next 12 months.

Organisations know that Web users are predominantly visitors, not customers, and that only approximately 3% of these visitors actually buy anything. Many companies are therefore turning to Web analytics services, such as Mtracking, to enable them to understand their visitors in a way that will help them convert the passing user to registered user, or browser to buyer.

Many customers are well versed in analytical technologies. Some have embraced Customer Relationship Management (CRM) systems and are proficient at calculating, for example, lifetime customer value and revenue per customer. But understanding clickstream data requires a fundamentally different set of procedures than those associated with analysing data from CRM systems. With this in mind, the contrasting data collection methods used by Mtracking are designed to be powerful yet easy to manage and make data retrieval much faster.

Recognising that the analysis of visitor behaviour goes hand in hand with CRM, Mtracking have developed their top level product, Mtracking Enterprise, to integrate with other databases (such as members, subscribers, shoppers) and which link directly to CRM applications.

For more information on the suite of Mtracking products click here to go to the Products section.