The most important discovery is that so few people ask whether the cost of advertising exceeds the return it produces. I believe this is a consequence of not understanding the differences between online and offline marketing.
In order to survive, a business needs to make a profit. This means it has to spend less than it earns. Less than half (46 percent) measure revenue as a result of advertising, and only half of these measure profit. In other words, most people (73 percent) don't know if their online advertising is costing or earning money.
This is one reason why PPC rates in Google are so absurdly high. Obviously we don't have the facts, but my personal experience is most companies are spending much more for their online ads than can be cost-justified.
You should know whether you're making a profit or not. If you're making a loss but not doing anything to reduce it, you should be able to explain why that's OK.
By understanding how web analytics can report global key business performance indicators, companies will be better able to balance what is desired for the company with what is realistic, feasible and most effective for their specific audiences.
Though changing the name of web analytics may not be the solution, businesses must realize that web analytics is more than just data for the sake of data, and more than just a way to optimize a website. It is a valuable tool in shaping overall business objectives.
