It’s late 2005, and web analytics used to be divided into two camps: cheap, basic counters (like the "hit counters" from the 90s) or incredibly expensive enterprise log analyzers like Urchin, which could cost $500 a month or more.
Google acquired Urchin earlier this year, and today they’ve relaunched it as Google Analytics. The price? Zero.
Client-Side Tracking
Most old-school analytics tools worked by parsing your web server’s log files. Google Analytics uses a different approach: a small snippet of JavaScript that you include on every page.
// The tracking code that's going to be everywhere
<script src="http://www.google-analytics.com/urchin.js" type="text/javascript"></script>
<script type="text/javascript">
_uacct = "UA-12345-1";
urchinTracker();
</script>
This client-side approach allows Google to capture things that server logs can't, like screen resolution, browser plugins, and even how long someone spent on a page without making another request to the server.
The Dashboard
The interface is a revelation. Instead of dry tables of data, you get beautiful graphs, "top content" lists, and even a map showing where your visitors are coming from. For the first time, small businesses can have the same data-driven insights as the big guys.
The Catch
Of course, the "catch" is that you’re giving Google all your traffic data. They are building a massive database of how the entire web is used. For some, this is a privacy concern. For others, it’s a fair trade for such a powerful tool.
Looking Ahead
Google Analytics is going to commoditize the web analytics industry. Many of the smaller players will disappear. For web developers, "installing GA" is about to become a standard part of every project launch. We’re moving into an era where "gut feeling" is no longer enough; we need to back it up with data.
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