March 30, 2005 -- (WEB HOST INDUSTRY REVIEW) --The battle in the search space got a little bit hotter Monday, with Google (google.com) announcing it had acquired Web analytics software developer Urchin Software Corporation (urchin.com) for an undisclosed sum.
San Diego-based Urchin develops real-time Web analytics and statistical software that customers use to track the performance of their Web sites. The services are available as a hosted service or a separate software product. Many users of Urchin however, have access to the technology through their Web hosting providers free of charge.
Urchin has been making analytics software since 1995 and first began partnering with Web hosting providers in 1999 when it signed on EarthLink. Since then, Urchin's software has been deployed widespread across the hosting industry and the company counts most of the largest Web hosts in the world amongst its customers.
A spokesperson for Google told theWHIR that the company expects Urchin's technology to be a valuable addition to its advertising and publishing offerings. Google says it will make Urchin's capabilities available to Web site owners and marketers, with the intention of providing them with the statistical and empirical data they need to optimize user experience and generate higher rates of return on their advertising spending.
Neither Google or Urchin would provide any further specific details.
Analysts speculate that the addition of Urchin's Web analytics technology is a move designed to bolster Google's pay-per-click advertising offerings, which generate most of the company's revenues. Many Web site operators already use Urchin to help understand the performance of their Google PPC ads. And with the price of these ads climbing steadily, advertisers will naturally want access to data that enables them to assess the degree to which their ads are converting. Only with a more accurate picture of success or failure, it is believed, can advertisers justify the paying higher prices.
Google and search rival Yahoo! both offer free conversion tracking tools to their online advertisers. Yahoo! acquired its own analytics technology back in 2003 with its purchase of Keylime. With Urchin under its umbrella, Google would be able to provide a much more sophisticated set of analytical tools for its advertising clientele.
In January, Urchin introduced the latest version of its technology, Urchin On Demand 6.1.1. The update features several advanced tools that can provide users with in-depth and detailed analysis of advertising campaigns. For example, Urchin expanded the cross-segment controls, enabling users to generate reports that account for any number of data segments, or for variables they have defined themselves. Another new feature is lifetime campaign value analysis, which enables users to look at their advertising campaigns from the long-term perspective of the entire sales cycle and accounts for repeat buyer data. Enhanced geographical tracking was also integrated into 6.1.1.
Neither Google nor Urchin would comment on staff or branding arrangements. The acquisition, subject to customary regulatory approvals, is expected to close before the end of April. A blog post by search engine expert John Battelle, citing an anonymous source, said the transaction was believed to be worth $30 million.
