SEL: Google Acquires Web Analytics Firm Urchin

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March 29, 2005

Google Acquires Web Analytics Firm Urchin

Google has announced the acquisition of Urchin Software Corporation, a San Diego, California based web analytics company.

From the press release...

Google plans to make these tools available to web site owners and marketers to better enable them to increase their advertising return on investment and make their web sites more effective.

"We want to provide web site owners and marketers with the information they need to optimize their users' experience and generate a higher return-on-investment from their advertising spending," said Jonathan Rosenberg, vice president of product management, Google. "This technology will be a valuable addition to Google's suite of advertising and publishing products."

As Google stated, the main reason for this acquisition is to be able to provide AdWords advertisers with data that demonstrates the ROI of their ads, and encourage them to spend more with Google.

But what about this idea? I wouldn't be surprised if this were a step closer to offering a performance-based pricing model. With the tracking offered by Urchin, Google could move towards a product that only charges an advertiser when a transaction is completed.

I'll stick my neck out and say that we'll see some type of performance model by the end of the year.

Terms of the deal were not announced but Battelle has word that Urchin was bought for $30 million.

Andy Beal | permalink | +marktd |

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