Digital Analytics: Demystifying the Fabulous World of Digital Metrics

Web Analytics, Digital Marketing Analytics, Online Analytics, Business Intelligence, Big Data, Google Analytics… There are so many names and wild mixtures that it's hard to actually understand what is, or isn't, part of the digital metrics universe.

To clear up this mess and help simplify the concept—especially to show that it goes far beyond tools—I adapted this article in which I share the following topics with you:

  1. Digital Analytics in 140 characters
  2. Is Digital Analytics the same as using Google Analytics?
  3. Is Digital Analytics the same as Web Analytics?
  4. And Business Intelligence / BI, is it Digital Analytics?
  5. Can I just call it Analytics?
  6. Straight to the point: what is Digital Analytics?
  7. Applications of Digital Analytics
  8. Bonus: how to get started
  9. References

1. Digital Analytics in 140 characters

"Using data for the recurring optimization of your users' online experience."

Online experience can be selling, using an app, posting on a social network, clicking on an ad, etc.

User can be a customer, an employee, a partner, etc.

In fact, Digital Analytics is nowhere near as daunting as it seems.

2. So is it the same as using Google Analytics?

No. Using Google Analytics for decision-making regarding improvements to your website is part of the scope of Digital Analytics, but it is only one of the possible applications of this highly powerful universe.

  • Analytics Maturity Model published in Twinkle Magazine

Explaining visually:

This is a model created by a renowned professional in the market, Stéphane Hamel, who was a director at one of the most prestigious consultancies in the segment, Cardinal Path.

The Online Analytics Maturity Model shows us that Digital (or Online) Analytics goes far beyond tools and technology. It also encompasses everything from team management to processes and methodologies. Therefore, Google Analytics is "just" one aspect of one of the ends of this chart.

This topic alone deserves a great post in the future, but I think you get the picture, right?

3. Is it the same as Web Analytics?

Web Analytics & Digital Analytics are synonyms, but we can say the latter is an improved version of the former, which has become very dated.

The term "Web" is closely linked to the WWW (World Wide Web) and consequently to the browser, but today we breathe mobility and Internet of Things (IoT), so it is only fair to expand from "Web" to "Digital".

This isn't something I'm pulling out of a hat; one of the largest associations in the market, the Digital Analytics Association (DAA), changed its former name "Web Analytics Association" (WAA) to the current one in 2012 for this very reason.

So, if you are more Old School and prefer to keep using the term Web Analytics, no problem. You probably used a ball mouse and a CRT monitor in your distant past and, just like me, might be a bit more attached to classic tech vocabulary.

4. And Business Intelligence / BI?

No. And yes.

I must confess it is a bit frustrating to see the blatant prostitution and buzzwordification of the term. Every new-century digital agency does, sells, and hires BI people: from BI analysts, BI interns, Business Intelligence managers, BI programmers...

Then you look at the job description, and it's to pull reports in Google Analytics, analyze media performance, or create beautiful, colorful Excel spreadsheets. It would be better to say the job is for Digital Analytics (or Online Analytics, or Web Analytics in the best ball-mouse style).

Frustrations aside, Business Intelligence is to the Solar System what Digital Analytics is to planet Earth (#LoveAnalytics). One is included in the other, but the former is monstrously larger.

“(…) a set of techniques and tools for the acquisition and transformation of raw data into meaningful and useful information for business analysis purposes”

This is the "Tweet" on Wikipedia about Business Intelligence, and if you have a few minutes of patience, you will see that BI is broader, more complex, and more robust than our beloved, fit Digital Analytics. But that doesn't make the latter any less interesting, even if we don't get to talk here about Ralph Kimball or William Inmon, the two biggest references on the subject... so let's keep using our magnifying glass to analyze our blue planet of metrics.

[rant ON] Just so we don't break the habit: using Google Analytics to generate performance reports for your website and saying you do BI would be like designing a business card for your uncle's company (yes, you are the nephew) and telling your friends that you do strategic planning and development for communication and advertising. [/rant OFF]

And Big Data?

You can practice Digital Analytics and Big Data at the same time, since the latter refers to an elephantine amount of data. Or would it be blue-whale-esque?

Transcending the biology of it, Big Data, which has become another buzzword, is linked to everything from the collection to the extraction of data from a truly monstrous volume of data, with the aim of making discoveries (a.k.a. generating insights). Therefore, Big Data is applicable within the scope of both Digital Analytics and Business Intelligence.
Understand this process better by following this link.

5. Can I just call it Analytics?

You bet you can. You should. It's a short name, and it's trendy too. I would dare to say that "Analytics" is sexy. What I've noticed is that it has become chic, cool, trendy, and is constantly gaining new prefixes.

See if you've run into any of these:

  • Digital Marketing Analytics
  • Startup Analytics
  • Online Business Analytics
  • eCommerce Analytics
  • App Analytics

Just using it makes things look better, right? #AnalyticsYouBeauty

And the meaning is the same for everything, but it is already segmented into its proper context:

"Using data to optimize your users' online experience [in the App / in Ecommerce / in the Startup / etc…]"

6. After all, straight to the point, what is Digital Analytics all about?

Now let's get to the more theoretical part of the text, just to make it a bit more serious:

We learned earlier that

Digital Analytics has a bunch of crazy names, and most of the time you can choose what to call it, but please do not use the term BI to refer to tasks like generating reports in GA, or claiming that the CTR slipped away from the CPC which was framed by the CPA.

And now we are going to learn that

In a very objective way, Digital Analytics comprises a set of techniques, processes, and methodologies aimed at using data in digital environments for recurring optimization and (better) decision-making, covering at least 3 areas or stages:

  • Data collection (Data Capture): tools, data storage, integrity, technical implementations, modeling, etc.
  • Data visualization (Data Reporting): reports, dashboards, monitoring, alerts, etc.
  • Data analysis (Data Analysis): generating insights, creating action and optimization plans, building a knowledge base, learning, etc.

Avinash Kaushik

in his book Digital Analytics 2.0

"Digital analytics is the analysis of qualitative and quantitative data from your business and the competition to drive a continual improvement of the online experience that your customers and potential customers have which translates to your desired outcomes (both online and offline)"

In a free and casual translation, it would be something like "Digital Analytics is the analysis of quantitative and qualitative data from your business and competitors aimed at the continuous improvement of the experience of your customers and potential customers, which translates into your desired return (both online and offline).

And we close this theoretical part with one more definition:

Digital Analytics Association

What is Digital Analytics?
"The science of analysis using data to understand historical patterns with an eye to improving performance and predicting the future. The analysis of digital data refers to information collected in interactive channels (online, mobile, social, etc.). Digital Analytics has become an integral part of core business strategies and maintaining a competitive edge. Digital data started the Big Data meme as it heralded the onslaught of Volume, Variety and Velocity, opening the door to new types of correlative discovery much wider. Digital Analytics is a moving target of innovation and exploration. That’s what makes it fascinating."

Truly fascinating!

[Lazy Mode ON] Link to Google Translate

7. How about demonstrating some applications?

  • Example of Dashboard posted by ∆ Studio–JQ ∆ on Dribble

We will explore this deeper in other posts, but to make it easy to connect the dots, here are some examples of Digital Analytics applications:

  • Develop dashboards (metrics panels).
  • Generate media performance reports.
  • Implement analytics tools using market best practices.
  • Plan and define key performance indicators (KPIs) for your website or campaign.
  • Integrate different data sources into a Data Warehouse.
  • Use collected data to create new digital communication plans.
  • Create and plan A/B tests, defining success metrics.
  • Build a knowledge base of your user's browsing behavior.
  • Develop automations (emails, personalized content, lead forms, etc.) based on this same browsing behavior.
  • Create audiences and audience segments for Remarketing.
  • And the list goes on…

You must have noticed that several items above are tactics or actions of Digital Marketing, Inbound Marketing, and/or Growth Hacking. There's no way around it, they are all related, connected in this delicious [heavily censored term], capisce?

In the end, it works more or less like this: you can practice digital marketing or inbound without even looking at Digital Analytics (shame on you). But most of the time, the practice of Digital Analytics will always be associated with other topics. Without a doubt, great company!

8. **Bonus — How to get started?

Taking advantage of the whole new wave of Inbound & Product Launch Formula, I will slyly share 2 bonuses with you:\

a. Official Google Course

If you are not practicing any Digital Analytics activities today, or if you already are but want to deepen your knowledge, my gold-star recommendation is always the same: start with Google's official course, Digital Analytics Fundamentals.

It's free. It's top-notch. It's online and, for those who prefer, has Portuguese subtitles. But don't get used to translations, as most Digital Analytics content on the web is in English.

b. Digital Analytics Maturity Assessment

  • Example of Report from the DigitalAnalyticsMaturity.org Tool

Another freebie, but this time, if you don't feel comfortable reading in English, don't even try.

This is a free self-assessment tool for the Analytics maturity model mentioned earlier.

I humbly hope this article has contributed a little more to your journey toward Analytical nirvana.

Have suggestions and references? Tons of compliments? Volcanic criticism? Leave your comment!


"Thank you very much and see you next time!
May the Analytics be with you!!!"

9. References

To develop this text, I used the legally swiped and properly credited references: