Google Analytics Adds Unnormalized Benchmarking Data
▼ Summary
– Google Analytics has expanded its Benchmarking feature to include 20 new unnormalized metrics like New Users and Total Revenue for industry comparisons.
– Benchmark ranges are estimated by multiplying a peer group’s normalized metric by your property’s active user count to account for traffic differences.
– Benchmarks are displayed as percentiles (25th, median, 75th) to show performance ranges based on industry peer groups.
– Data is encrypted, aggregated, refreshed daily, and only available when sufficient peers qualify to ensure privacy and relevance.
– This enhancement allows businesses to compare raw performance against competitors and identify areas for improvement in acquisition, engagement, or monetization.
Businesses now have a powerful new way to measure their digital performance against competitors, thanks to Google Analytics expanding its Benchmarking feature. The platform has introduced twenty new unnormalized metrics, including critical data points like New Users and Total Revenue. This enhancement allows companies to move beyond simple ratios and see how their actual numbers compare within their industry.
The system calculates these absolute benchmark ranges by taking a peer group’s normalized metric and multiplying it by your own property’s active user count. For instance, to determine the benchmark for Engaged Sessions, the formula would be: the peer group’s engaged sessions per active user multiplied by your total active users. This method ensures that comparisons remain fair, even between businesses with different audience sizes.
Benchmark data is presented using percentiles, specifically the 25th percentile, the median, and the 75th percentile, to provide a clear view of performance ranges. Peer groups are automatically formed based on industry categories, using setup information and property signals to ensure relevant comparisons. All shared data is encrypted and aggregated to protect individual privacy, with updates occurring every twenty-four hours. It’s important to note that benchmark reports only appear when a sufficient number of comparable properties are available in the dataset.
Previously, the benchmarking tool was restricted to normalized data, which included percentages and ratios. The addition of absolute numbers is a significant step forward. Marketers can now evaluate their raw performance figures directly against those of their competitors, while the estimation model still intelligently accounts for variations in website traffic.
This broader set of benchmarks empowers businesses to look past superficial vanity metrics. They can pinpoint genuine strengths, identify underperforming areas, and develop precise strategies for improvement. Whether the goal is to enhance user acquisition, increase engagement rates, or boost revenue generation, these insights provide a clear direction for action.
Ultimately, Google Analytics is delivering a more realistic and equitable method for competitive analysis. Marketers can definitively assess whether they are falling behind, leading the pack, or simply keeping pace with others in their field. This tool transforms guesswork into data-driven strategy.
(Source: Search Engine Land)
