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  • Writer's pictureHigor Barbosa

Innovations and Challenges in the Online Data Measurement Revolution


At the forefront of the digital revolution, effectiveness in data collection and interpretation has become a crucial element for the success of online businesses. Considering this landscape, Google has introduced a new version of its analytics product, Google Analytics 4 (GA4), promising to revolutionize how companies measure and optimize their strategies in the online environment.

Nevertheless, while GA4 represents a paradigm shift by unifying data measurement for websites and applications, it is essential to examine not only its innovations but also the challenges and counterpoints it presents. In this article, we will not only highlight the distinctive features of GA4 but also explore potential challenges, providing a balanced perspective to guide companies in adopting this new generation of analytical tools for data measurement.

What is Google Analytics 4, and how does it differ from Universal Analytics? Google Analytics 4 is the evolution of Google Analytics for Firebase, which was the version of Google Analytics tailored for mobile applications. In this way, GA4 can unify data measurement for both websites and applications on a single platform, enabling companies to have a more integrated and holistic view of user behavior across different devices and channels.

However, it is important to emphasize that the new tool differs from Universal Analytics, the previous version of Google Analytics, in various aspects related to the way it collects and organizes data. For example, while UA was based on sessions and interactions, GA4 relies on events and parameters, making the new tool more flexible and customizable for companies to capture and analyze more relevant and specific insights according to their goals.

Furthermore, GA4 offers advanced features not available in Universal Analytics, such as integration with Google's media platforms, such as Google Ads and YouTube, and predictive features that use artificial intelligence to predict the future behavior of users and suggest actions to improve performance.


What are the main features of GA4? GA4 has several features that make it a more modern and powerful data analytics platform. Some of these include:

--> Event-based data collection: GA4 allows companies to define and track custom events in addition to the automatic events offered by Google. These events represent user actions on a website or application, such as clicking a button, adding a product to the cart, or making a purchase.

--> Predictive capabilities: GA4 utilizes artificial intelligence to analyze collected data and generate insights into users' future behavior. For instance, GA4 can estimate the likelihood of a user purchasing a product, canceling a subscription, or abandoning a cart. With these insights, companies can effectively segment and engage users by offering personalized deals, targeted messages, or conversion incentives.

--> Integration with media platforms: GA4 seamlessly integrates with major Google media platforms like Google Ads and YouTube, allowing companies to create and manage online marketing campaigns based on GA4 data. This enables the use of GA4's predictive features to create remarketing lists on Google Ads, targeting users with a higher likelihood of making a purchase or becoming loyal customers. Additionally, companies can measure the return on investment (ROI) of their media campaigns by comparing costs and outcomes across different channels and platforms.

--> Privacy controls: GA4 provides privacy controls for both companies and users, enabling them to manage the data collected and shared with Google. Companies have the option to configure GA4 to collect data without cookies or user identifiers, using behavioral modeling to fill data gaps.

Why is GA4 important for the future of data measurement? Like any other tool, Google Analytics 4 is a crucial player in the future of data measurement. Representing a paradigm shift in how companies collect, analyze, and use data to make online decisions, GA4 is more than a simple upgrade from its previous version; it is a new platform that offers greater flexibility, customization, integration, and intelligence for businesses.

In the competitive market, Google Analytics 4 is essential for e-commerce companies that rely on data to understand and meet the needs and expectations of customers. With GA4, e-commerce businesses can:

Gain a more integrated and holistic view of user behavior across different devices and channels, allowing them to track the customer journey from the first interaction to purchase and loyalty.


• Collect more granular and relevant data for their businesses, defining and tracking custom events that reflect their goals and success indicators.


Generate insights into future user behavior, estimating the likelihood of a user purchasing a product, canceling a subscription, or abandoning a cart, and suggesting actions to improve performance.


• Create and manage online marketing campaigns based on GA4 data, utilizing integrated media platforms such as Google Ads and YouTube, and targeting and engaging users with higher conversion potential.


Challenges, Implications, and Alternatives for E-commerce

While GA4 brings improvements in terms of flexibility, customization, and predictive capabilities, many users have expressed dissatisfaction due to changes in the user interface, reports, and analyses compared to the previous version, Universal Analytics (UA). These changes can impact the performance and competitiveness of e-commerce companies, which rely on reliable and relevant data for strategic and operational decision-making.


Some of the main challenges presented by GA4 are:


1. Possible loss of historical data and comparability between UA and GA4: Due to differences in how users, sessions, conversions, and other metrics are measured and defined, there may be challenges in assessing the return on investment (ROI) of marketing campaigns and conversion optimization strategies.


2. Reduced flexibility and customization of reports and analyses: GA4 relies more on predefined models and recommendations, limiting creativity and depth in data interpretation, thereby reducing user autonomy and independence.


3. Increased dependence on Google technology and its privacy policy: This dependence can impact the reliability and transparency of data collected and processed by GA4, posing risks of data breaches, loss of control and ownership of data, and restrictions on data access and usage.


A possible solution to these challenges is to explore alternative options and supplements to Google Analytics 4, such as third-party data analysis tools. These tools may offer more features, greater control, and better integration with other e-commerce platforms. Some tools that may be of interest to e-commerce companies include:

Matomo: A data analytics platform that prioritizes user privacy and security by allowing data storage and control on a self-hosted server or in the cloud. The tool includes features such as event tracking, user segmentation, conversion funnels, and heatmaps to record interactions from new visitors.


Piwik PRO: A data analytics solution that combines user privacy with ease of use and customizable reporting. Piwik PRO enables the integration of data from various sources, including websites, applications, CRM, email, and social networks.


Adobe Analytics: A data analytics tool that provides more features and complexity compared to GA4, including extended data retention, advanced campaign tracking mechanisms, predictive and prescriptive analytics, and integration with other Adobe solutions.


All these tools offer greater customization and flexibility in reporting and analysis, enhanced data retention and control, and increased compatibility and diversity of data sources. However, it's important to note that, like Google Analytics 4, no platform is perfect or exhaustive. Each has its own advantages and disadvantages.


Conclusion

As we navigate the complexity of the next generation of analytical tools, Google Analytics 4 (GA4) stands out as an innovative and bold response to the growing demand for deeper and more personalized insights in the online environment.


However, it's important to make it clear: the future of data measurement doesn't solely depend on choosing the most advanced tool but rather on each company's ability to adapt and make informed strategic decisions. Every business is unique, and success lies in the ability to navigate the available options while staying focused on specific needs and the ongoing quest for insights that drive growth in the online market.


Embark on the transformation of your online data with Vurdere!

Click here to start a conversation with us and discover how we can enhance your data analysis strategy, shaping a more promising future for your business.

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