Culture

Business websites

.com

Brand protection

Online stores

Hosting

Data privacy

Policy-making

Registrars

Investing & reporting

Internet Basics Series

How to

People

Cybersecurity

Web trends

Tech news

Security

COVID-19

Technology detection

domains

Software

WordPress

TLDs

GDPR

Veronika Vilgis

How Google Analytics became the go-to tool

Google Analytics launched in 2005 and offered free statistics and insights into website traffic and user behavior. It quickly became the most used analytics tool on the web, taking over 50% of the market by 2007. There were several factors why Google Analytics managed to dominate the market in just a few years:

﻿Free and user-friendly: For small businesses with limited resources, Google Analytics provided an accessible way to gain insights into website traffic and user behavior.

Google Ads: Tracking the performance of Google Ads campaigns through Google Analytics made the service even more appealing. Marketers could see how ads translated into site visits and conversions.

Innovation: Google continually rolled out new features, reports, and integrations to provide more robust insights. Features like goal tracking, ecommerce tracking, and mobile app analytics were introduced over time.

Big data: Google Analytics leveraged Google's data infrastructure to offer large sample sizes, fast processing, and features like custom dimensions and metrics. 

﻿Decision-making: Google Analytics popularized a culture of data-informed digital marketing. Marketers were able to make decisions based on actual user behavior rather than hunches.

As you may have noticed, Google Analytics caters mostly to the needs of the marketers. The individual users whose data is used don't have a say about their data. That's where the GDPR comes in, putting the privacy and rights of the individual user at its core. But the GDPR clashes with Google's interests, resulting in quite some conflicts between Google and Europe and some of its individual countries.

Core conflicts between Google Analytics and GDPR compliance

To better understand the conflict, it's important to first see how the GDPR works and where it clashes with Google Analytics. There are three main points of conflict where the GDPR and Google Analytics clash:

Data Collection and Consent: Imagine someone walks into a store. GDPR basically says you can't just take their picture without asking for permission. Similarly, sites now need to ask visitors if they agree to gather some data about their visit.

Data Retention: The GDPR requires that personal data be kept for “no longer than is necessary.” Let's say you keep a diary of who visits your house. GDPR advises not to keep notes about a guest from 5 years ago, as that's no longer relevant. The same goes for web data; some experts even recommend not holding on to it for more than 2 years.

Data Transfer: Google Analytics data is stored in the U.S. (and other countries). But the GDPR prohibits transferring EU citizens' personal data to countries with inadequate data protection laws. It’s like if someone from Europe gave you a letter to keep safe, GDPR wants to ensure you don’t just store it anywhere else.

Under the GDPR, websites and apps must obtain explicit consent from users before collecting and processing their personal data. All three of the main points above must be clear to the website visitor. Failure to inform the visitor – or not adhering to other rules set in the GDPR – can result in hefty fines, running into the hundreds of millions.

Why Google Analytics currently isn't compliant

Achieving compliance with the GDPR while using Google Analytics requires carefully evaluating the terms of service and privacy policies. Among other things, you need to limit data collection and retention, properly obtain user consent, and avoid data transfers outside the EU. With some adjustments, Google Analytics can operate legally, but compliance ultimately depends on how website owners choose to implement and use the service.

Some critics argue that Google Analytics inherently collects more data than is necessary to fulfil its purpose. Additionally, users cannot opt out of data collection if they wish to use a website. This has led to numerous legal challenges for Google in Europe. 

Data protection authorities ban Google Analytics 

Some European countries have banned Google Analytics altogether to avoid potential GDPR violations. The bans began after a landmark ruling by Austria's data protection authority in late 2022, which was later followed by similar court decisions in other countries, including Italy and France. The rulings emphasized that Google Analytics did not comply with GDPR's requirements, as some or all data was transferred and stored in the U.S. At the time of writing, the U.S. isn't considered to be a safe country, as its privacy regulations aren't comparable to the more strict ones in Europe. Storing data there is therefore considered unlawful. 

(Non)compliance with these bans is difficult to identify and even more difficult to enforce. Although in July 2023, the Swedish authorities have issued the first fines for several major companies not complying with the ban. At Dataprovider.com, we scan the web on a monthly basis and gather diverse information from publicly accessible websites. So we can see if the ban in those countries has had any effect on the use of Google Analytics. We focused on Italian, French and Austrian websites as the ban was put in place there over a year ago. (After the ban in those countries, Google Analytics was banned in various other European countries too. But less than a year has passed since those bans, so we left them out of the equation for now.)

In total, we tracked 653,321 Italian, 900,876 French and 167,963 Austrian websites that had Google Analytics or Google Tag Manager installed before the announced ban. For Austria, we looked at data from January 2022. For France, we selected data from December 2021 and for Italy May 2022. We then checked if these websites made any changes to their website analytics tool by March 2023. What percentage of these websites removed Google Analytics or switched to another analytics provider? Might there even be websites that added Google Analytics after the ban?

In Italy, 82% of websites did not remove Google Analytics. In France, the percentage is slightly lower but still quite high, with 74% of websites remaining with Google to track their analytics. The highest percentage of websites changing to another provider can be seen in Austria: there, 34% removed Google Analytics, leaving 66% that stayed with Google. 

If website owners removed Google Analytics, where did they move to? Both in France and Italy, the vast majority adopted Adobe Analytics software. In contrast, website owners in Austria opted for Clicky and Statcounter to keep track of website analytics. 

Obviously, in response to the ban, Google has made changes in an attempt to become GDPR compliant. Website owners now must obtain proper consent from users before enabling Google Analytics tracking. Google also allows disabling of certain features like user-level data and offers IP anonymization and data retention controls.

But additional steps may be needed for full GDPR compliance. Some websites use consent management platforms to clearly explain how data is used and obtain verifiable consent from users. Privacy policies must transparently disclose the use of Google Analytics data collection and must allow users to opt out.

The future of Google Analytics in Europe remains uncertain. While Google has made efforts to assist websites in following GDPR guidelines, some critics argue their analytics tool will never be fully compliant. Ongoing legal challenges and bans seem likely, as privacy regulators closely monitor how personal data is collected and used across the digital landscape. The banning of Google Analytics may not be a solution that works for most website owners, especially when the ban is not being reinforced everywhere. 

Our data shows clearly that the majority of website owners in Austria, Italy and France did not change their analytics tool after the ban was imposed in their countries. Nevertheless, the Google Analytics ban is an opportunity for other companies that provide GDPR complaint web analysis solutions to gain an advantage in a Google dominated market. The decision for which analytics tool to use remains with website owners in Europe, who face a difficult decision in balancing user privacy concerns with business needs. With ambiguous regulations open to interpretation, no easy or risk-free solutions currently exist. Constant re-evaluation of privacy policies and tools will be necessary to keep up with this evolving data protection landscape.

Tech

Google Analytics has been the go-to tool for website owners looking to track traffic and user behavior since it was launched in 2005. But concerns about privacy and the European General Data Protection Regulation (GDPR) have put website analytics under intense scrutiny and even led to outright bans of Google Analytics in some countries. Thanks to GDPR, individuals have more control over their personal data. Besides that, companies and organizations are fully responsible for safeguarding their clients' personal information. In some European countries, it was deemed that using Google Analytics went against GDPR regulations, and its usage was banned.  In this blog, we're taking a look at how website owners are responding to those bans.

How GDPR-driven bans affect the use of Google Analytics in Europe

Dataprovider.com

Diversity, Equity and Inclusion (DEI) are three related but distinct concepts that are becoming increasingly important in the workplace. Diversity refers to the range of different backgrounds, experiences and perspectives that employees bring to the workplace. Equity, on the other hand, refers to the fair and impartial treatment of all employees, regardless of their background or identity. Inclusion, meanwhile, focuses on creating a welcoming and supportive workplace culture that values and respects all employees. Together, DEI initiatives promote a more diverse and inclusive workplace culture, which can lead to better outcomes for employees and the company as a whole.

Corporate Social Responsibility (CSR) refers to voluntary actions taken by companies to improve their social and environmental impact beyond what is required by law or regulations. CSR can take many forms, such as reducing a company's environmental impact, promoting ethical labor practices, supporting local communities, and donating to charitable causes. By engaging in CSR activities, companies can demonstrate their commitment to sustainability and social responsibility, which can enhance their reputation and build stronger relationships with stakeholders.

Lastly, the Sustainable Development Goals (SDGs) are a set of 17 goals adopted by the United Nations in 2015 as part of the 2030 Agenda for Sustainable Development. The SDGs cover a wide range of topics, such as poverty, health, education, gender equality, clean energy and climate action, among others. These goals provide a framework for countries and companies to work together to achieve a more sustainable and equitable world. By aligning their strategies and actions with the SDGs, companies can contribute to a more sustainable future while also creating value for their stakeholders.

In today's business landscape, there are growing societal pressures for companies to be socially, environmentally and politically aware. This has resulted in companies being forced to create more sustainable and responsible business models that take into account their impact on society and the environment. They must minimize their damage to society and the environment and more importantly, work on making positive contributions to both. The United Nations has referred to climate change as the "most pressing issue of our time," and public expectations are growing. As a result, companies need to take these frameworks into consideration; otherwise, they face backlash. It is becoming increasingly important for companies to be socially and environmentally responsible, and failure to do so can result in reputational damage and loss of customers.

By nature, investors are obliged to understand and identify the metrics which determine the most profitable investments. In recent years, ESG has emerged as potentially one of the most critical frameworks that investors prioritize. Why is that? 

The reason boils down to this simple fact: companies that prioritize ESG are more likely to perform better over the long-term. Studies have shown that companies that focus strongly on ESG tend to have better financial performance, lower volatility and a lower risk of bankruptcy. This is because companies that prioritize ESG are often better positioned to identify and manage risks. For instance, companies that fail to manage their environmental impact may face regulatory fines or reputational damage.

Moreover, companies that prioritize ESG are more adaptable to changing market conditions and can react to new opportunities, which explains why investors are increasingly looking to invest in companies that prioritize ESG. An analysis of the web illustrates the importance of ESG, as seen in an increase in consultancies specializing in ESG (see Figure 1). 

Which framework matters most on the web? 

While ESG factors appear to hold the greatest significance for investors among all frameworks, an analysis of the web reveals that for a long time, CSR has received more attention. An analysis of web searches (see Figure 2) shows that interest in CSR has remained steady over the years and until recently, was substantially greater than that for ESG. ESG is rapidly gaining traction though, and now receives almost as much attention as CSR. One plausible explanation for this phenomenon is the longstanding presence of CSR, which originated in the 1960s and has since garnered considerable attention. In contrast, ESG, with its inception in 2004 and subsequent promotion by the United Nations regarding the Sustainable Development Goals (SDGs) since 2020, is relatively new and still gaining traction.

The amount of Google searches for CSR is a clear indication that this framework is notably more incorporated in the general public’s interest. More generally, pinpointing a public’s preference is difficult, seeing as public sentiments vary and are influenced by events and trends and can vary based on regional, cultural and individual preferences. How public sentiment and interests are influenced by ongoing public discussions, and how this affects what matters, is exemplified by the rise of DEI. While this framework is rather new, DEI has become a driving factor in much public discourse, as the awareness of and importance of promoting diversity, equity and inclusion within organizations and society as a whole grows. Among the four frameworks, we can clearly see that over the past 2.5 years websites that mention DEI have grown the most. It is mentioned considerably more often than ESG but has not yet reached the level of CSR (Figure 3). 

DEI initiatives have gained significant traction and are increasingly seen as indispensable factors for innovation, employee engagement and customer loyalty. This emphasis on diversity, equity and inclusion reflects a growing demand for more inclusive and socially just organizations and public systems. As traditional frameworks are questioned and public demands become more uncontestable, investors will have to take frameworks, such as DEI, into closer consideration. The overall increase in engagement with DEI and its related services is evidenced by a comparison of ESG consulting services and DEI consulting services (see Figure 4).

The significant increase in websites referencing DEI consulting can be traced back to a number of factors. One potential explanation points to the increase in services provided by DEI consultants. An analysis of the websites matching the DEI consulting shows that these consultants offer a variety of support, including mental health initiatives, team-building activities and more. In recent years, mental health awareness has experienced a sharp rise, resulting in an increased focus on employee well-being within organizations. DEI consultants recognizing this need have incorporated mental health support as part of their services. 

Comparatively, when looking at ESG consulting and environmental issues more generally, such as sustainability or climate change, the availability of professionals who specialize in these areas might be more limited than for DEI. The complex nature of many environmental challenges may require a more specialized skill set that less consultancies offer. Additionally, the SDGs continue to play a consistent role in sustainable investment decisions, as they provide a framework for addressing global challenges and achieving sustainable development.

All four frameworks, ESG, DEI, CSR and SDG, are increasingly referenced on the web. Over the past two years, DEI has seen the sharpest growth online, reflecting the increased awareness and promotion of diversity and inclusion. As the concept of ESG becomes more widely known, it may gain traction in the coming years. However, ESG ratings have also been seen as a gimmick, reflecting a lack of trust in ESG reporting. The fact that there are currently no universally agreed-upon metrics and standardized reporting procedures may hamper ESG from being universally adopted. The ‘deadline’ to accomplish the SDGs is 2030, so it can be expected that the urgency to address these goals increases as we approach the end of the decade. CSR will remain an important topic, especially as corporations need to attract younger generations into the workforce. Millennials and Gen Z, more than any previous generation, prioritize making an impact and being able to see that impact through direct cause and effect. In order to keep an active and motivated workforce, corporations need to communicate and act upon their social responsibility. 

Public Sector

Environmental, Social and Governance (ESG) are three key factors that measure a company's sustainability and ethical performance. The environmental aspect of ESG refers to a company's impact on the environment, such as its efforts to reduce greenhouse gas emissions, promote energy efficiency and manage waste. The social aspect of ESG, on the other hand, focuses on a company's impact on society, including diversity and equality in the workplace, fair labor practices and data protection. Lastly, governance deals with a company's leadership and decision-making processes, such as board composition and political contributions.

Driving change: exploring the importance of ESG, DEI, CSR and SDGs

Environmental is, for example, about how a company is dealing with climate change, Social is about how it makes sure employees and suppliers are paid and treated well and Governance is about how a company deals with the leadership, this includes pay but also internal audits. 

Using ESG criteria when investing is also called sustainable investing or responsible investing. There are many institutions that are setting standards for the reporting, for example, the Task Force on Climate-related Financial Disclosures (TCFD), but there’s no definitive taxonomy of ESG factors.

Many of the largest investment firms are using ESG and creating special funds with ESG shares. ESG investing is a hot topic but because there are no standards or laws that make it mandatory to have an ESG report, there’s also no good overview of what companies make these reports and how. Especially when you take into account that ESG isn’t limited to publicly traded companies. Private companies are increasingly taking a stance on these issues because clients but also employees demand this. 

We looked into our data to see whether ESG reporting is gaining traction among businesses. Companies that will make an ESG report will in most cases publish this on their website because the report is meant for the world to know how a company is performing on these matters. Additionally, if ESG reporting is becoming more popular, businesses that support companies in creating ESG reports will also mention such a service on their website.

Here, we look at English-speaking countries: US, UK and Australia to see how many websites address the topic of “Environmental, Social and Governance”. One of the first things we see is  a steady increase in the number of websites that mention ESG. For August 2022 we record 6,670 individual hostnames.  

Not surprisingly, among the three countries we’ve examined the US has the largest number of businesses that mention “Environmental, Social and Governance” with a share of 67%, followed by the UK with 25% and Australia with 8%.

To get a better idea what companies mention “Environmental, Social and Governance” on their website, we look at the Standard Industrial Classification (SIC) codes that we assign to business websites.

We can see that among all of the sites that explicitly refer to ESG, 38% can be categorized as falling under SIC 87 (Engineering, Accounting, Research, Management, And Related Services), 12% fall under SIC 73 (Business Services), 10% are SIC 67 (Holding and other Investment Offices) and 9% are SIC 62 (Security and Commodity Brokers, Dealers, Exchange), the remaining 31% fall under a diverse set of other SIC scores.

This break-down suggests that ESG is gaining traction in a variety of sectors. Not only are there more companies that report on ESG but there also seems to be a good proportion of businesses that offer services to create ESG reports.

Taken together, the topic of “Environmental, Social and Governance” is gaining traction among businesses. Here, we’ve shown that the web is a good source to not only see ESG trends but also to understand in which sectors ESG emerges as particularly relevant.

Asset Management

ESG stands for Environmental, Social and Governance, and represents criteria based on which companies can be evaluated for investment decisions beyond financial factors. Companies often produce ESG reports for investors that care about how the company addresses topics of sustainability, diversity and management among others. Investors increasingly seek to invest in companies that report and make progress on these issues.

Follow us

Questions?

Investing & reporting

How GDPR-driven bans affect the use of Google Analytics in Europe

Driving change: exploring the importance of ESG, DEI, CSR and SDGs

A quick way to monitor ESG reporting on the web

Start today