Cost Analysis

   

Google Analytics

    Google Analytics 360 is equipped with significant advantages over the standard version. Some of these advantages include: a dedicated account manager, discovery/needs analysis, implementation support and audit, training from Google experts, 24/7 emergency support, data integration services, reporting configuration, analyst consulting services, technology recommendations, and more (Google Analytics 360 vs. Standard). Both versions of Google Analytics come with basic reports and are equipped with Adwords, but what really sets Google Analytics 360 apart from the standard version is its ability to harness the complete power of the database through comprehensive support and advanced reporting from Google experts.


Costs
     The standard version of Google Analytics is free, however the premium version, Google Analytics 360, costs $150,000 per year. This $150,000 per year cost can be paid on a monthly basis of $12,500. 

     The cost of implementing Google Analytics 360 into IVK besides the $150,000 per year for the database would also include the hiring of a website analytics manager. According to Glassdoor.com, the average salary of a website analytics manager is $110,441 per year with the average range falling between $84,000 and $156,000 a year (Salary: Web Analytics Manager).

     It is possible that IVK may desire to hire multiple employees to form a Google Analytics management team and in that case, the cost of implementing Google Analytics would be substantially more. However, hiring a team of employees to manage Google Analytics 360 seems unnecessary because Google provides complementary reporting and analysis via its own team of experts at no extra cost. In an article in The Atlantic, it discusses how Google uses data to build a better employee.

Cost Breakdown/Analysis
      IVK’s total operating expenses amounted to $120,574,976 in its most recent year of business. If IVK invested in hthGoogle Analytics 360, the $150,000 expense would raise their total operating costs to $120,724,976 and on a percentage basis Google Analytics would account for 0.12% of the company’s total operating expenses. Hiring the website analytics manager to manage Google Analytics 360 would add another $110,441 to the company’s operating expenses bringing the total to $120,835,417 of which Google Analytics 360 and the salary of the web analytics manager would account for 0.22% of the company’s operating expenses.

Google Analytics – Free

Project costs                                                                                       Investment

Google AnalyticsProject Licensing                                                     $     0

Google AdWords add-on for 3 years                                                  $450,000

New project manager                                                                          $115,000

Team members                                                                                    $  30,000

Total                                                                                                    $595,000

Assumptions for Google Analytics

1. Google Analytics is free 
2. Google AdWords is an add-on and we would budget $150,000 per year for 3 years 
3. New Project Manager would be hired to manage the marketing analytics and any issues that may arise with this aspect of the marketing strategy. The manager should be able to meet the needs of IVK and help to increase the traffic to the site. The salary is based on the average Web Analytics Manager's salary.
4. Two additional staff would be used. They are already currently employed by IVK and would dedicate 25% of their time on this project ($60,000 annual x 25% = $15,000)

IVK Financial Information

REFERENCES

Austin, R. D., Nolan, R. L., & O’Donnell, S. (2016). The adventures of an IT leader. 
      Boston, MA. Harvard Business Review Press.

DeRose, C. (2013, October 07). How Google Uses Data to Build a Better Worker. 
      Retrieved October 09, 2017, from
      https://www.theatlantic.com/business/archive/2013/10/how-google-uses-data-
      to-build-a-better-worker/280347/

Knight, J. (2015). Harvard Business Review (HBR) - Return on Investment. 
      Retrieved October 03, 2017, from https://play.google.com/store/apps/details?
      id=com.hbr.domestic.android.reader

Salary: Web Analytics Manager. (2017). Retrieved October 03, 2017, from       
      https://www.glassdoor.com/Salaries/web-analytics-manager-salary-

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