RedEye Report: the inaccuracy of IP and cookie-based online Management information

redeye%20report.jpgThe vast majority of Web sites still use IP-Based server logs to analyse web usage. It is commonly recognised that IP-based tracking systems are the least accurate and so some companies who require more robust MI have turned to cookie based systems. Clients require robust data to enable them to create more profitable customer relationships by getting more customers spending more money, more often. RedEye has developed technology to overcome this problem which also allows them to measure the accuracy of IP and cookie systems by comparing them to a known set of data. The results from those comparisons are published for the first time in 2003. The study is based on analysis of two of the UK’s largest ecommerce web sites, www.asda.com and www.williamhill.co.uk. The results are staggering: The IP-based approach overestimated unique visitors by up to 7.6 times in a single month while a Cookie-based approach overestimated unique users by up to 2.3 times in the same period.
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