Filed under: Deals, Products and services, Consumer experience, Google (GOOG), Yahoo! (YHOO)

Websites produce massive amounts of data - which can be quite valuable and is a massive business, as seen with operators like Omniture (NASDAQ: OMTR), WebTrends, CoreMetrics, and Google (NASDAQ: GOOG) Analytics.

Well, Yahoo! (NASDAQ: YHOO) is jumping into the game. This day, the company announced that it has purchased IndexTools (the price tag was not disclosed).

Founded in 2000, the company has built a nice offering of analytics tools to measure web behavior. For example, you can examine things like the return-on-investment for paid search.

According to its website, IndexTools has grown 100%+ per year for four years (since 2002). What’s more, the customer retention rate is an impressive 98%.

Simply put, web analytics is absolutely critical for a major player in on the web advertising. Unfortunately, in the case of Yahoo, the company allowed Google to get a head start.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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This entry was posted on Wednesday, April 9th, 2008 at 9:51 pm and is filed under Latest News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.