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Subject: UKNM: FW: E-lies and statistics
From: Ani Tertzakian
Date: Mon, 8 May 2000 19:18:41 +0100

The great American writer H L Mencken said that the first thing any
journalist should ask when confronted by a politician is: "Why is this
lying bastard lying to me?" Heaven knows what he would have made of
today's dotcom exec, laden with paper options worth millions, so long as
he has a smattering of "statistics" to support them.

E-lying is common among individuals who daily have to answer that
crucial
question: exactly how popular is your website? They tend to resort to
gobbledegook about the site scoring "hits" that often run into millions.

Does this mean they have millions of visitors? Not exactly...

A hit is simply a PC's request for an individual chunk of information on
a
page. You can triple the number of hits just by adding the number of
pictures each viewer must download to view the page.

Another tool of the trade is the notion of the "subscriber". If you have
at
some stage visited a website and passed on your e-mail address, you are
now,
in all probability, part of that company's share price. It scarcely
matters
that their junk mails go straight into your bin. Net business relies on
the
idea that a potential customer captured today will turn into hard cash
tomorrow. In dotcom la-la land, a name, any name, on a subscriber
register
is gold dust. Never mind that this is like Boots claiming as a customer
everyone who walks past its doors and happens to stare at a window
display.

Even dafter than that, banks and stockbrokers who should know better are

playing this game too, converting mythical future sales into real,
concrete
valuations of a company today. They ascribe a value to each name on
those
digital miles of junk-mailing lists, add up the lot and try to flog the
business to the markets on the basis of their calculations. Are they
mad?
No, just greedy.

Any real analysis of website use starts with "page impression". Measured
by
software on the website, this is the number of individual times a page
is
viewed. How do you know the figures are true? Look at the way the
printed
world works: most leading newspapers and magazines are audited by
independent organisations that check the sales figures. If you want to
know
the circulation of The Sunday Times, or any other national newspaper,
you
turn to the Audit Bureau of Circulations (ABC) for their certified
statistics.

ABC is now in the business of auditing websites too, and you can find
its
electronic arm, ABCE, at www.abce.org.uk. This is not the easiest site
to
navigate or read, but if you want hard facts about web "circulation" it
is
the best hope anyone has at the moment. ABCE takes those page-impression

logs and verifies that they are accurate, or at least as accurate as
possible. Even the organisation's managing director, Richard Foan,
admits
the final figure may be slightly out, probably erring on the side of
caution.

What is important is that the same software and methodology are applied
to
each site. So if Yahoo! comes up with twice the audience as BBC Online,
then
the proportions will be correct even if the actual numbers are still
hard to
pin down. The audit points up the dramatic difference between hits and
users: BBC Online News, for example, may claim 41m page impressions over
a
two-month period, but we see that they have been achieved by about 2.4m
users, which starts to put things in proportion.

The rub is that only 140 of Britain's commercial websites are currently
willing to subject themselves to ABCE's audit. Are the rest happy to
wing it
on a lie and a prayer?

In the print world, an unaudited newspaper or magazine circulation claim
is
greeted with the scepticism it deserves. The same must surely apply to
the
web. The technology exists to rate web viewing, but what is missing is
willingness on the part of many web companies to be honest about the
audience they are achieving and to open their statistics to outside
scrutiny. Stricter definitions of those elusive terms "user" and
"subscriber" are also needed to prevent any website that happens to have

acquired our e-mail address claiming us as a customer.

The web is overloaded with hype, which goes some way to explaining the
predicament of dotcom companies on the stock markets. We need more facts
to
support the bluster.


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