Here what Omniture (OMTR) had to say about Google Analytics on its conference call:
It is true that many of our competitors compete with us on price because that’s all they have to compete with us on. And we believe that kind of competition actually works in our favor. Some tools are even free as many of you know, which we do not view as negative. In fact, the company with the purported best free analytics tool placed a major order with Omniture in the second quarter, and that is probably the best estimate of all to the differentiation of Omniture from the free analytics tools.
Interestingly enough, we believe the reason these companies provide free analytics tools is so their customers who advertise in their platforms can convert visitors more effectively so they can afford to pay more for advertising. Well, that’s exactly what we do. We hope our customers convert visitors more effectively. Except that we do it for enterprise customers and mid market customers, and the providers of the free analytics tool will do it for the long end of the tail. Actually, we believe that over time we will develop closer partnering relationships with the major search engines and advertising platforms since our goal is so similar. If they are confident in their technology, they should want their customers to have objective analytics that encourage more spend on the most effective platforms.
The quotes are taken from the Omniture transcript which was published on Seeking Alpha a few hours after the call ended.