Last week, Yahoo took the leap into the analytics game with the purchase of IndexTools. This week, in a new announcement by the COO of IndexTools, Dennis R. Mortensen, wrote on his blog that IndexTools will be provided for free.

Previously it was not clear whether Yahoo planned to sell IndexTools as a packaged Analytics product or whether they would provide it as a free tool much like Google Analytics and Microsoft adCenter Analytics called Gatineau, but now it seems that it will indeed be provided as a free tool.

As a summary, he wrote:

Yahoo! currently intends to provide the IndexTools Web Analytics service FREE of charge to clients and partners who accept the standard Yahoo! agreement.

Yahoo! intends to provide the service FREE of charge, but it is however important to note that clients and partners must accept a new standard Yahoo! agreement to continue using the service.

Another news article I discovered this morning read as follow:

IndexTools is superior in functionality to Google Analytics, much more advanced and even rivals tools like Omniture and Webtrends.

A free offering from Yahoo would put them in the driving seat of the web analytics world. This free tool will also help them sway marketing dollars that would have otherwise gone to Google.

Another huge benefit that Yahoo will have is the ability to put their pixels (data collection mechanism) around the web and hence collect data. Which, in turn, will help their Behavioral Targeting efforts, which are currently limited to Yahoo portal only. This is huge!!! and something that might be of interest to both Bassel and Usama of the Strategic Data Solutions group of Yahoo (the group that IndexTools will roll into).

In this same article the writer continues to give a few scenarious of what he suggest can happen next as he would certainly do away with Google Analytics and adopt IndexTools without holding his breath. It is definately worth reading Move Over Google Analytics Here Comes Yahoo!

Personally, I’d have to do some more research on IndexTools to really give my opinion, so until then, do some reasearch of your own and see for yourself whether IndexTools will rival Google Analytics.