Avinash Kaushik has one of the best posts on Google Analytics and AdWords that I’ve read; he cleared up some concerns many are having with allowing Google to collect your Web Analtyics and PPC Advertising.

Here’s the main reason why Google would have a hard time making sense of your Analytics and PPC data:

"Most of you who read this blog, and I, actually work with Analytics tools and I think we can safely say that this is a non-trivial challenge to overcome even when we use dedicated analytics tools and just for one company. Think integration of WebTrends and Omniture and ClickTracks etc with our PPC data and getting even half decent insights fast enough. It is really complicated, no matter how you look at it.

If we can’t even do it well for one company, ours, for Google to do it for the rest of the world and all the different business models and acquisition strategies is a non-trivial challenge.  Even though there are examples of extremely efficient arbitrage, specifically in the foreign currency markets, I am skeptical that it is “easy” for Google to find “insights” and do so in a timely manner to over charge us and do so while balancing that against real ROI Google would get for itself.

I also left a comment on Avinash’s blog saying I’m not really worried about Google merging Google Analytics and AdWords to get more information about each user, for the reasons mentioned above.