We had an interesting discussion over here yesterday. The question was: does Google use keyword, behavioral, and/or aggregate data from Google Analytics as part of its algorithms? There were two sides to the argument:

1. Yes, it provides a 360 degree view of the search experience which it can then use to improve the final search experience (and make more money).
2. No, it would violate privacy and would generally be wrong and there is no need to use that data for the company’s gain.

After some research into the Google Analytics Terms of Service, we discovered that using that data would not be a violation.

6. INFORMATION RIGHTS AND PUBLICITY . Google and its wholly owned subsidiaries may retain and use, subject to the terms of its Privacy Policy (located at http://www.google.com/privacy.html , or such other URL as Google may provide from time to time), information collected in Your use of the Service.

We cannot confirm whether or not the data is actually part of their algorithms, but it would be extremely hard to believe that Google, a company that’s primary purpose is to store, organize, and rank data, keeps each of its products in their own little bubble. So how could this data be used to enhance search results?

1. Google can better understand user behavior at an industry and keyword level (average time on site, average time for conversions, total conversions, etc) and set benchmarks
2. Understanding behavior past the search engine, they can better predict relevancy factors (Quality Score, overall positioning), click fraud and ways to maximize revenue

So assuming your site is well optimized for both search engines and conversions (because Google Analytics or not, Google knows a crappy site when it sees one) the ultimate question is could running Google Analytics give you an extra boost?

We don’t full understand how all these variables impact your SEM, but we believe they are all pieces of the puzzle.