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Google is not exactly known as the ultimate keeper of your privacy. In fact, they are at the forefront of the personal information market - a market that values every piece of data linked to a person with a specific value. This value increases when data is cross-referenced and matched up with other relevant data - helping to paint a completer picture of you as a consumer. This data then helps marketers and advertisers tailor their advertising to you, increasing the chance that you will purchase one of their products or services.
How does this come into play with Google's Analytics? As you've probably figured out if you use Analytics, the software captures an unbelievable amount of specific data regarding visitor behavior on your website(s). Analytics captures not only how people arrived on your website (another website, a search query, etc.), but exactly where they came from, what keywords they used to find you, how long and which pages they stay on, what browser they're using, where they geographically originate from, language settings, and more. Aggregating all this data from multiple sources can paint a surprisingly complete picture of an Internet user as far as their browsing habits. Where does Google get this data? You guessed it...
Interestingly enough, Google could probably use your Analytics data without even asking, at least based on what's in their privacy policy. But if word of that came out, their already controversial use of data would become even more of an issue for them.
Here's how to access Google Analytics Data Sharing:

As you can see, we've opted to share our information. Why? Because we serve ads on some of our websites, and in Google's DoubleClick Ad Planner portal, we are able to share specific information with advertisers that gives them more information regarding our website, so they can make a more informed decision when it comes to buying ad space with us.
You will also be able to see some aggregate data regarding other websites that have enabled sharing, and where you fall in relation to them. In other words, how competitive is your website in its niche.
Google also gives the following examples of advantages of enabling Analytics Data Sharing:
So there you have it - Google is providing incentives for opting in to data sharing. If you feel comfortable sharing your information and think you could make use of some of the additional data sharing benefits you'll have access to, go for it. If you're paranoid about others seeing your data, opt-out.
Note that while you can opt out of data sharing at any time, the data they've already captured will remain in play. We suggest you consider these implications carefully, based on your business, industry, and how valuable/ secretive your data is, before opting in.
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