Many owners of Web sites with Google Analytics and other web analytics tools to make critical decisions on how they can improve their websites to understand how people deal with their websites. Google Analytics both a platform robust and reliable Web analytics, while maintaining confidence and confidentiality of visitors to these sites. Now, Google Analytics take additional steps to provide more choice and transparency for website owners and users.
Additionally, we’re also releasing new functionality for website owners to provide an additional level of privacy for visitors to their sites by offering an option to anonymize IP address information sent to Google. Google Analytics uses the IP address of website visitors to provide general geographic reporting. Website owners can now choose to have Google Analytics store and use only a portion of this IP address for geographic reports. Keep in mind, that using this functionality will somewhat reduce the accuracy of geographic data in your Analytics reports. You can learn how to implement this within your existing Google Analytics installation here: http://code.google.com/apis/analytics/docs/gaJS/gaJSApi_gat.html