While Google (GOOG) doesn't generate any significant revenue directly from Google Analytics, it uses it to provide better reporting features to search and display advertising partners, thus driving advertising revenues. The Internet search giant announced new social features for Google Analytics this week.

Analytics has been focused on the search and display advertising segments traditionally, and it will now offer data for social media advertising and marketing campaigns as well. Google will add a new Social tab to Analytics, which will enable users to view Social Reports. It will offer advanced features to measure traffic and engagement metrics for visitors from social networks like Google+, Facebook , Twitter, LinkedIn etc.

Google competes in the search and display advertising markets with Microsoft (MSFT), Yahoo (YHOO), AOL (AOL) and Facebook.

Phil Mui, Google Analytics' group product manager, told Marketing Land that while many measurements keep track of trends, they don't show businesses how their investments in the social networks help sales. He added:

"Our goal with the new reports is to tie social activities and referrals to measurable, meaningful economic value so businesses can more effectively evaluate which social channels are impacting their bottom line, and which tactics will lead to measurable economic value."

With Social Reports in Google Analytics, users can measure engagement, conversion and traffic metrics from social channels, tie them to actions, and optimize their content for better monetization of social users using visual reports. It will also show statistics related to social sharing, comments and likes for content posted on supported social platforms.

Google uses Analytics primarily to drive its display and search advertising partnerships, which account for nearly 8% of its total value. We currently have a $627 Trefis price estimate per Google share, which stands nearly 2% below its market price.