Referring to a post on Infectious Greed "Infectious Greed: Web Analytics as Free-Fire Zone".
Paul Kedrosky rationalizes Google's acquisition of Urchin as a strategic step meant to take care of click frauds "After all, it seems clear that Google is going to make an Urchin-like service to advertisers -- what better way to to deal with the growing drumbeat over click-fraud than to pre-emptively put a fraud detection app in front of advertisers.". I can see an additional rationale leading this acquisition and it is an end-to-end ad optimization suite where Ads submitted on Google Adwords web site are tracked also on the customer's web site (Inside urchin) in order to gain reliable end-to-end click to buy(Action) conversion tracking.
They currently suggest a conversion tracking capability but it is not something that works automatically and people need to implement it manually in their website - A method that is not bullet proof in my opinion and does not work for everyone.
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