Google: $54 billion impact of search and search ads in US

Google's AdSense and AdWords products have a huge effect on state economies, the company says

Google's search service and search advertising products generated an estimated US$54 billion for U.S. businesses, Web site publishers and nonprofit groups in 2009, according to a study the company has released.

The Internet giant on Tuesday released its first state-by-state breakdown of the economic activity it enables through search and search advertising, ranging from a $14.1 billion impact on California's economy in 2009 to $15.9 million in Alaska. Six states -- California, New York, Florida, Illinois, Texas and Washington -- accounted for $32.8 billion of the $54 billion of economic activity Google identified in the study.

The Internet and Google advertising "level the playing field" for U.S. small businesses wanting to compete with larger rivals, said Claire Hughes Johnson, vice president of global online sales at Google.

Business owners from Louisiana, North Carolina and Washington, D.C., also talked about huge benefits of Google search advertising during a press conference in Washington.

ShoppersChoice.com has grown from a small brick-and-mortar grill and fireplace store in Baton Rouge, Louisiana, started in 1998, to an online business that expects to have $26 million in sales in a wide range of products this year, said Michael Hackley, the company's CEO.

The company began using Google's AdWords search advertising service in 2004, Hackley said. "We have the best corner in every city in the United States with Google," he said.

Sales have "increased rapidly" for the Georgetown Frame Shoppe in Washington, D.C., since the art gallery and custom frame shop began using Google AdWords in 2004, said owner Peter Bortz. Recently, Bortz sold a $20,000 Andy Warhol print to a customer in Switzerland he had never met, through the company's Web site.

Tools like search advertising are important for U.S. small businesses, added Senator Mary Landrieu, a Louisiana Democrat and chairwoman of the Senate Small Business and Entrepreneurship Committee. Less than 1 percent of U.S. small businesses export their products, but Internet-based advertising could help them expand their markets, she said at the press conference.

Google based its estimated economic impact on three numbers: the amount of money Google paid out to Web sites using the Google AdSense product, the value of free advertising Google gives to nonprofits, and estimates on the amount of money made by advertisers. Google's estimates of the amount of money advertisers make from Google ad programs are based on two studies, one by the company's own chief economist, Hal Varian.

(Contact Grant Gross at grant_gross@idg.com. He's on Twitter at GrantusG.)

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Googlesearch enginesonline advertising

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?