Google: $880 Million Impact in Colorado
Tuesday, May 25, 2010
Posted by: Su Hawk
Google: $880M economic impact in Colorado
Denver Business Journal
Google Inc. issued state-by-state estimates of its economic impact Tuesday, saying that in Colorado it generated $880.2 million in business and nonprofit activity last year through advertising.
The Mountain View, Calif.-based online search giant (NASDAQ: GOOG) said that 35,400 Colorado businesses benefitted from Google, either by placing their ads on Google's site that brought them business or by placing Google advertising on their own websites and earning revenue.
Google said the business activity it generated for Colorado advertisers and website publishers totaled $878,010,000 in 2009.
The company also said it donated free advertising worth $2,232,000 to 100 Colorado nonprofits last year under its "Google Grants" in-kind donation program.
Google said the total economic value it generated for Colorado businesses and nonprofits was $880,242,000 in 2009.
Nationwide, Google estimated its 2009 business and nonprofit impact at $54 billion.
"People think of Google first and foremost as a search engine, but it's also an engine of economic growth for business in Colorado and across the country," said Claire Johnson, Google's VP of global online sales, in a statement.
Google's effort to tout its economic impact across the country "comes at a time when it's facing growing criticism over privacy practices and alleged anti-competitive behavior from public interest groups, competitors and the government," the Tech Chronicles, the San Francisco Chronicle's technology blog, reports Tuesday.
Google employs some 100 workers in Boulder, mostly focused on engineering, sales and support for Google Apps as well as engineering for geographic systems and the Google Chrome web browser.
Google said its estimates of business impact are based on the perceived economic value generated by Google Search and AdWords, Google AdSense and Google Grants last year.
The company said it assumed that businesses receive an average of $2 for every $1 they spend on AdWords, and that businesses receive an average of five clicks on their search results for every one click on their ads.
Click here for Google's nationwide report on economic impact.
Click here to download Google's data on its economic impact in Colorado.
And click here for Google's explanation of how it developed its impact estimates.
Monday, Google for the first time disclosed its revenue splits with search and content providers, saying in a blog post that publishers get 68 percent of revenue it collects from ads on their sites, the Silicon Valley/San Jose Business Journal, a DBJ sister newspaper, reported. The search giant said it pays content providers 51 percent of the revenue from search ads.
The disclosures came after requests from content providers for more transparency but also in response to an antitrust lawsuit in Italy filed by newspaper publishers there.
Compiled by the DBJ's Mark Harden | firstname.lastname@example.org