Google Claims $1B of Economic Impact in MN in ’10
Mountain View, California-based Google, Inc., recently released data showing that the Internet giant generated $1 billion in economic activity in Minnesota last year.
According to the data, Google's search and advertising tools generated $64 billion in economic activity in the United States in 2010, up from 2009 when the company spurred $54 billion in economic activity.
Specifically in Minnesota, about 28,000 businesses, Web site publishers, and nonprofits benefited from Google last year. In 2009, the company said it generated $863 million in economic activity for about 24,500 businesses, Web site publishers, and nonprofits.
To calculate Google's economic impact in each state, which is an estimate, Google examined the economic value provided by its search and advertising services-including AdWords, a service that lets customers create and run ads for their businesses. Google claims that companies see an average profit of $8 for every $1 that is spent on the service.
The company also looks at its Google Grants program, an in-kind donation program that awards free AdWords advertising to select charitable organizations.
Google said that it spurred the most economic activity in California-$15.2 billion.
But Minnesota experienced a larger economic impact than its neighboring states. According to the report, Google generated $643 million in economic activity in Wisconsin, $130 million in Iowa, $28 million in South Dakota, and $23 million in North Dakota.
Google was founded in 1998 and went public in 2004. Its revenue totaled more than $10.6 billion in 2010.
Click here to see a state-by-state map of Google's economic impact in 2010.