ADOTAS- According to a report released by Google Inc. yesterday the company generated $54 billion in U.S. economic activity in 2009. The worlds largest search engine helped generate revenue for advertisers, website publishers, nonprofits, and social enterprise businesses.
The report also detailed, for the first time, the economic impact they had on all 50 states. California, not surprisingly, took the lions share at $14.1 billion.
The report stated, “We make most of our revenue from the ads shown next to our search results, on our other websites and the websites of our partners.” Google’s report also went on to say “Through these ad programs, we help many others make a living, too.”
But competition for revenue is stiff as the Internet’s share of overall advertising spending is forecast to rise to 17% in 2012 from 13% this year. ZenithOptimedia, a London-based ad buyer owned by Publicis Groupe SA has forecast this 4% increase in spending for internet advertising over the next 18 months.
Google’s report continued: “We conservatively estimate that for every $1 a business spends on AdWords, they receive an average of $8 in profit through Google Search and AdWords,”
Despite this rosy outlook, Google’s share value has declined 23% this year.