Google contributed $80 billion to US economy in 2011

By on July 2, 2012, 1:30 PM

Google’s VP of Americas Sales Margo Georgiadis has authored a post on the company’s official blog that reinforces the idea that the Internet is where business is done and jobs are created. To back up this claim, Google provided $80 billion of economic activity directly to advertisers, website publishers and nonprofit organizations across the US last year.

The post highlights the fact that 97 percent of Americans use Internet search to find local goods and services both on computers and mobile devices. And while some believe that technology is driving people to shop online rather than locally, this isn’t always the case.

Boston Consulting Group shows that US citizens who researched products online in 2011 actually spent about $2,000 to buy those goods in-store rather than online. Google says that’s nearly $500 billion in revenue that was spent on local retail.

Georgiadis cites multiple examples of how Google and the Internet is helping several businesses expand. New England baking company King Authur Flour recently took to the web and has since become an internationally-renowned business. Bornstein Sons, a home maintenance and repair contracting business based in New Jersey, now receives 25 percent of new customers from the web. Oriental Trading Company now sells four out of five of their products online.

The search giant is facing pressure from the US government for allegedly abusing their position in search and advertising. Mountain View reportedly holds an estimated 65 percent market share.




User Comments: 4

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Kayden Kayden said:

The number I want to see along side this is how much they got back in tax incentives, with out it we can not accurately gauge how much they actually contributed to the US Economy. Why wasn't this included Techspot?

Guest said:

"The post highlights the fact that 97 percent of Americans use Internet search to find local goods and services both on computers and mobile devices."

I find that hard to believe, especially considering that's more than the amount of Americans that have Internet access or computers. I checked the pages linked to from here and couldn't see that statistic listed anywhere either.

Guest said:

Nevermind, I overlooked it in the second link. Still seems like a very dubious claim to me.

Guest said:

Im glad to hear this because I am just getting started in internet marketing!

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