Economic Impact United States 2013
Stavroulla Kokkinis, Athina Kohilas, Stella Koukides, Andrea Ploutis, Co-owners The Lucky Knot 1 Alexandria, Virginia
The web is working for American businesses. And Google is helping. Google’s mission is to organize the world’s information and make it universally accessible and useful. Making it easy for businesses to find potential customers and for those customers to find what they’re looking for is an important part of that mission. Our tools help to connect business owners and customers, whether they’re around the corner or across the world from each other. Through our search and advertising programs, businesses find customers, publishers earn money from their online content and non-profits get donations and volunteers. These tools are how we make money, and they’re how millions of businesses do, too. This report details Google’s economic impact in the U.S., including state-by-state numbers of advertisers, publishers, and non-profits who use Google every day. It also includes stories of the real business owners behind those numbers. They are examples of businesses across the country that are using the web, and Google, to succeed online. Google was a small business when our mission was created. We are proud to share the tools that led to our success with other businesses that want to grow and thrive in this digital age. Sincerely,
Jim Lecinski Vice President, Customer Solutions
Economic Impact | United States 2013
Randy Gayner, Founder & Owner Glacier Guides West Glacier, Montana
The web is working for American businesses. Google is helping. Find out more at google.com/economicimpact
The Internet is where business is done and jobs are created. Across the U.S., Google’s search and advertising tools provided $111 billion in economic activity in 2013.1
of Internet users look online for local p roducts and services.
2 times as many jobs and twice as much revenue through exports were created 3
by web-savvy SMBs. Sources: 1. Google, “Economic Impact,” 2013 2. BIA/Kelsey, “Nearly All Consumers (97%) Now Use Online Media to Shop Locally,” March 2010 3. McKinsey Global Institute, “Internet matters: The Net’s sweeping impact on growth, jobs, and prosperity,” May 2011 4. The Internet Association, “Internet Enabled Part-Time Small Businesses Bolster U.S. Economy,” October 2013 *Note: The total value that U.S. Google advertisers and website publishers received in 2013 is the sum of the economic impact of Google Search, AdWords and AdSense. The value of Google Search and AdWords for businesses is the profit they receive from clicks on search results and ads minus their cost of advertising, estimated as $8 profit for every $1 spent. This formulation is derived from two studies about the dynamics of online search and advertising, Hal Varian’s “Online Ad Auctions,” (American Economic Review, May 2009) and Bernard Jansen and Amanda Spink, “Investigating customer click through behavior with integrated sponsored and non sponsored results,” (International Journal of Internet Marketing and Advertising, 2009). The economic impact of AdSense is the estimated amount Google paid to website publishers in 2013 for placing our ads next to their content. Please note that these estimates do not allow for perfect reconciliation with Google’s GAAP-reported revenue. For more information about methodology, visit: www.google.com/economicimpact/ methodology.html © Copyright 2014. Google and the Google logo are trademarks of Google Inc.
75% of the economic value created by the Internet is captured by companies 3
in traditional industries.
9 out of 10 4
part-time business owners rely on the Internet to conduct their businesses.
Google Economic Impact Report, United States 2013 | Nationwide Report
Economic Impact | United States 2013