Google said today that its advertising and search services produced an economic impact of some $905.9 million for the state of Michigan in 2009 - a figure the Internet giant says it derived from a “conservative” calculation of the value of its paid ads and free search results.
Google said it counts 39,600 Michigan companies and organizations among its clients. Companies that advertise through AdWords get a 2-to-1 return on their investment, according to an estimate by Google’s chief economist, Hal Varian. But Google says that companies also get additional benefits from free search results.
The economic impact report, which Google conducted itself, does not attempt to estimate how much of the revenue is new spending in Michigan versus existing ad spending that was redirected to Google from other businesses, including media companies.
Mike Miller, leader of Google's Ann Arbor office, said the local operation continues to hire new employees but declined to offer specific projections.
But Mike Miller, Google’s Ann Arbor office leader, said the company plays a key role in boosting Michigan’s economy.
“It’s a place that’s had very tough economic times over the last decade. Generating almost a billion dollars of economic impact is pretty substantial given the economic times,” Miller said in an interview.
In its economic impact report - released today in conjunction with similar reports detailing figures for the other 49 states - Google specifically highlighted its effect on Ann Arbor-based Zingerman's.
The gourmet deli’s mail order operation has reported a 4-to-1 return on its AdWords investment, according to the report.
Google also said that it had donated $2.6 million in ads through its Google Grants program to 140 Michigan nonprofits. That includes organizations like Ann Arbor-based Michigan Innovators, which was founded by Eastern Michigan University professor Bud Gibson.
Meanwhile, Google declined to offer specifics about its hiring plan in Ann Arbor, where the Internet giant established its AdWords headquarters in 2006. Google said in 2006 that it would hire 1,000 workers at the office by 2011, but the firm  has come under scrutiny for falling short of the hiring pace it promised.
Google hired close to 800 workers globally in the first quarter, Miller said, and the company currently has several jobs posted for its Ann Arbor office.
Miller said Google currently employs “more than 250” workers at its offices in Ann Arbor and Birmingham. He declined to offer specific figures for the individual offices, but the Ann Arbor personnel count is believed to be more than 200.
“Our economic impact on Michigan bas been both the hiring and also the economic impact we’ve had for the small, medium and large sized businesses that operate here in the state,” Miller said.
"We continue to have open roles and continue to hire," Miller said.
The downtown Ann Arbor AdWords office, which is based at the McKinley Towne Centre at Liberty and Division, focuses mostly on sales to small and medium-sized clients. The Birmingham office handles sales to automotive clients.
Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.
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