Google Inc (NASDAQ:GOOGL) Effect On The UK Economy

Google Inc (NASDAQ:GOOGL) has provided between $16 billion and $42 billion to the UK economy, the search giant says, by helping thousands of businesses bring in digital revenues through its search engine and other products.

Accountancy firm Deloitte revealed a report which shows what Google has done in the country. One of the things mentioned, is the creation of over 200,000 jobs.

According to the search giant, many new roles in digital advertising and search engine optimization may not be around if it wasn’t for them.

According to the new study, Google has helped UK businesses export its products and make changes for the better.

The reports mentions six important areas where the search giant has helped. Search and advertising products, content distribution, advertising services for agencies and publishers, Android platform and smartphone applications, Gmail and Google Docs, digital initiatives that help entrepreneurs, students and businesses.

The report showing the good side of Google comes after years of facing the media. The search giant has been accused of diverting profits outside of the country, which they say is being done to reduce the tax bill.

Last year, the country announced it was introducing a new law to prevent this from happening again.

The search giant believes what they have done outweighs the negative. Eileen Naughton, Google’s managing director for UK and Ireland, said the company helps businesses grow and unlock their digital potential.

The report reveals the effect each of its products have on the UK economy. YouTube, which is visited by thousands of people every day, generated an economic impact between $84 million and $161 million last year. The video site created between 1,000 and 2,000 jobs.

Billions Made and Jobs Created

British businesses using Google Search and AdWords made between $16 billion and $42 billion from their ad spend with the search giant last year. Google claims this created 530,000 jobs.

GoogleThe study estimated that for every $1.53 invested in online advertising, businesses receive the triple or even more in gross advertising profits.

Google is everywhere in the UK, around 5 million British businesses use Google products or services. Over 400,000 jobs are linked with Android app development, the report says, and more than $6 billion is made for app developers.

Google also helped improve the UK’s digital skills. It has invested almost $5 million in technology education the last two years. The company has also promised to train one million people around Europe next year.

Google employs 3,900 staff in the UK, but its products and services seem to be the ones making a difference over there. The search giant had 47,756 employees two years ago and is not done growing. Google is said to be revealing its new phones at the end of this month and plans to have self driving cars in the next few years. The company is also working on Project Ara and Project Loon, one will deliver phones you can easily take apart and the other will provide Internet through giant balloons to remote areas around the world.

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Sean Farlow
Sean Farlow
University graduate with a bachelor's degree in business administration. Big fan of sports teams from South FL.