Last November, Businessweel rated one small Northeast Ohio city as the best place to raise kids in the Buckeye State. On Wednesday, that same small Ohio city ranked as the only Buckeye State city to make it on to Google's list of 50 eCity Awards list.
Called digital capitals, the 50 cities, one in each state, included several big cities like New York, Atlanta and Albuquerque but most were small cities. Google reported that the listed cities’ businesses are using the web to find new customers, connect with existing customers and fuel their local economies, and that across the country, businesses that are online expect to grow 40 percent faster.
"Through our search and advertising programs, businesses find customers, publishers earn money from their online content and nonprofits get donations and volunteers. These tools are how we make money, and they’re how millions of businesses do, too. It’s these solutions that make Google an engine for economic growth," said Allan Thygesen, Vice President, Global SMB Sales.
Solon, Ohio is a small city in Cuyahoga County with a population of about 23,000 that's located about 18 miles away from Cleveland in Ohio's Northeast Region. According to Google, Solon's tech-star status comes a combination of Science Olympiad-winning students and its online business community that connects local shops and restaurants with residents and visitors.
Businessweek noted Solon's "excellent school system and diverse population" as lures to why many of the small town's 3,346 families with children are living there. In addition to being the location where Nestlé manufactures Stouffer’s and Lean Cuisine, the affluent community in Ohio's most populous county is growing while maintaining "a friendly, safe atmosphere." Realtors say advantages like these are boosting the town to the top of Businessweek.com’s seventh annual list of great small towns to raise kids.
Google calculates its economic impact by examining the economic value provided by Google Search and AdWords, Google AdSense, and Google Grants in 2012.
To estimate the economic impact of Google Search and AdWords, the Internet giant relies on two conservative assumptions: First, that businesses generally make an average of $2 in revenue for every $1 they spend on AdWords, according to Google's Chief Economist, Hal Varian, who developed this estimate based on observed cost-per- click activity across a large sample of our advertisers. Varian's methodology was published in the American Economic Review in May 2009; Second, Google's assumption is that businesses overall receive an average of 5 clicks on their search results for every 1 click on their ads. This estimate was developed by academic researchers Bernard Jansen and Amanda Spink based on sample search log data and published in the International Journal of Internet Marketing and Advertising in 2009.
If search clicks brought in as much revenue for businesses as ad clicks, Google reported that these two assumptions would imply that businesses receive $11 in profit for every $1 they spend on AdWords. If advertisers receive 2 times as much value from AdWords as they spend on AdWords, and they receive 5 times as much value from Google Search as they do from AdWords, then the total profit they receive is 11 times what they spend, Google postulated.
Google said it did not include an attempt to estimate the economic impact of Google's core search and advertising business. "In search and advertising, we've derived a conservative estimate of the impact of our tools on businesses, website publishers, and non-profits, but we've left out such estimates as the cost savings for consumers now able to find the information they need more easily than before," Google report authors said. "We also have not estimated the economic impact our employees provide, or that of other major products like Google Maps and YouTube. So while we're confident in our estimates, consider them a lower bound on Google's true economic impact."
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