Google says it has generated $54 billion in economic activity

Revealing estimates for its economic contributions to the American economy for the first time, Google said it generated $54 billion in activity for businesses, Web publishers and nonprofits last year.

More than $14 billion of that economic activity was in California, more than any other state, according to a report Google released Tuesday. Google has its headquarters and employs more than 9,000 in the state, it said. The company claims that businesses bring in $2 in revenue for every $1 they spend on AdWords, Google's online search advertising program. Businesses receive five clicks on their search results for every one click on their ads, it estimated. According to the calculation, businesses get $8 in profit for every $1 they spend on AdWords.

Analysts say Google is emphasizing its role in creating jobs and economic development to counter a growing perception on Capitol Hill that it abuses its dominant position in online advertising. That is a tactic commonly employed by technology companies campaigning for support in Washington, D.C., and elsewhere.