Businesses focusing on internet success

Businesses must take more advantage of internet

Businesses focusing on internet success

Half of all UK businesses believe that adapting to consumers’ internet behaviour is crucial to their future success, a new survey has revealed.

Small businesses are becoming more online-focused to reflect changes in consumer patterns, as the survey shows that 75% of companies are making their online presence more central to their overall business.

Sales on the internet have trebled in three years and businesses expect another doubling over the next three years to 13 % of their overall sales.

Online marketing is naturally following suit, with spending on internet advertising set to increase by a half over the next three years. Overall UK investment in internet marketing is expected to reach £3.3bn by 2010.

However, the findings show that businesses are still yet to make the most of the internet’s potential, with 70% saying they still had a lot to lean about how to reach customers online and only 23% believing they made better use of the internet than their competitors. The survey, by the Confederation of British Industry (CBI) and Google, does however suggest that businesses are recognising the opportunity offered by the internet, according to Nikesh Arora, vice president of European operations, Google.

Businesses are ‘preparing to invest to make the most of it. Even if they don’t see immediately how to reach their customers online, they know they have to invest to do so,’ said Arora.

“I think this is a positive sign that business here is increasingly engaged online and is prepared to put the Internet at the centre of their business strategy.”

© Crimson Business Ltd. 2006

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