Internet advertising 'increases turnover'

Small businesses can increase their turnover by advertising on the internet, a new survey has shown.

In the Federation of Small Businesses (FSBs)' biennial survey, nearly half (43%) of small businesses that advertised on the internet said that it had increased their turnover by up to one-fifth.

The number of small businesses with a website was also found to have increased by a quarter since the last survey, to around 70%. And 34% of businesses polled said that they plan to use the internet for sales and marketing in the next two years.

However, only 2.4% of those surveyed said that they sold online and linked to their suppliers. Home-based businesses and retailers and shops were least likely to have a website, or to use it to advertise.

"Small firms are becoming increasingly internet-savvy," said FSB national policy chairman John Walker.

"Despite the onset of an economic downturn, all small firms should look to the internet to maximise their sales and increase efficiency."

Nigel Gwilliam, head of digital at the Institute of Practitioners in Advertising, told More Than Business News: "In the current economic climate, small businesses must consider every means for efficiently bolstering their turnover.

"Internet advertising has a low cost of entry and can deliver value almost immediately. It is clear from these results that many small businesses have discovered this."