According to a survey by the Gallup Organization, Inc. more small businesses are establishing Web sites primarily to advertise and promote their business, in addition to conducting e-commerce, according to a Small Business Internet Survey conducted for Verizon Information Services.

According to the survey, small businesses that established a Web site to advertise and promote their business increased 123 percent over the past year.

"Research indicates that many consumers use the Internet to window shop - to research and browse before they buy from local merchants," said Patrick Marshall, group vice president - marketing of Verizon Information Services. "While transactional e-commerce may not be right for all small businesses, even the most local business can benefit from establishing a Web site to promote their products and services."

Interestingly, a separate study commissioned by SuperPages.com by Verizon found that 21 percent of online consumers say they research online but buy locally while only five percent say they research and buy products online.

The survey reveals that small businesses with a Web site found that getting online is both rewarding and simple. Fifty-five percent of small businesses with a Web site report that the site has broken even or has paid for itself in increased business. Forty-eight percent of small businesses with a Web site say that their site has met or exceeded their expectations compared to 33 percent in 1999.

Small businesses with a Web site also are enthusiastic about the future impact of the Internet on their business. Sixty-five percent describe the Internet as important to the future of their business, rating its importance 7 or higher on a scale of 1 to 10.

Widening The Technology Gap Among Small Businesses

While many small businesses have yet to adopt the Internet as a marketing tool, small businesses that are already online may be ahead of their offline competitors. The data suggests that small businesses with Web sites have a broader geographic reach, have a greater understanding of the Internet as well as how to conduct Internet transactions, and know more about how their customers and competitors are using the Internet.

48 percent of small businesses with a Web site believe their customers come from outside a 50-mile radius. Only 20 percent of small businesses without a Web site believe the same.

Companies with a Web site rated themselves 8 on a scale of 1 to 10 for their general understanding of the Internet, compared to those without an Internet presence, who rated themselves 6.

Companies with a Web site rated themselves 7 out of 10 for their understanding of how their customers and competitors are using the Internet, compared to those without an Internet presence, who rated themselves less than 5.

"Small businesses without a Web site may be at a disadvantage compared to their competitors who are online," said Marshall.

"Jupiter Communications estimates that companies will spend $7.3 billion on email marketing by 2005 - 4000% more than last year. That's 1,600 marketing email messages per year in the average consumer's inbox! The Internet marketer's challenge in the face of this email explosion will be to break through the clutter with the right message at the right time to the right person." - Business Wire