Small businesses are wasting over £3bn on websites that are invisible to customers, according to new research from Microsoft adCenter. The report, which questioned 400 small firms, shows that 62% are not investing in search marketing, therefore not reaching out to potential customers.
Those companies not investing in search marketing are avoiding it due to three factors. The expense being the main disadvantage, with 56% avoiding it due to this reason. Time also came into it with 44% believing it would take them a whole day to set it up and 33% believing it would be too complicated for them.
IT chairman for the Federation of Small Businesses Peter Scargill said: “A well-known website can allow a small business to compete on an equal footing with larger competitors. But that only works if potential customers can find the site.
“Having an online presence is something that more and more small businesses are using to drive growth in the future, but they will be wasting their money if they don’t make people aware of it.”
Regionally small businesses from the North are the least likely to use search marketing. Despite 78% having an online presence 75% are still not investing in search marketing. The Midlands have seen the highest returns after investing in search marketing, with 85% seeing an immediate increase in sales.
Microsoft has just launched search marketing guidelines for small businesses to provide quick, simple and cost-effective advice on how to set up and benefit from search marketing. These include keeping advert copy short and descriptive and choosing the right key words.
© Crimson Business Ltd. 2007
