• by December 1, 2000

More small businesses are establishing websites primarily to advertise and promote their business rather than to conduct e-commerce, according to SuperPages.com's Second Annual Small Business Internet Survey, recently conducted for Verizon Information Services.

According to the survey, small businesses that established a website to advertise and promote their business increased 123% over the past year (21% in 2000 compared to 8% in 1999). Conversely, small businesses establishing a website primarily to sell products decreased 48% during the same period (13% in 2000 compared to 25% in 1999).

"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% 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 website found that getting online is both rewarding and simple. Fifty-five percent of small businesses with a website report that the site has broken even or has paid for itself in increased business. Forty-eight percent of small businesses with a website say that their site has met or exceeded their expectations, compared to 33% in 1999. Additionally, 57% found that a website was easy to create, rating the ease of the process 7 or higher on a scale of 1 to 10.

Small businesses with a website 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.

While many small businesses have yet to adopt the Internet as a marketing tool (only 27% of small businesses reported having a website), small businesses that are already online may be ahead of their offline competitors. The data suggests that small businesses with websites 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. The study found that 48% of small businesses with a website believe their customers come from outside a 50-mile radius. Only 20% of small businesses without a website believe the same. Also, companies with a website 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 website rated themselves 7 out of 10 for their understanding of how their customers and competitors are using