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Small to Medium-Sized Enterprises (SMEs) are being urged to adopt "at least a basic web presence" in order to grow their audience.
Amy Kean of the Internet Advertising Bureau said: "In July, four billion pounds was spent by consumers online who are now using the internet as first port of call to research, compare and buy products.
"It is essential to ensure that you have at least a basic web presence – basic in terms of at least giving the core information your customers will need to know about your business."
Ms Kean went on to caution that the degree to which SMEs can be moved online following company formation should reflect the scale of their business, acknowledging that in some circumstances offline advertising such as regional press may be more effective at targeting core audience.
She also cautioned SMEs against jumping on the bandwagon of web 2.0 by employing social networking sites and blogs as a marketing strategy.
"Setting up a simple MySpace page for your company can only be effective if you consider what it is your customers - or friends - would want from this service," Ms Kean noted.
A recent report from the Federation of Small Businesses revealed that just 18 per cent of SMEs are selling online and fewer than 1 per cent derive all of their sales through the internet.
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