Top 3 Myths About Internet Marketing

Lack of understanding and old thinking has long cost small business owners their competitive edge and despite a steady stream of research proving the effectiveness of Internet marketing, yet again, it has mostly been larger firms taking advantage of this new advertising medium.

According to projections by eMarketer.com, online ad spending last year grew by more than 30%. In 2005 it surpassed the $10 billion mark for the first time. But many small and medium-size business owners (SMEs) are still wary of introducing Internet marketing to their business plans. If you listen to their reasoning, the Internet might be considered as the fax machine once was: unnecessary, unproven and not cost effective. Well, today ignoring the benefits of an Internet marketing strategy can cost them far more in lost profits than choosing postal mail over faxes. Recently a study was done to determine the top 3 reasons small businesses have been reluctant to fully embrace the increasingly relevant Internet in their marketing plans. The results showed similar misconceptions on both sides of the Atlantic as to what Internet marketing is, and what it can do for their business.

Myth #1: "My business doesn't need Internet marketing" Lack of perceived need was the most common reason offered up by the focus group participants, but few successful business owners would ever say that their business doesn't need to advertise. Internet search engine giant Yahoo!, whose advertising network reaches 80% of active Internet users (Nielsen/NetRatings, 2004) has hundreds of business categories in its directory right down to the smallest niche businesses. The reality is that if you have a product or service to sell, prospects are looking for it online, even if the actual purchase is made offline. The objective is that your website (or ad) be found when someone is looking to buy, and today's local search algorithms bring those local searches to you, the local business.