Affinity Internet eCommerce Survey Reveals Small Businesses Trends; 2005 eCommerce Survey Highlights Shifts in Online Marketing and Shopping

Business Wire, Nov 15, 2005

FORT LAUDERDALE, Fla. -- Affinity Internet, Inc. the leading web services provider for small businesses, today announced the results of the 2005 Affinity eCommerce survey. Designed to measure how shifts in eCommerce trends will impact small businesses this holiday season; the nationwide eCommerce survey not only confirmed what consumer surveys have predicted, that increasing energy costs and the effects from natural disasters will drive more people online to do their shopping this holiday season, but supported claims that this shift in eCommerce is expected to directly impact small businesses.

Over 2700 business owners with an online presence responded to Affinity's eCommerce survey in an effort to identify online holiday sales predictions and gain greater insight into online marketing trends. The survey took into account answers to strategic questions dealing with online sales activity, sales expectations for the holiday season and the most effective marketing and advertising strategies for businesses operating on the web. The results not only revealed exactly how businesses expect to be impacted by this shift in eCommerce trend, but identified what strategies would be most effective in maximizing the sales opportunity presented by this influx of online shopping.

Some businesses have already begun to feel the effects of increased online shopping. Of those surveyed, 44 percent have seen an increase in online sales over the past year. When asked about sales expectations for the upcoming holiday season, a large majority of small business owners felt that the overall growth of eCommerce will continue throughout the holiday season and that a continued increase in sales is expected through web sites. Survey results discovered:

--70 percent expect that overall eCommerce sales this holiday season will be better than last year,

--69 percent expect to see an increase in web site traffic this holiday season, and

--54 percent expect that their businesses eCommerce holiday sales will be better than last year, with 73 percent expecting at least a 10 percent or more increase.

"The purpose of the Affinity eCommerce survey is to gain the insight and information needed to create tools and services that help our small business customers take their businesses to the next level," said John Enright, vice president of marketing, Affinity Internet. "This holiday season brings with it the promise of increased online shopping, and with advents like search engine optimization and local search, small business stand to disproportionately benefit. It is our responsibility to prepare our customers to take full advantage, both meeting and exceeding their holiday sales goals."

As a part of the survey business owners were asked what marketing and advertising strategies they felt were most effective in drawing people to their site and increasing sales revenue. A large majority of respondents found that word of mouth (53 percent) and online marketing (45 percent) are the most important and effective forms of marketing for businesses operating on the web.

Despite the fact that online marketing was up from last year by 17 percent, several issues continue to plague businesses and prevent them from fully utilizing this vital advertising tool. Topping the list were cost of purchasing ads (31 percent), not knowing how to create online campaigns (18 percent), too time intensive (16 percent) and difficulty tracking results (11 percent).

"While the survey revealed that businesses are beginning to understand the true benefits of marketing and advertising online, it also showed that there are many misconceptions about the cost and effort involved in creating an online marketing campaign," said Jim Collins, president, Affinity Internet. "It is obvious that the business community needs to be educated about online marketing and the tools available to help manage it. Affinity Internet is not only dedicated to leading this educational effort, but is committed to the continual development of products and services that make designing and maintaining online marketing campaigns both affordable and manageable."

Conducted in September, the 2005 Affinity eCommerce Survey was an invitation-only, online survey conducted among a sample of Affinity ValueWeb customers. Of the 2725 participants, 77 percent of those who responded have between 1 and 10 employees, and 11 percent have between 11 and 25 employees. More information about the survey, including downloadable graphs and charts, can be found at www.affinity.com .

About Affinity Internet

Affinity Internet provides more than 180,000 small businesses the tools, services and support they need to make the Internet a useful and relevant part of their businesses. The company does this through professional web design, online marketing and web hosting services designed to save small businesses their most valuable resource - time.

Affinity's services are supported by its customer service "success guides" - knowledgeable consultants with a passion for serving small businesses and a dedication to their success. The company is committed to empowering its customers to write their own Internet success stories.