Medium-sized businesses could do more to attract internet users to their websites, a new study indicates.

According to research by Microsoft, 61 per cent of British firms view e-commerce as a "critical" part of their sales strategy.

However, only 57 per cent of respondents are currently reported to advertise via the internet, although this proportion is forecast to rise to 89 per cent within two years, reports E-consultancy.

Overall, 15 per cent of firms surveyed claimed that they were using internet marketing to its full potential.

Of those companies looking to improve their online campaigns, 63 per cent wish to retain users, while 39 per cent see improving brand awareness as their main marketing priority.

The Microsoft study also revealed that improving internet advertising could be a wise move, as just over two-thirds of consumers research products online first before making a purchase.

Last month, an E-consultancy survey indicated that despite 82 per cent of B2C marketers believing increasing traffic was crucial in raising online revenue, only 44 per cent are managing to do so effectively.