Small dealer groups can compete more effectively against larger companies if they make good use of advertising online, according to a survey.

SmartAge.com and Milward Brown Intelliquest say small businesses plan to use promotions including direct mail, website links, chat forums, bulletin boards, and banner advertising.

The survey of small dealer groups venturing into e-commerce found 80% of respondents expected online promotions to help them compete more effectively with larger players in the market.

All those asked expected the internet to help them in the future and 45% thought it had already.

Only 11% of respondents said online promotions did not help to compete. Thirty per cent were using online promotions to target local customers, compared with 38% who were using the Internet to advertise nationally.