One of the "big four" accountancy firms, Ernst & Young has said it is expecting an increase in the number of retail firms going bust in the next 12 months. The firm, which has recently acted for several well-known retail firms, said that traditional retailers are being hurt by the rise in online sales.

At the same time, reports suggest that internet advertising revenue is set to hit £1billion for the first time by the end of this year, outstripping the amount spent on traditional billboard campaigns. The internet has become more appealing to advertisers as more consumers subscribe to broadband. The faster connection speeds that broadband offers, together with the fixed monthly price, means that people are spending more time on the internet and are therefore using it to make purchases that they might otherwise make on the high street. It is estimated that internet sales will rise to around £20 billion in the UK alone.

Those retailers who have put a significant investment of time and money into their online retail stores are benefitting the most. Their sites are easier to find, easier to navigate and encourage purchase, which is why many are seeing a rise in profits from their online sales, which are not necessarily matched by their offline sales. A proper internet marketing strategy is critical to the success of the online store, and has to be matched by the back office systems that maintain customer communication and service.

With market growth in online sales set to continue, it pays to focus on your internet marketing, which could generate you more profits for a comparatively modest spend.