Research undertaken by the firm has revealed that the average marketing budget for e-commerce of large, consumer-focused UK companies stands at $251,300 for 1999, accounting for under 2% of their overall marketing budget.

Speaking at an international e-commerce conference in Malta, KPMG Consulting partner Paul Baker said: 'This amount pales into insignificance when compared with recent reports in the press that Internet start-ups are spending as much as 40% of their start-up capital on advertising and marketing to get their ventures off the ground.'

Baker also warned that despite well-known brand names and a strong market presence, established companies cannot afford to be complacent in the face of fresh competition.

'Established businesses will have to act quickly if they want to maintain their customer loyalty in the future in an on and off-line environment,' he said.

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