THE Internet is failing to deliver results for North West businesses, according to new research by Lloyds TSB Commercial.

The bank's twice yearly "Business in Britain" survey found that almost two-thirds of the region's companies advertise their products on-line.

But yet, only two per cent report a significant increase in business as a result.

And 33 per cent of those surveyed dismissed the medium entirely, saying on-line marketing activity had not had any discernible impact on their business.

The survey also found that 63 per cent of firms not currently using the Internet were unsure whether the web would form part of their business plan for the coming 12 months. A further 13 per cent said they felt certain it would not.

Mr Derek Woodhead, area director of Lloyds TSB Commercial North West, said: "The Internet has opened up a huge range of new opportunities for firms to market their products and services.

"Yet, the overwhelming majority are failing to see a return on their investment and remain sceptical about its potential as a marketing tool."

He went on: "More local firms are advertising on the Internet than six months ago and, for many, it's a 'suck it and see' situation.

"But unless businesses start to see the tangible benefits, they may prefer to rely on more traditional methods such as direct mail and press advertising."