UK firms struggle to reach customers online, study says

team.blue has published research showing that UK businesses are finding it harder to reach customers online. The study points to a widening gap between having an online presence and understanding how customers discover companies.

The survey covered more than 10,000 businesses across 11 European markets. It found that 35.1% of UK respondents said reaching customers online had become harder over the past two years, compared with 30.6% across the wider European sample.

The findings suggest a tougher environment for businesses that rely on search, digital advertising and online referrals to attract customers. In the UK, respondents identified changing algorithms, rising advertising costs and increasing competition as the main barriers to improving online visibility.

According to the research, 37.1% of UK businesses cited changing algorithms as a key challenge, while 32.5% pointed to higher advertising costs. Another 28.9% said intensifying competition was making it more difficult to stand out online.

AI readiness

The report also found a sharp divide between awareness of artificial intelligence and readiness for its effect on customer discovery. While 58.9% of UK businesses said AI would change how customers find businesses online, only 22% said they were prepared for that shift.

Almost half, or 46.9%, said they were completely unprepared, the highest level among the markets surveyed. Smaller businesses appeared particularly exposed, with 37.3% of UK businesses with 50 employees or fewer saying they were completely unprepared for AI-driven change.

Concern about online visibility was not limited to large companies with substantial digital marketing budgets. Among smaller UK businesses, 35.2% said reaching customers online had become harder, broadly in line with the national picture.

Claudio Corbetta, Chief Executive Officer of team.blue, said: "We're experiencing a period of significant change in how businesses are discovered online. Customers are finding companies through more channels than ever before, while AI is reshaping the way information is surfaced and recommended. Many businesses recognise this shift is happening, but our research shows they don't always feel prepared for what comes next.

"The challenge is not simply keeping up with change, but building the confidence and visibility needed to grow in a more complex digital environment."

Owned channels

The data also pointed to a gap between maintaining a website and understanding whether it produces commercial results. Although 81.3% of UK businesses said they had a website, far fewer said they could measure how visitors became leads or customers.

Only 12.4% of UK respondents said they accurately tracked how website visitors converted into leads or sales, while 45% said they did not track this at all.

This suggests many businesses have limited visibility over which digital channels are delivering paying customers. Without that information, they may find it harder to judge whether spending on search, social media, marketplaces or advertising is producing returns.

The UK market appeared particularly competitive, with paid search costs among the highest in Europe and organic visibility becoming harder to secure. The report described an environment in which customer discovery is becoming more fragmented across different platforms and systems.

Bilal Ahmed, Chief AI & Data Officer of team.blue, said: "As AI becomes a bigger part of how customers discover businesses, it is becoming harder to understand what drives visibility and growth. Businesses need a clear digital foundation they can control and build on. The opportunity isn't to chase every new AI tool or platform; it's to ensure the information customers and AI systems rely on is accurate, trusted and easy to find. That's why a strong website remains one of the most important assets a business can have."

The study drew responses from businesses ranging from sole traders to large companies in markets including Belgium, Bulgaria, Denmark, Ireland, Italy, the Netherlands, Slovakia, Spain, Sweden and the UK. In the UK sample, the figures point to a business community that broadly recognises AI's likely impact on online discovery, but has yet to build the systems or measurement needed to respond.