The study, called the Autumn 2002 E-commerce Report, found that 39% of small businesses cut their ad and marketing spends at the first sign of trouble, compared with 36% of medium-sized businesses and 37% of large businesses.
Out of 1.1m UK businesses surveyed, 38% of all companies slashed their advertising and marketing budgets, while outsourcing budgets were second to go at 28%, closely followed by research and development.
Advertising and marketing spends were also first to go among firms in the retail and distribution sector, with 48% of companies in this sector admitted cutting their promotional spends, compared with 34% of manufacturing companies and services firms.
The report, which also includes information on email marketing, said that regional press is the most popular medium for advertisers to market themselves.
Over half-a-million businesses (554,000) currently advertise in the regional press, it found. It said that it is most popular among small- and medium-sized businesses, with 50% of small businesses prefering to use it followed by 47% of medium-sized businesses.
The study was conducted by market research firm Continental Research, which specialises in compiling data about media, advertising, IT and telecoms and finance sectors.
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