Allocations to online merchandising tools and marketing are quickly surpassing the money spent on more traditional channels.

Online tools that help customers virtually test products - like online demos, product selectors and buying guides - are growing in popularity and considered a "must-have" by some industry experts.

John Bukovnik, president of online merchandising application provider Easy2, says that companies are turning to the web and enhancing their ecommerce portals as a way to remain competitive.

"Even in this economy, consumers are still spending - they are just doing it more wisely. Therefore, adding interactive tools that drive consumers to goods that meet their needs and help them make educated decisions, such as product selectors and buying guides, just makes good business sense," said Bukovnik.

A number of small businesses are also tapping other new media channels to market to consumers.

Micro-blog Twitter has gained notoriety as a way for small business owners to develop a rapport with customers while other companies are touching base with product fans on social networking sites.

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