Online Marketing, also referred to as Internet marketing is the marketing of products or services over the Internet. When applied to the subset of website based advertisement placements, its commonly referred to as 'webvertising'. Its unique features are its benefits to marketing, one is the lower cost of distribution of information and media to a global audience. The interactive nature of Internet marketing, both in terms of providing instance response and eliciting response, is a unique quality of the medium. Online Marketing has become a very popular term in the World Wide Web.

Internet Marketing is associated with many business models. These are e-commerce, publishing and lead-based websites. Certainly it is also different from traditional marketing. It is more personal and can appeal to a specific interest. Although having a lot of advantages, it does has its limitations, security concerns and a certain effect on industries. This we shall explore now.

Online marketing is quite inexpensive. It is designed such that it allows consumers to research and purchase products and services at their own convenience. It also leads to faster results. Almost all measures of online marketing can be traced, measured and tested. The advertisers either pay web banner impression, per click(PPC), per play(PPP) or per action accomplished. Also, due to the exposure, response, and overall efficiency, online marketing is growing faster than any other media.

From the shopper's perspective, the tangibility of goods is taken into account. The product is not delivered to the user immediately and neither is the shopper present to try, touch, test the product. Online marketing has had its impact on several previously retail oriented products including music, film, pharmaceuticals, banking, flea markets, as well as the advertising industry itself. Online banking is believed to appeal to customers because it is more convenient than visiting bank branches. Other effect on industries include Internet auctions that are in place.