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Internet marketing, also referred to as Online Marketing, is Marketing that uses the Internet. The Internet has brought many unique benefits to marketing that include very low costs in distributing information and media to a global audience. However, the interactive nature of the media, both in terms of instant response, and in eliciting response at all, are both desirable qualities of internet marketing.
Internet marketing ties together both the creative and technical aspects of the internet, including design, development, advertising and sales. Internet Marketing methods include search engine marketing, display advertising, e-mail marketing, affiliate marketing, interactive advertising and viral marketing

Definition and scope

Internet marketing is most commonly a component of electronic commerce, but Internet marketing campaigns are also used to drive a marketing message for services that cannot even be ordered online.
Internet marketing can sometimes include information management, public relations, customer service, market research, and sales. Electronic commerce and Internet marketing have become popular as Internet access is becoming more widely available and used. Well over one third of consumers who have Internet access in their homes report using the Internet to make purchases

Advantages
Some of the benefits associated with Internet marketing include the availability of information. Consumers can log onto the Internet and learn about products, as well as purchase them, at any hour. Companies that use Internet marketing can also save money because of a reduced need for a sales force. Overall, Internet marketing can help expand from a local market to both national and international market places. And, in a way, it levels the playing field for big and small players. Unlike traditional marketing media (like print, radio and TV), entry into the realm of Internet marketing can be a lot less expensive.

Furthermore, since exposure, response and overall efficiency of digital media is much easier to track than that of traditional "offline" media, Internet marketing offers a greater sense of accountability for advertisers.

Compared to the other media marketing(like print, radio and TV), Internet marketing is growing very fast. It's also gaining popularity among small businesses and even consumers when trying to monetize their blog or website. The measurability of the internet as a media makes it easier to experience innovative e-marketing tactics that will prove a better Cost of Acquisition than other media. However, in most developed countries, internet marketing and advertising spending is around 5% only, while TV, radio, and the print are more.

Effects on industries

Internet marketing has had a large impact on several industries including music, banking, and flea markets - not to mention the advertising industry itself.

In the music industry, many consumers have begun buying and downloading MP3s over the Internet instead of simply buying CDs. The debate over the legality of duplicating MP3s has become a major concern for those in the music industry.
Internet marketing has also affected the banking industry. More and more banks are offering the ability to perform banking tasks online. Online banking is believed to appeal to customers because it is more convenient than visiting bank branches. Currently, over 50 million U.S. adults now bank online. Online banking is now the fastest-growing Internet activity. The increasing speed of Internet connections is the main reason for the fast-growth. Of those individuals who use the Internet, 44% now perform banking activities over the Internet.
As Internet auctions have gained popularity, flea markets are struggling. Unique items that could previously be found at flea markets are being sold on eBay instead. eBay has also affected the prices in the industry. Buyers and sellers often look at prices on the website before going to flea markets and the eBay price often becomes what the item is sold for. More and more flea market sellers are putting their items up for sale online and running their business out of their homes.
The effect on the Ad industry itself has been profound. In just a few years, online advertising has grown to be worth tens of billions of dollars annually. PricewaterhouseCoopers reported US Internet marketing spend totalled $16.9 billion in 2006.
As Advertisers increase and shift more of their budgets online, it is now overtaking radio in terms of market share.


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