Internet marketing is the use of the Internet to advertise and sell goods and services. It includes pay per click advertising, banner ads, e-mail marketing, search engine marketing (including search engine optimization), blog marketing, and article marketing.
Internet marketing is a component of electronic commerce. It can include information management, public relations, customer service, and sales. Electronic commerce and Internet marketing have become popular as Internet access has become more widely available and used. As this article is written, well over one third of consumers who have Internet access in their homes report using the Internet to make purchases.
Internet marketing is associated with several business models. The main models include business-to-business (B2B) and business-to-consumer (B2C). B2B consists of companies doing business with each other, while B2C involves selling directly to the end consumer. When Internet marketing first began the B2C model was the first to emerge. B2B transactions were more complex and came about later. A third, less common business model is peer-to-peer (P2P), where individuals exchange goods between themselves. An example of P2P is Kazaa, which is built upon individuals sharing files.
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 marketplaces.
Internet marketing has had a large impact on several industries including music, banking, and flea markets. 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 downloading 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 one of 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.com instead. Ebay.com 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.com 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.