According to the U.S. Commerce Department, consumers spent $453.46 billion on the web for retail purchases in 2017, a 16.0% increase compared with $390.99 billion in 2016. That’s the highest growth rate since 2011, when online sales grew 17.5% over 2010. Forrester predicts that online sales will account for 17% of all US retail sales by 2022. And digital advertising is also growing strongly; According to Strategy Analytics, in 2017 digital advertising was up 12%, accounting for approximately 38% of overall spending on advertising, or $207.44 billion.

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As digital marketing continues to grow and develop, brands take great advantage of using technology and the Internet as a successful way to communicate with its clients and allows them to increase the reach of who they can interact with and how they go about doing so,.[4] There are however disadvantages that are not commonly looked into due to how much a business relies on it. It is important for marketers to take into consideration both advantages and disadvantages of digital marketing when considering their marketing strategy and business goals.

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As of October 2018 almost 4.2 billion people were active internet users and 3.4 billion were social media users (Statista). China, India and the United States rank ahead all other countries in terms of internet users. This gives a marketer an unprecedented number of customers to reach with product and service offerings, available 24 hours a day, seven days a week. The interactive nature of the internet facilitates immediate communication between businesses and consumers, allowing businesses to respond quickly to the needs of consumers and changes in the marketplace.
More recently, companies have sought to merge their advertising messages into editorial content or valuable services. Examples include Red Bull's Red Bull Media House streaming Felix Baumgartner's jump from space online, Coca-Cola's online magazines, and Nike's free applications for performance tracking.[19] Advertisers are also embracing social media[23][24] and mobile advertising; mobile ad spending has grown 90% each year from 2010 to 2013.[25]:13
The Google, Yahoo!, and Bing search engines insert advertising on their search results pages. The ads are designed to look similar to the search results, though different enough for readers to distinguish between ads and actual results. This is done with various differences in background, text, link colors, and/or placement on the page. However, the appearance of ads on all major search engines is so similar to genuine search results that a majority of search engine users cannot effectively distinguish between the two.[1]

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While the obvious purpose of internet marketing is to sell goods, services or advertising over the internet, it's not the only purpose a business using internet marketing may have; a company may be marketing online to communicate a message about itself (building its brand) or to conduct research. Online marketing can be a very effective way to identify a target market or discover a marketing segment's wants and needs. (Learn more about conducting market research).
The first known large-scale non-commercial spam message was sent on 18 January 1994 by an Andrews University system administrator, by cross-posting a religious message to all USENET newsgroups.[13] In January 1994 Mark Eberra started the first email marketing company for opt in email list under the domain Insideconnect.com. He also started the Direct Email Marketing Association to help stop unwanted email and prevent spam. [14] [15]

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A text ad displays text-based hyperlinks. Text-based ads may display separately from a web page's primary content, or they can be embedded by hyperlinking individual words or phrases to advertiser's websites. Text ads may also be delivered through email marketing or text message marketing. Text-based ads often render faster than graphical ads and can be harder for ad-blocking software to block.[51]
Online reviews, then, have become another form of internet marketing that small businesses can't afford to ignore. While many small businesses think that they can't do anything about online reviews, that's not true. Just by actively encouraging customers to post reviews about their experience small businesses can weight online reviews positively. Sixty-eight percent of consumers left a local business review when asked. So assuming a business's products or services are not subpar, unfair negative reviews will get buried by reviews by happier customers.

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By using Internet platforms, businesses can create competitive advantage through various means. To reach the maximum potential of digital marketing, firms use social media as its main tool to create a channel of information. Through this a business can create a system in which they are able to pinpoint behavioral patterns of clients and feedback on their needs.[32] This means of content has shown to have a larger impingement on those who have a long-standing relationship with the firm and with consumers who are relatively active social media users. Relative to this, creating a social media page will further increase relation quality between new consumers and existing consumers as well as consistent brand reinforcement therefore improving brand awareness resulting in a possible rise for consumers up the Brand Awareness Pyramid.[33] Although there may be inconstancy with product images;[34] maintaining a successful social media presence requires a business to be consistent in interactions through creating a two way feed of information; firms consider their content based on the feedback received through this channel, this is a result of the environment being dynamic due to the global nature of the internet.[31] Effective use of digital marketing can result in relatively lowered costs in relation to traditional means of marketing; Lowered external service costs, advertising costs, promotion costs, processing costs, interface design costs and control costs.[34]

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