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).

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GoTo.com (renamed Overture in 2001, and acquired by Yahoo! in 2003) created the first search advertising keyword auction in 1998.[20]:119 Google launched its "AdWords" search advertising program in 2000[21] and introduced quality-based ranking allocation in 2002,[22] which sorts search advertisements by a combination of bid price and searchers' likeliness to click on the ads.[20]:123

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As advertisers collect data across multiple external websites about a user's online activity, they can create a detailed profile of the user's interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting.[27] Advertisers can also target their audience by using contextual to deliver display ads related to the content of the web page where the ads appear.[20]:118 Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertiser's return on investment, or ROI, over untargeted ads.[28]

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