The Internet has changed everything in the world of marketing and media services. In order to survive in highly competitive econonomic conditions the corporations have to reinvent themselves to remain viable in the new economic realities of the world in general and Middle East and Dubai in particular.

The power of online marketing allows an organisation to reduce costs, and more importantly, manipulates information from all sectors along the chain to exploit growth opportunities. Online marketing serves as electronic hubs (e-hubs), bringing together suppliers and purchasers in common virtual environments. In this article, we try to discuss why firms choose online media services, how the Internet can be a marketing tool for marketers in terms of promotional tools and how the Internet will impact the thought and practice of online marketing.

As every one in the market thinks to make their businees more and more cost effective at present time services like search engine optimisation are in great demand in the UAE. Different sites compete to position themselves on famous search engines like Google, Yahoo, and MSN etc. It is interesting to note that not only aggressive SEO services are getting popular but the UAE market as a whole is witnessing remarkable growth in online advertising, media buying and creative online campaign services. This all is because of the difference of the cost between traditional marketing and advertising methods and newly emerging and highly attractive online marketing tools.

The World Wide Web can be used by businesses as a distribution channel, allowing direct sales to customers. As electronic commerce over the Web becomes more secure, sales and transactions are expected to explode. The supply chain is shortened as firms conduct direct transactions between suppliers and end-users without the involvement of intermediaries. Due to the nature of certain products and services offered, Internet has made it possible to shrink the supply chain by a process of dis-intermediation (elimination of middleman). Dis-intermediation has been described as the removal of intermediaries because of the ease with which they can be bypassed on electronic platforms. The outcomes, it is argued, will make marketing channels more efficient, ultimately benefiting the consumer. Consequently, transaction costs have reduced and responsiveness to customer requirements has improved considerably. These improvements often lead to price reduction and increased margin and sales turnover.

Where service is an important component of a company's product, the Web allows a firm to provide better information, better service, and thus a better product. In the online content business, sometimes the Web site is the product. Microsoft's MSN, a content and entertainment network is part of Microsoft's Internet strategy, but it's also a product in itself. Most companies with a Web site use it simply to promote their products. These companies may buy banner advertising on other Web sites such as Netscape or Yahoo in order to drive traffic to their own site. Traditional media advertising that includes a company's Web address also drives traffic to their site. Promotional use of the Web includes attracting media attention to a company's innovative use of the Internet. The Internet can also be used to distribute press releases, using Web sites and through email news delivery services.

In this new millennium, the business world has embraced new concepts that have dramatically changed the way in which organisations are structured and the way in which they act. With the advent of the World Wide Web, global competition is now a brutal reality and is always on the increase. The world of business has become an ever-changing environment where organisations have to adapt quickly as a means of survival and competence. A key to survival is the generation of knowledge to understand a strategy to stay innovative and synchronous with the furious pace of economy and business. The growth of the Internet has created a path for electronic business.