The term online advertising is simply a term that relates to advertising online, or advertising over the Internet. It is a form of promotion that uses the internet and the World Wide Web to deliver marketing message to attract the customers. Online advertising come into existence due to the concept of advertising. So, to understand online advertising, we should be clear about what advertising is.Advertising is a form of communication which persuades the customer for making purchase decision and to provide information to the viewer. When the information is presented in an enjoyable context it readily accepted. Thus, we can term advertising as an infotainment concept. The concept of advertising came into existence with the Marketing Mix. Marketing mix well known as 4 Ps of marketing i.e.; Product, Price, Place, Promotion and advertising is a component of Promotional mix, which is to create awareness among the customers about the products and services for making the purchase decision. Advertisement can be seen from date backs in the ancient time also. Thus according to the Marketing Legend, Philip Kotler, “Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor”. With the economic and social effects advertising also covers two main functions i.e.; the provision of information and persuasion (Norris 1984).