The paper describes the essence of the use of online marketing for small businesses in Croatia and using the advantages of its tools and methods for better promotion and general business operations. There are a lot of elements, methods and tools in online marketing that can help small businesses in Croatia in the promotion and sales growth, but the biggest problem and threat is taking a negative attitude towards the internet because of bad online marketing strategy. The paper starts with a description of the key concepts of its topic, a description of the history and the beginning of online marketing, its advantages and disadvantages, and the description of methods that increase companies sales and advertising. A research was also conducted involving 50 small businesses in Croatia and an interview with the CEO of Gamersbook, Ivan Marušić. At the end of the paper there is an optimal strategy for small businesses in Croatia that can guarantee the success of an online marketing strategy today. The strategy is designed due to primary and secondary research, and applies to all types of products and services, but is more efficient and gives more concrete results for products and services that are suitable for internet sales.