Internet presents a new business environment with great potential for marketers. Virtual retailing / e-shops, in particular, own the unique property of combining advertising practices and on-line sales functionality. In that context, the consumer buying process may be completed from start to end, from the need recognition stage, initiated by advertising, to the purchase decision stage, in an easy and integrated way. Thus, the role of interactive advertisement in this environment is crucial. In this paper, we examine the characteristics and potential of interactive advertisement in virtual retailing and propose a multidimensional approach to product advertisement in the virtual store, taking into account the consumer, retailer and supplier perspective.