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Improved video quality has helped webcams encroach on traditional video conferencing systems.

New features such as automatic lighting controls, real-time enhancements (retouching, wrinkle smoothing and vertical stretch), automatic face tracking and autofocus, assist users by providing substantial ease-of-use, further increasing the popularity of webcams.

For a more complete list see Comparison of webcam software.

One such function has the webcam act as a "magic mirror" to allow an online shopper to view a virtual item on themselves.

Webcams can be used to take video clips and still pictures.

Various software tools in wide use can be employed for this, such as Pic Master (for use with Windows operating systems), Photo Booth (Mac), or Cheese (with Unix systems).

Unauthorized access of webcams can present significant privacy issues (see "Privacy" section below).

In December 2011, Russia announced that 290,000 Webcams would be installed in 90,000 polling stations to monitor the Russian presidential election, 2012.