In this paper, we review some of the key concepts in ultrathin film magnetism which underpin nanomagnetism. We survey the results of recent experimental and theoretical studies of well characterized epitaxial structures based on Fe, Co and Ni to illustrate how intrinsic fundamental properties such as the magnetic exchange interactions, magnetic moment and magnetic anisotropies change markedly in ultrathin films as compared with their bulk counterparts, and to emphasize the role of atomic scale structure, strain and crystallinity in determining the magnetic properties. After introducing the key length scales in magnetism, we describe the 2D magnetic phase transition and survey studies of the thickness dependent Curie temperature and the critical exponents which characterize the paramagnetic-ferromagnetic phase transition. We next discuss recent experimental and theoretical results on the determination of the exchange constant, followed by an overview of measurements of the magnetic moment in the elemental 3d transition metal thin films in the various crystal phases that have been successfully stabilized, thereby illustrating the sensitivity of the magnetic moment to the local symmetry and to the atomic environment. Finally, we discuss briefly the magnetic anisotropies of Fe, Co and Ni in the fcc crystalline phase, to emphasize the role of structure and the details of the interface in influencing the magnetic properties. The dramatic effect that adsorbates can have on the magnetic anisotropies of thin magnetic films is also discussed. Our survey demonstrates that the fundamental properties, namely, the magnetic moment and magnetic anisotropies of ultrathin films have dramatically different behaviour compared with those of the bulk while the comparable size of the structural and magnetic contributions to the total energy of ultrathin structures results in an exquisitely sensitive dependence of the magnetic properties on the film structure.