What´s the Story With Banner Ads?

If you´ve spent any time surfing the Internet, you´ve seen more than your fair share of banner ads.

These small rectangular advertisements appear on all sorts of Web pages and vary considerably in appearance and subject matter, but they all share a basic function: if you click on them, your Internet browser will take you to the advertiser´s Web site.

But how do they work and why are they there?

Banner ads are usually relatively simple pieces of HTML code, but their presence on the Web and their importance in Internet-based business is immense.

Over the past few years, most of us have heard about all the money being made on the Internet. This new medium of education and entertainment has revolutionized the economy and brought many people and many companies a great deal of success. But where is all this money coming from? There are a lot of ways Web sites make money, but one of the main sources of revenue is advertising. And one of the most popular forms of Internet advertising is the banner ad.

A banner ad is simply a special sort of hypertext link. A bit of HTML code instructs a Web server to bring up a particular Web page when a user clicks on a certain piece of text. Banner ads are essentially the same thing, except that instead of text, the link is displayed as a box containing graphics (usually with textual elements) and sometimes animation.

Because of its graphic element, a banner ad is somewhat similar to a traditional ad you would see in a printed publication such as a newspaper or magazine, but it has the added ability to bring a potential customer directly to the advertiser´s Web site. This is something like touching a printed ad and being immediately teleported to the advertiser´s store! A banner ad also differs from a print ad in its dynamic capability. It stays in one place on a page, like a magazine ad, but it can present multiple images, include animation and change appearance in a number of other ways.

Banner Ad Objectives

Advertisers generally hope a banner ad will do one of two things. Ideally, a visitor to the publisher site, the Web site that posts the banner ad, will click on the banner ad and go to the advertiser´s Web site. In this case the banner ad has brought the advertiser a visitor they would not have had otherwise. The banner ad is a real success if the visitor not only comes to the site but also buys something. Failing a click-through, advertisers hope that a publisher site visitor will see the banner ad and will somehow register it in their heads. This could mean the visitor consciously notes the content of a banner ad and decides to visit the advertiser´s site at some time in the future, or it might mean that the visitor only peripherally picks up on the ad but is made aware of the advertiser´s product or service.

This second effect of advertising is known as branding. We´ve all experienced the effects of branding before. Say you see ads on television for Brand X glue all the time. The ads don´t seem to particularly affect you -- you don´t leap from your couch to go buy glue -- but down the road, when you´re at the store shopping for glue, they may affect the decision you make. If you don´t have any other reason to choose one type of glue over the others, you´ll probably choose the one you´re most familiar with, Brand X, even if you´re only familiar with it because of advertising.

So there are several ways a banner ad can be successful. Consequently, there are several ways advertisers measure banner ad success. Advertisers look at:

    Clicks/Click-throughs: The number of visitors who click on the banner ad linking to the advertiser´s Web site. Publisher sites often sell banner ad space on a cost-per-click (CPC) basis.

    Page views: Also called page impressions, this is the number of times a particular Web page has been requested from the server. Advertisers are interested in page views because they indicate the number of visitors who could have seen the banner ad. Although they don´t measure the effectiveness of a branding campaign, they do measure how many visitors were exposed to it. The most common way to sell banner ad space is cost per thousand impressions, or CPM (In roman numerals, M equals a thousand).

    Click-through rate (CTR): This describes the ratio of page views to clicks. It is expressed as the percentage of total visitors to a particular page who actually clicked on the banner ad. The typical click-through-rate is something under 1 percent, and click-through rates significantly higher than that are very rare.

    Cost per sale: This is the measure of how much advertising money is spent on making one sale. Advertisers use different means to calculate this, depending on the ad and the product or service. Many advertisers keep track of visitor activity using Internet cookies. This technology allows the site to combine shopping history with information about how the visitor originally came to the site.

Different measures are more important to different advertisers, but most advertisers consider all of these elements when judging the effectiveness of a banner ad

Advertising with Banners

An advertiser that is interested in posting banner ads on other sites has three basic options. The advertiser can:

    Arrange to display other Web sites´ banner ads in exchange for them displaying its ad.
    Pay publisher sites to post its banner.
    Pay an organization, usually a banner network like DoubleClick or Flycast, to post the banner on a number of publisher sites.

These three arrangements take many forms and advertisers and publishers must choose the specific arrangement that best suits them. If you want to post banner ads on other sites but don´t have the capital to mount a traditional advertising campaign, you may choose to exchange banner ads with other sites. There are two ways you can go about this. The first is to individually develop relationships with other Web sites and trade specific banners. This is a very natural process and allows you to place your banner ads conscientiously and post other Web site banner ads that fit your site well. Your banner ad doesn´t end up on very many sites, however, unless you invest a whole lot of your time in seeking out interested webmasters.

If you want to get your banner ad on a lot of sites in a short amount of time (and don´t want to pay for it) then your best bet is joining a banner exchange program.

Contact Justuklix for assistance in your Banner Advertising Campaign and get a free quote

What Can Justuklix Do For You?

Website Building

Justuklix provides Web Design & Development services to clients across all business sectors and private sectors. We can custom design a professional template for you as well as insert the content and images.
read more

Corporate Social Media

Justuklix has skillful and professional designers that can make your facebook or other social media page look more sophisticated with various styles and interactive technique.

read more

Internet Advertising

Justuklix has advertising experts on staff to assist you in developing a first class campaign that will help you to reach out to your target audience.

read more

SEO & Web Statistic Analysis

Justuklix offers an effective search engine optimizing services to give your website a high ranking in major search engines as well as providing an excellent return on investment.

read more