What is banner advertising?
A web banner or banner ad is a form of advertising on the World Wide Web delivered by an ad server. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser. In many cases, banners are delivered by a central ad server.
When the advertiser scans their logfiles and detects that a web user has visited the advertiser’s site from the content site by clicking on the banner ad, the advertiser sends the content provider some small amount of money (usually around five to ten US cents). This payback system is often how the content provider is able to pay for theInternet access to supply the content in the first place. Usually though, advertisers use ad networks to serve their advertisements, resulting in a revshare system and higher quality ad placement.
Of course, it’s a form of online advertising through banners.
Banner advertising is also called display advertising (as opposed to text-only advertising) because of the visual nature of banner ads.
What is a banner ad?
A banner ad, or a web banner, is an advertisement displayed into a web page. The advertisement consists of an image (.jpg, .png, .gif) or of a multimedia object (usually created using Flash).
Thus, banner ads can be static or animated, depending on the technology used to make them.
Example of a static banner ad:
How do banner ads work?
Banner ads are intended to generate traffic to a website by linking to it. Also, web banners can function as regular, print advertisements: inform, notify about a new product, increase brand awareness and so on. However, most of banners are clickable and their main function is to get clicked on. But we’ll talk about banner effectiveness in a few moments.
Generally, banner ads are placed in high traffic websites that offer interesting or useful content. But, besides the traffic, there are other important aspects to be taken into consideration when choosing a website to advertise on.
One of these aspects is the website’s target, which has to more or less match with the banner’s intended audience.
Banner ad effectiveness
One advantage of the online advertising over the traditional one is that its effectiveness can be easily measured. Regarding banner ads, the main effectiveness indicator is the click-through rate. The click-through rate (CTR) is calculated by dividing the number of users who clicked on the ad by the number of times the ad was displayed (impressions).
For instance, one might say that a certain ad has a click-through rate of 3%. That means that out of 100 impressions delivered, the banner was clicked on three times.
Therefore, the higher the CTR is, the more effective the advertisement is. It’s that simple.