As a person becomes more familiar with marketing, he should invest in banner advertising if he has not already done so.

In 2000, banner advertising was very popular. However, the use of banners on website becomes very obtrusive. There were few standards for advertising with banners on websites. Customers were becoming so annoyed with pop ups and banners streaming individual pages, that they complained.

Since the mid 2000, there has been a come back with banner advertising standards, which are helping this form of advertising, become the strategy of choice.

To understand the resurgent of banner advertisement you must familiarize your self with what a banner ad is and how it is used in advertisement. A web banner or banner ad is a form of advertising on the web.

This form of advertising consists of embedding an advertisement into a web page. The Banner or banners can consist of text, images, colors, animation, sound, and video, or flash. The image can be narrow or wide. The format or code can be written in many different codes.

Money saving Strategies:

Banners are best placed above the fold of any website and to the right of the page. Some time banners are place in the middle of the page but some critics would advise not to place the banner at the top middle of the web page. Only through testing will determine if this advice is wrong.

Banners are now placed and designed with a specific theme and place in strategic areas on the web page. Most banners are placed above the fold of the web page and to the right of any text or other images. The rational is we tend to read a web page like a book left to right top to bottom.

When building your ad use text that have a call to action. Tell the customers what you want him or her to do. Putting the ad above the fold of the page is more visible then below the fold. Most people will not scroll the entire page when searching.

Advertisers are now more subtitle and more affective with their banners ads. Most ads are place so skilled that it is hard to detect were the ad is. Advertiser should try to build an ad that has colors that match the color palette of the page they are advertising on.

Analyze any website you want to advertise on. Search for other banners that may be advertised there. Quickly scan the site to see how the site makes it money. Choose a target market by using search engines to help find your target market. Once you find your target market, visit those web pages and look at the kinds of banner ads being advertised. You want to be cautious of web pages that have nothing but advertisements these may cause your banners not to be seen.

Helpful Terms:
Impression: Each time you banner loads on a site is called an impression

Click: Each time a customers clicks your banner

Conversion: Each time a person, fill in the form for information better known as a lead.

CPM Cost per 1000: This is a strategy of measuring how much you will pay for a banner ad. Most times, you are charged on a CPM basis. That means you are charged for every 1000 impressions. For Example, a .00 CPM means you pay .00 for every 1000 impressions your banner receives. Moreover, be cautious of banner ad placements that are charging -.00 and even up to .00 you should pay no more than $ 2.00 for banner ad placement.

CPA Cost per Action: CPA means an advertiser will only pay when some kind of action has taken placed by the customer. For example, if a customer clicks on your ad then you are charged compared to impression when you banner loads you are charged.

Banner advertisement is perhaps the oldest and most common mode of advertisement in the world wide web (www). In its simplest form – it acts like a billboard, spreading a promotional message and helping interested visitors to jump to relevant web-site.

Difference between a physical billboard and on-line banner advertisement lies in ability of the later to measure campaign effectiveness. Unlike traditional ad media like TV or print where measuring audience response is difficult – its possible to obtain clear and accurate measurements of success or failure of on-line ads through web traffic analysis.

How good is banner advertisement for your business ? Should you adopt this known and trusted method or go for new ones like search engine based PPC ? The answer lies in your requirement and an understanding of what banner advertisement can deliver.

Let us discuss various concepts associated with on-line advertisement and analyze how banner advertisement works.

What Kind of On-Line Advertisement Suits my Business ?

There are three major reasons for creating online advertising campaign. These are:

*Building brand awareness

*Increasing website traffic

*Creating leads and sales

You need to analyze your precise requirements and prioritize the objectives of planned ad campaign. If the objective is brand building or pure promotion – banner advertisement is ideally suited. However, if you are more keen on leads and sales – targeted advertisements such as search engine marketing could be better option. In many cases – a mix of banner ad and search engine marketing could be the answer. One can find more information on Internet advertisement, specially in the context of export import trade and b2b portals here .

Key Concepts Associated with On-Line Advertisement:

Before proceeding any further, it is important to understand a few key concepts associated with on-line advertisements in general and banner advertisement in particular.

Impression:

Impression is a measure of how many times an ad has been viewed. How many people have viewed a banner ad or received an “impression” by seeing the ad – is a measurement of responses from the ad delivery system. Once a visitor has viewed a banner on a web page – an impression is recorded. Banner views are different from page views in the sense that there may be multiple banner views within one page view. There’s another distinction between page
view and banner view – some banner serving software do not count a banner view unless the visitor stays on the page long enough for the banner to be fully downloaded from ad server.

CPM:

CPM refers to cost per thousand (M here stands for ‘Mille’ – the Roman numeral used to represent 1000). CPM is commonly used by the advertising industry to describe how many people have viewed the banner ad (ad view) or received an “impression” by seeing the ad. In other words, this is the price an advertiser pays for displaying his/her banner 1,000 times.

For example, an advertising rate of CPM, means the advertiser is paying for every 1,000 impressions, or .01 for each banner impression.

CTR or Click-Through:

When a visitor gets interested in promotional message of a banner, he/she clicks on it to learn more and is automatically transported to advertiser’s website. Every time someone clicks on the banner, it is called a “click- through,” and the “click-through rate” is expressed in terms of percentage of users who click on an advertisement (i.e. ratio of ad clicks to ad impressions). In other words, click through ratio is an indication of a banner’s effectiveness.

How Advertiser Pays for Banner Advertisement Universally, there are two modes of payment for banner ad – CPM

Click-Through:

In India – there’s a third mode of payment based on duration of time a banner is hosted on a web-site. Typically, special server-based software called ‘ad-server’ rotates banner ads in specified places of a web-site. It also keep track of impressions, click-thorough and other vital statistics.

In CPM mode of payment – advertiser pays for number of impressions based on an agreed CPM. For example, if a site charges US$ 9 per CPM – for 0 the advertiser gets 0 / CPM *

1000 = 50,000 impressions

If percentage of click thorough is 2 – 4%, advertiser may expect ~ 1000 – 2000 new customers visiting his/her web-site. This is apart from brand building based on number of impressions.

In Click-Through mode – Advertisers pays a fixed fee for every click, no matter what is the number of impressions.

In time-based banner advertisements (typical in India), advertiser pays a fixed fee based on monthly or quarterly rate, irrespective of the number of impression or click-thorough.

Types of Banners Advertisements:

Traditional banner ads were static in nature – usually a .gif or .jpeg image file. With technology advancing – new modes of banner ads appeared in ad scene. Following are some of the popular modes of non-static banner ads
Expanding – Banner gets bigger on clicking – often have a button labeled “Expand”. Rather than jumping to another website – these banners simply open up and reveal more information.

Animated – Common mode of banner ad these days. However, too many images/messages may render such banners hopelessly large in size, slow and downright irritating. Exercise caution on banner design.

Drop-Down Menu – These have embedded HTML and allow the user to choose options from a drop-down menu. This mode of banner is ideal for co-op advertising where several businesses can advertise together.

Interstitial – These appear in a separate window as the website loads. These ads often contain large graphics, animation, and streaming presentations.

Java, Flash, and Shockwave – These allow for rich media presentation including video and audio. Common browser toolbars such as Alexa, Google etc. suppress this type of banners Floating Ads and DHTML – These banners float over the content a website and generally perceived as intrusive, although they do get a high click-through rate.

Unicast – These are just like little TV ads that run in a separate window.

Checklist for Banner Designers:

Here’s a few things to keep in mind while creating banner ad Make it smaller in size: preferably under 12K. This way – the banner will be quick to load.
Keep it Simple: Stay simple. Don’t get too complicated with heavy text and confusing colors.

Make it Easy-to-read:

Always use ALT tags for text display on those surfing without images Verify that the banner clicks-through to the appropriate page on your website Limit your use of animation Include a call to action (e.g. Order Now, Visit Web-Site etc.) Test your banners in different browsers at different screen resolutions.
Get your web designer to make your banner ads for you in a variety of standard sizes if you are not experienced in advertising.

Conclusion:

Lack of targeting and visitor apathy are two major drawbacks of banner ad campaigns. Because of large scale use or misuse – visitors today treat banners as necessary evil and pay little attention. Click through rate of banner ads are much lower compared to other forms of on-line advertisement such as targeted search engine marketing. However, banner ads are more effective in brand building and work very well when the creative is attractive and ad delivery systems can do some targeting.