What Is Banner Advertising??

Banner Advertising is probably one of the most popular forms of online advertising and is used widely for product or website promotion. You can see banners in probably every website you visit. Let us take a detailed look at exactly what is banner advertising and its different methods.


What is Banner Advertising??

Banner is a method of advertising your website or products, by placing rectangular graphic displays on different websites. These displays would be highlighting your products or websites and the objective of using these displays or banners is to attract the visitors of the host website to your product/website.

Banners are normally of two types:-

  1. A rectangular display which stretches across the top or bottom of a website. These are called Leaderboards.
  2. A rectangular display which stretches on the left or right sidebars. These are called Skyscrapers.

Banner Advertising Payment Methods

The first question that would come to your mind is why would some other website host my website’s banner?? The reason is simple, they would be paid for advertising my website in theirs.

There are different methods of arriving at a payment criterion but there are 3 most popular methods of fixing the advertising rate:-

  1. Cost per impression (CPM)- In this method, the host gets paid for every website visitor who sees the advertisers ad. They are normally charged per thousand impressions. For example, a CPM 0f $3 for a banner ad means that the host would charge $3 per 1000 times the ad is displayed on his site.
  2. Cost per click (CPC)- In this method, the host gets paid every time a visitor clicks on the advertiser’s banner. This means that the advertiser would be paying the host for visitors of his websites who visit the advertiser’s website. The rates are higher than CPM because here you are paying for traffic to your website which gets diverted from the host website.
  3. Cost Per Action (CPA)- In this method, the host gets paid when a visitor from his site clicks on the banner and then goes to the advertiser’s site and completes some action. For example, the visitor clicks the banner and goes to the advertiser’s site and then fills up an enrolment form there. This is the costliest method of banner advertising because here you are paying for a specific action on your site to the advertiser.

The methods you use will primarily depend on the product or campaign. If you require a huge traffic to your site, then you can focus on CPM or CPC, but when you are promoting an expensive or an unusual product and you are only concerned about sales, then you go for the more costly CPA method.

There are other methods of advertising also, but these 3 are most commonly used.


In a nutshell

Banner advertising is probably one of the most popular methods of online advertising. They are incredibly effective if the campaign and the ads are designed properly. But if the ads are not designed properly or are confusing then you tend to lose a huge amount of money in advertising costs. Thus it is important that you are very clear on how you plan to build and post your banners.

Hopefully, this article would have helped you in understanding what is banner advertising and its various methods. You can enroll in my online course on Understanding Scams and learn to build your own online business for free. You can access the course from my Homepage.

Kindly leave a comment below in case you need any more clarification or have any question to ask and I will get back to you soon.

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