Banner Advertising is a form of Internet Marketing which involves embedding an advertisement on to a web page with the goal of attracting the Internet user to the website of the advertiser. Banner Advertising today often involved interactive rich media to maximise the click through rate of the advertiser.

Banner Advertising is a form of Internet Marketing which involves embedding an advertisement on to a web page with the goal of attracting the Internet user to the website of the advertiser. Banner Advertising today often involved interactive rich media to maximise the click through rate of the advertiser.

The typical size of a banner advertisement is 468 X60 pixels. A banner advertisement is displayed each time the banner is loaded into a web browser or what is called an impression. Most websites changed the advertiser a $ rate based on per 1000 impressions.

For example if the cost was $10 per 1000 impressions, the advertiser pays $10 each time the web page is opened 1000 times irrespective of whether the user clicks on the banner advertisement. This is an important point to note as you can be paying for banner advertising even when people are not visiting your website.

This is why click through rate and analysis is very important when analysing the profitability of banner advertising. The average click through rate as reported per Double Click for banner advertising was 0.35%. This means the advertiser would receive on average 3.5 clicks per 1000 impressions.

So if you were paying $10 per 1000 impressions your cost per click is A$3.33.

Based on these numbers it is very important if you are considering banner advertising that you maximise your position on the web page by ensuring you are placed in a prominent position, plus your banner advertisement is eye-catching and relevant. You also need to understand the demographic of the audience visiting the web page to ensure you are reaching the right profile of potential customer.

ROI.com.au can help your business implement a standard methodology for analysing the effectiveness of your banner advertising and all other types of online marketing.

Web banners function the same way as traditional advertisements are intended to function: notifying consumers of the product or service and presenting reasons why the consumer should choose the product in question, although web banners differ in that the results for advertisement campaigns may be monitored real-time and may be targeted to the viewer's interests.

Many web surfers regard these advertisements as highly annoying because they distract from a web page's actual content or waste bandwidth. (Of course, the purpose of the banner ad is to attract attention. Without attracting attention, which makes it annoying, it would provide no revenue for the advertiser or for the content provider.) Newer web browsers often include options to disable pop-ups or block images from selected websites. Another way of avoiding banners is to use a proxy server that blocks them, such as Privoxy.

Web banner adverts are restricted by high cost and limited physical banner area.

Click-through rate or CTR is a way of measuring the success of an online advertising campaign. A CTR is obtained by dividing the number of users who clicked on an ad on a web page by the number of times the ad was delivered (impressions). For example, if your banner ad was delivered 100 times (impressions delivered) and 1 person clicked on it (clicks recorded), then the resulting CTR would be 1%.

Banner ad click-through rates have fallen over time, often measuring significantly less than 1%. By selecting an appropriate advertising site with high affinity (e.g. a movie magazine for a movie advertisement), the same banner can achieve a substantially higher click-through rate. Personalized ads, unusual formats, and more obtrusive ads typically have higher click-through rates than standard banner ads.

CTR is most commonly defined as number of clicks divided by number of impressions and generally not in terms of number of persons who clicked. This is an important difference because if one person clicks 10 times on the same advertisement instead of once then the CTR would increase in the earlier definition but would stay the same in term of later definition.