Banner advertisements can be a great tool to start or supplement your online advertising campaign since they are usually a low-cost and affordable alternative to traditional types of advertising. The following tips will help you understand what banner advertisements are and how they may be useful for your business.
What is a banner advertisement?
Banner advertisements (or banner ads) are the advertisements you see displayed on websites that contain a company’s name, logo, and/or short advertisements. They usually have a hyperlink that goes to the website of the advertiser’s choosing. Banner ads are usually displayed in standard sizes. However, as they gain popularity banner ads are beginning to vary in size and shape and accordingly, cost per advertisement. Some of the more popular ad sizes are leaderboards (728 x 90 pixels), banner (468 x 60 pixels), and half banner (234 x 60 pixels).
Why use banner advertisements?
Banner advertisements can be used in a variety of ways to advertise your product or company. For new companies, they are a great tool to begin branding or brand recognition. Customers may not be familiar with a new company’s logo, products, or services so when they see a banner ad displayed for that company on a website it helps customers become familiar with the brand.
Banner advertisements are also helpful in getting more traffic to your website. Each time a customer clicks on the ad, it will have a link that takes them to a website you choose – usually your website or the website for a product you want promote.
How much do banner advertisements cost?
Banner advertisements are usually a more affordable, low-cost means of advertising. Payment may vary depending on what website you use to host the banner ads. For example, some websites charge per view or impression, some websites charge by clicks (each time someone clicks on the banner ad), and some websites charge a flat rate.
Determining which rate or type of payment is best for your business depends on what you are trying to achieve with your advertisement. If your goal is to get more traffic to your website, how many clicks your ad receives may be a better measure of success for you. If you simply want customers to become more familiar with your brand or you want to advertise a special, the number of impressions might be more useful for you.
What does CPM, CPC, etc. mean?
There are several different terms used to measure the effectiveness of banner ads and the ways in which you pay for them. Here are just a few of the basic terms to know:
Impression: Each time a banner ad or advertisement is shown on a website, it is called an impression.
CPC (Cost Per Click): The cost an advertiser pays the website host company each time a customer clicks on the banner ad.
CPM (Cost Per Million): The cost of the advertisement for 1000 impressions.
CTR (Click Through Rate): The percentage of times customers click on the advertisement (the number of clicks divided by the number of impressions). For example, if 5 people click on the advertisement, and it had 100 impressions, the CTR would be 5 percent.