How does banner advertising work?

A graphic display positioned on the sides, top or bottom of a web page is a banner advert. Vertical banner ads are usually referred to as skyscraper ads and horizontal banners are called leaderboards.
An introduction to banner advertising

Also known as display advertising, banner advertising is typically positioned in highly visible areas of a web page that receives a lot of traffic where it is able to build brand awareness and generate leads. Banner advertising can also be used within re-targeting strategies to boost conversions.

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As is the case with traditional advertising, advertisers pay the host to display their banner ads. There are several different methods that may be used here, including cost-per-click agreements for which the advertiser will pay the host for every visitor who clicks on the banner.

Other methods include cost-per-impression for which the advertiser will pay for every visitor who views the banner, and cost-per-action for which advertisers will only pay the host each time a visitor goes on to complete a task, such as making a purchase or filling out a form, after clicking on the banner ad.

The value of banner advertising

Statistics show that between 2020 and 2023, Google’s advertising revenue increased from $146 billion U.S. dollars to more than $237bn.

As banner ads utilise images more prominently than text, they have become a popular type of online advertising due to their ability to easily capture attention when they have been designed well. HTML 5 ads, examples of which can be seen at https://thebannermen.com/banners/animated-ads/html5/, tend to perform consistently well as they use eye-catching animations to capture and hold the attention of a viewer.

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Currently, there is a real push towards banner ad personalisation, as this is the best way to encourage engagement and make an audience feel as though they are being addressed directly.

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