Banner Advertising

What Is Banner Advertising and How Does It Work?

A rectangular graphic display that spans the top, bottom, or sides of the website or online media property is referred to as banner advertising. For example, a leaderboard is a horizontal banner advertising, whereas a skyscraper is a vertical banner advertisement shown on a web page’s sidebars. Banner advertisements are a typical kind of image-based internet advertising rather than text-based.

The goal of banner advertising is to create a strong brand image and drive traffic to the advertiser’s website from the host website.

Takeaways Important

A rectangular graphic display that spans the top, bottom, or sides of a website or online media property is referred to as banner advertising.

Banner advertisements, which initially appeared in 1994, were the first kind of internet-specific advertising. Today, banner advertising, like practically all internet advertising, uses real-time bidding technology called programmatic bidding, which enables qualified organizations to bid on ad space while a banner ad is loading.

What is the Process of Banner Advertising?

Internet advertising has evolved from a risky venture to a powerful marketing platform for most businesses. As a result, digital advertising revenue in the United States continues to rise by double digits every year, with sales in 2019 topping $124.6 billion.

Banner advertising, also known as display advertising, is made up of static or moving pictures or media often shown in high-traffic places on websites. Banner advertising is appealing since it may aid in brand visibility, lead generation, and audience retargeting (such as giving visitors a chance to sign up for a newsletter or free trial before they click away).

Banner advertising works similarly to traditional advertising in most ways; however, the process by which the advertiser pays the host might vary significantly from conventional ad space sales. The host receives payment for the banner advertisement in one of three ways:

Cost per impression (payment for each website visitor who sees the ad).
Cost per click (payment for each website visitor who clicks just on the ad and visits the advertiser’s website).
Cost per action (payment for each website visitor who clicks on the ad, visits the advertiser’s website, and completes tasks such as filling out the forms or making a purchase).

Traditional banner advertising has evolved to include Facebook Ads & Instagram Sponsored Ads, among other platforms. In the United States, Facebook accounted for around 42% of online display advertising expenditure in 2019. Digital display ad expenditures (including banner advertisements, video, rich media, and sponsorships) surpassed search-based ad spending in 2016 and is expected to continue to rise. Banner advertising accounts for 31% of all internet ad expenditure in 2019. In 1994, the first banner advertising was placed on the wired.com (then known as HotWired) website.

Technology for Banner Advertising

Advertisers and websites looking to sell advertising are matched via ad networks. They maintain track of available advertising space and compare it to advertiser demand. A central ad server, which picks particular adverts suited to the website’s visitor based on keywords from the visitor’s search and website viewing activity, or depending on the overall context of the host website content, is the technology that allows ad networks to achieve this.

Real-time bidding technology termed programmatic bidding enables permitted organizations to bid on ad space within the time it takes for a banner ad to load, which is presently used in banner advertising and nearly all internet advertising.

Personalization—the capacity to make customers feel like you’re speaking directly to them—is a hot topic in content marketing. As a consequence, tailored banner advertising has become more popular.

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