Banner Advertising

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What is the banner ad?

Banner advertising refers to the use of a rectangular graphic display that extends at the top, bottom or sides of a website or online multimedia property. The horizontal type of banner ad is called a ranking, while vertical banners are called a skyscraper and are positioned on the side bars of a web page. Banner advertising is based on images rather than text and is a popular form of online advertising.

The purpose of the banner ad is to promote a brand and / or get visitors to the host website to visit the advertiser’s website.

[Fast Fact: The first banner advertisement was deployed on Wired Magazine’s website in 1994 (then called hotwired.com); the banner read “Have you ever clicked your mouse right here? You will,” and the ad then sent the user to a campaign for AT&T.]

The basics of the banner ad

Internet advertising has moved from an uncertain gamble to the main marketing platform for most companies. In the U.S., growth in digital advertising continues to grow double-digit on an annual revenue basis, with 2020 revenue exceeding $ 160 billion.

The banner ad, also known as display advertising, consists of static or animated images or media and is usually placed in high-visibility areas on high-traffic websites. The banner ad is attractive because it can help create brand awareness, generate leads and target an audience (for example by giving a visitor the opportunity to sign up for a newsletter or free trial before click).

Banner advertising works primarily in the same way as traditional advertising; however, the advertiser’s method of paying the host may differ significantly from traditional advertising space sales. The host is paid for the banner ad 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 ad and visits the advertiser’s website) or cost per action (payment for each website visitor who clicks on the ad, goes to the advertiser’s website and performs a task, such as completing a form or make a purchase).

The traditional banner ad like the example above has spread to other forms, such as Facebook ads and Instagram sponsored ads. Facebook and Twitter account for about a third of online display advertising spending. The trend in online advertising has seen spending on digital display advertising exceed that of search-based ads in recent years. In 2020, about one-fifth of all online advertising spending is spent on digital ads, such as banner ads and similar ads.

Key points to remember

  • Banner advertising refers to the use of a rectangular graphic display that extends at the top, bottom or sides of a website or online multimedia property.
  • Banner advertising was the first form of Internet-specific advertising that appeared in 1994.
  • Today, banner advertising, and virtually all online advertising, currently uses real-time bidding technology known as programmatic bidding, which allows approved businesses to bid on ad space over time. necessary to load an advertising banner.

Banner advertising technology

Ad networks are responsible for matching advertisers to websites that want to sell advertising. They keep track of the advertising space available and adapt it to the demand of advertisers. The technology that allows ad networks to do this is a central ad server, which selects specific ads tailored to the website visitor based on keywords derived from the visitor’s search and website viewing behavior or based the general context of the content of the host website.

Banner advertising, and virtually all online advertising, currently uses real-time auction technology known as programmatic auctions, which allows approved businesses to bid on ad space for the time it takes to load ‘an advertising banner. Today’s content marketing trends revolve around personalization or the ability to make consumers feel like you’re talking to them directly. As a result, targeted banner ads are becoming more common.

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