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How Banner Advertising Works
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Visit any commercial website and you will come across banner advertising for a popular product or service. Chances are you will ignore the banner if it does not interest you, but if the banner is offering something you are looking for you will go ahead and click on the banner. Banners are one of the most popular ways of advertising on the internet, and after text based ads, banners are the leading way to advertise a product or service.
There are two basic techniques a webmaster can employ to advertise a website using banners. The first is to enrol with a free banner exchange program. As the name suggests, a banner exchange program basically involves two or more websites exchanging advertising banners. There is usually no cost involved, but only sites that are considered ‘equally popular’ exchange banners with each other. Banner exchange is the quickest and the most effective way of marketing a website without spending an exorbitant amount on advertising. The problem with banner exchange is that there is no way for a relatively new website to exchange banners with a website that is already popular. Also not all webmasters are comfortable hosting advertisements from other websites.
A popular method of banner advertising is paid banner advertising. Search engines like Yahoo actually allow users to pay for their banner to be displayed on the many affiliate sites that display ads from Yahoo. The websites showing the banners receive a certain amount depending on the number of clicks the banners receive. In addition, a webmaster can choose what kind of websites his banners are displayed on using specific keywords. For example, if a webmaster wants his banners displayed on business sites, he can choose keywords like ‘business’. The cost of advertising is calculated using a concept called CPM (Cost per Million impressions). In essence, the search engine counts how many times in a day a website’s banner has been displayed.
The cost of paid banner advertising depends on how many times a banner is displayed and also on the competitiveness of the keyword targeted. A typical paid banner advertising campaign can cost between $2,000 and $5,000 a month. The concept of paid banner advertising is a success because everyone involved benefits. Despite the feature of streamlining traffic using keywords, there is no way for a webmaster to actually choose the exact website on which his banners are displayed.
Another form of paid banner advertising is directly paying a popular site to display advertising banners. A webmaster can choose to pay a high ranking website a fixed amount per month to display a static banner. For example, a book store can choose to pay an e-learning site for displaying banners for the latest educational books that are available at the book store. The cost of placing a banner advertisement with a popular site like BBC can be very high, and only larger and well established websites can consider static banner advertising on a monthly basis. Eventually, it is up to the webmaster which method of banner advertising he/she wants to utilize.
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