One of the oldest forms of Online Advertising, it’s appeal lies in it’s simplicity.
A banner for your Brand with an appealing image or intriguing headline is created on relevant websites. Users are directed towards your website by clicking on the banner, through which a purchase may/may not be made. Although simple, direct and extremely efficient in directing traffic to your website, banner ads have reduced in popularity due to increased exposure and irritation with online advertisements. Users develop a ‘banner blindness’ so only a minority would actually pay attention to the advertisement and then click on it. Considering the realities of modern advertising, it would be prudent for the Brand to ensure that expenditure on Banner Ads are controlled, especially if you are paying a certain amount per impressions. (Impressions denote the number of times your ad would be displayed, accumulating charges regardless of whether anyone actually clicks on your advertisement).
A major advantage of online advertising is the quick promotion of product information without geographical boundary limits. A major challenge is the evolving field of interactive advertising, which poses new challenges for online advertisers.
Online advertisements are purchased through one of the following common vehicles:
1. Cost per Thousand (CPM): Advertisers pay when their messages are exposed to specific audiences.
2. Cost per Click (CPC): Advertisers pay every time a user clicks on their ads.
3. Cost per Action (CPA): Advertisers only pay when a specific action (generally a purchase) is performed.
Examples of online advertising include banner ads, search engine results pages, social networking ads, email spam, online classified ads, pop-ups, contextual ads and spyware.