A banner ad is a Graphical promotion used on sites as a kind of advertisement. Banner advertisements can come in almost any size you need, but the accepted standard is 468 pixels wide by 60 pixels high. Because of the widespread acceptance of the size, the identical banner ad may be used on many websites without needing to reconfigure the size and design. There’s a great deal Of controversy concerning the effectiveness of banner ads. Some folks swear by them, others swear at them, saying they do not work worth a damn. Although click-through rates have gone always down, the same can be said of banner ad rates. The typical click-through rate hovers somewhere around 0.5% range for banner advertisements. But, with a fantastic banner design and positioning it is still possible to achieve a great return on investment, by combining below-average advertisement prices and above-average response prices.
Banner ads are sold in any one of three ways: cost per 1,000 impressions CPM, pay per click PPC, or pay per action PPA. Purchasing a PPC banner is Generally more expensive than the CPM basis, but may be more successful because people really take some sort of activity by clicking though to your website. Among the downsides to PPC banner ads is that one individual may click on an advertisement more than once and you get billed for each click. However some ad providers monitor IP address, and only charge one click per computer each day. Most places though do not do so for the simple reason that it means less money in their pocket. The effectiveness of Cost per impression banners may fluctuate quite a bit, depending upon their placement on the page and you generally pay the same if the banner is displayed prominently at the top of the page, or concealed in a bottom corner.
Most CPM banner websites rotate the banner ads throughout the site (Run of Site – ROS) and throughout the webpage. in banner video to reach general audiences are usually priced at 1 to 10 CPM, while targeted websites may get CPM rates of 30 – 50 or more. Despite the fact that it may not look like much, banner ads can be very expensive. Do the math with me. If you are paying 10 CPM and the click-through speed is an industry average of 0.5%, then it costs you 10 for 5 people to your website, or 2 per person. If 2% of the traffic to your website makes a purchase, then your client acquisition cost (CAC) is 100. That means for each transaction you do you will need to pay out 100 in advertising fees. Some sites do not even can convert 2% of visitors into customers, especially when they arise from a banner ad. In order for banner Ads to work, you will need to combine above average click-through prices, with below average banner ads and market either a high-ticket item, a product with a high markup or have a solid back-end set up so that you earn money on the second, third, fourth and even twentieth sale. Pay per action banners Are usually the most expensive, as you pay only for a desirable action. This may be a merchandise purchase, having someone sign up for an email list or any other actions you desire. PPA banners can be quite much like a affiliate program and use the identical sort of tracking.