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Banner Ads Basics: How It Works For Online Business

Guest post by: Jiri Majkus

Article Overview: Banner advertising is time saving form of marketing and usually it is a low cost marketing. It is a quick way to start driving targeted traffic to your website. Banner ads are very popular among internet marketers.

Banner Ads Basics: How It Works For Online Business

One of the effective strategies which you should include in your marketing portfolio is definitely banner advertisement. It is a quick way to start driving traffic to your website. So let's take a look what is exactly is.

What is banner advertisement:

A web banner or banner ad is form of advertising that can be very helpful in promoting your product, service or business. This form of online advertising entails embedding an advertisement in to a web page. It is intended to attract traffic to a website by linking to the website of the advertiser. The advertisement is constructed from an image, Java script program or multimedia object. Images are usually in high-aspect ratio shape. These images are usually placed on web pages that have interesting content such as newspaper, ezines, article sites, social networks...

Basic terminology:

• Impression: Each time your banner loads on a website, this is considered an impression.

• Click: Each time someone clicks on your actual banner, this is counted as a click.

• Conversions: When someone fills out the form on your website, this is considered a conversion (lead)

• CPM - Cost per thousands: This is a method of measuring how much you will pay for a banner ad. CPM means you are charged for every thousands impressions. A $2 CPM means you pay $2.00 for every thousands impressions your banner ads receives.

• CPA - Cost per action: This is a method of measuring how much you will pay for a banner ad, based on actions taking. On a action can be considered a click, or it can be considered a conversion. When you pay on CPA basis this means that you pay if someone click on you banner ad.

• CTR - Click through rate: This is a ration of impressions to click. For example, if there are 1000 impressions on a website and 20 people click on the banner ad, that would be a CTR of 2%.

• Cost per conversion: How much it costs you to get one lead. If you spend $50 and you received 10 leads, than your cost per conversion is $2.5. If you specified action as a click and you spend $50 and you receive 200 clicks, than your cost per click is $0.25.

• Publisher: These are the websites that accept advertising on their sites

• Advertiser: The individual or company placing the banner advertisement.

Why use banner ads:

If you find a good quality website which has relevant content to your offer you will drive very targeted traffic to your website. Banner advertising is time saving form of marketing and usually it is a low cost marketing. Tip: us nice banners for higher conversions.

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Article Tags: advertiser, aspect ratio, banner ad, banner ads, banner advertisement, banner loads, conversion, conversions, cpa, cpm, high aspect ratio, image java, impressions, java script program, multimedia object, object images, shape, social networks, web banner, web pages



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