how banner advertising works
internet advertising has gone from an uncertain bet to serving as the primary platform for most companies marketing in the u s the growth in digital advertising continues to grow by double digits on an annual revenue basis with 2020 revenue report at 138 9 billion 1banner advertising also called display advertising consists of static or animated images or media and is usually placed in high visibility areas on high traffic websites banner advertising is attractive because it can help create brand awareness generate leads and re target an audience such as giving a visitor a chance to sign up for a newsletter or free trial before they click away banner advertising functions mainly the same way as traditional advertising however the method by which the advertiser pays the host can differ greatly from traditional ad space sales the host is paid for the banner advertisement through one of three methods cost per impression payment for every website visitor who sees the ad cost per click payment for every website visitor who clicks on the ad and visits the advertiser s website or cost per action payment for every website visitor who clicks on the ad goes to the advertiser s website and completes a task such as filling out a form or making a purchase traditional banner advertising has expanded to other forms such as facebook ads and instagram sponsored ads facebook is estimated to account for roughly 42 5 of online display advertising spending in the u s in 2022 2 the trend in online advertising has seen digital display ad spending including banner ads video rich media and sponsorships continue to grow as of 2020 31 5 of all online ad spending goes to digital advertising which includes banner ads 3the first banner advertisement was deployed in 1994 on the website of wired com then called hotwired 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 4banner advertising technologyad networks are in charge of matching advertisers to websites that want to sell advertising they keep track of what advertising space is available and match it with advertiser demand the technology that enables ad networks to do this is a central ad server which selects specific ads that are tailored to the website s visitor based on keywords from the visitor s search and website viewing behavior or based on the overall context of the host website content banner advertising and virtually all online advertising currently utilizes real time bidding technology known as programmatic bidding which allows approved companies to bid on ad space during the time it takes for a banner ad to load trends for content marketing revolve around personalization the ability to make consumers feel as though you are speaking directly to them as a result targeted banner ads have gotten ever more common 