Banner Advertising: Basic Terminology And How It Works

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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Tagged with: "banner ads bacics" • "banner adverising" • "banner advertisement" • "banners ads" • "what is banner advertising" • jiri majkus
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Jiri this is a lot of good detailed information about banner ads. Something admittedly I don’t use but if I ever decide to I know what post to find. Thanks for doing the homework for us.
Steve Shoemaker
steve shoemaker´s last blog ..Now GROW Your Internet MLM Business
Thanks Steve, I am glad you like it. One of the next articles will be how to find a place where to put banner ads.
Thanks for stopping by.
Jiri
Jiri´s last blog ..Banner Advertising: Basic Terminology And How It Works
Hi Jiri,
I really like this information! I’m always looking for other ways to market and now I’m going to add this to my strategic list.
Thanks Jiri!!
Sherman
Sherman Smith´s last blog ..EVERY SUCCESSFUL PERSON HAD ONE OF THESE…….
Jiri,
This is a list that I definitely needed. Thank you for the information
and will have to use it to leverage my banner skills.
I am printing this out and reading this one again with a highlighter!
Have a great day,
Tommy D.
Tommy DiPietro´s last blog ..How I Got Mike Dillard To Personally Review My MLM Sales Strategies for the Home Business Owner Blog
I am glad that I can help you with your marketing and business.
Thanks for stopping by.
Jiri
Great explanation Jiri, thanks for sharing this info with us!
Hi Jiri,
that is a complete list of what people need to know in the field of banner advertising. As far as I’m concerned, I learned a lot ! Thanks for sharing this great information.
Take care
Oliver
Oliver Tausend´s last blog ..Behaviour in Facebook groups