Banner Ad

Published on 01 Jul 2024
By Perion Staff
Home Glossary Banner Ad

Advertising has come a long way since the days of printed ads. With the appearance of digital advertising, banner ads showed their importance in gaining revenue for businesses Banner ads are designed to grab attention and incorporate images, text and multimedia elements to convey promotional messages. 

What is a Banner Ad? 

A banner ad is a rectangular or square online advertisement embedded into web pages, designed to attract traffic by linking to the advertiser’s website. They typically appear at the top, bottom, or sides of a page. 

Banner ads use visuals to promote products or services. They can come in various formats, be on static images, animated graphics, or interactive elements, and are placed at strategic points of the page to encourage clicks. 

Key Characteristics of Banner Ads

Visual appeal – Banner ads use compelling graphics and design elements to capture the viewer’s attention. High-quality visuals are essential to make the ad stand out on a webpage. 

Size and placement – These ads come in various sizes and are strategically placed in high-visibility areas of a webpage, such as the top, bottom or along the sides. They also come in several sizes. 

Call to action (CTA) – Effective banner ads include a clear and concise CTA, encouraging users to take a specific action, like “Click Here”, “Learn More”, or similar. The CTA is a critical component that drives user engagement. 

Interactivity – Some banner ads incorporate interactive elements, such as animations or expandable panels. 

How do Banner Ads Work? 

For publishers, banner ads offer the opportunity to drive traffic to their content and to monetize it. A website often has valuable digital real estate that advertisers can use to generate revenue. The primary goal of a banner ad is to attract the user’s attention and generate traffic to the advertiser’s website or landing page. 

As a type of display advertising, banner ads can be bought via programmatic or direct media buy. Publishers sell ad space to advertisers usually via display networks. A publisher typically signs up with a display network that connects them with advertisers. The network provides a piece of code the publisher adds to their site, and it will display relevant ads automatically. 

Advertisers, on the other hand, pay the display network for the ad placements and set the criteria for the websites displaying their banner ads. The display network pays a commission to the publisher for each click on the ad. 

Display networks calculate the payment to publishers usually through one of these three methods: 

  • Pay per click: The advertiser pays for each click the banner ad receives. 
  • Pay per impression: Also called CPM, or Cost per Mille. The advertiser pays a fixed rate per 1000 impressions the ad gets. 
  • Pay per action: The advertiser pays each time a user completes a desired action after clicking the banner. 

When are Banner Ads Used?

Banner ads are used across various scenarios to achieve distinct marketing objectives: 

  • Brand awareness: By placing banner ads on high-traffic websites, companies can increase visibility and recognition among potential customers. 
  • Lead generation: Compelling banner ads with clear calls-to-action can encourage users to provide contact information or engage with a brand’s offering. 
  • Retargeting: Banner ads can be used to re-engage users who have previously visited a website but did not complete a desired action, reminding them of products or services. 
  • Promotions and offers: Businesses often use banner ads to highlight special deals, discounts or new product launches to entice potential customers. 

Banner Ads Types

Banner ads can be classified by where they appear on the page, their size and shape. 

 

They come in various formats: 

  • Static Banners: Simple image-based ads without animation, providing a straightforward message or promotion. 
  • Animated Banners: Incorporating simple animations or transitions, these ads can capture user attention more effectively than static images. 
  •  Interactive Banners: These ads engage users through interactive elements like quizzes, forms or games, encouraging direct interaction. 
  •  Expandable Banners: Starting as a standard size, these ads expand to a larger dimension upon user interaction, offering more information or engaging content. 
  •  Video Banners: Featuring video content, these ads can deliver more dynamic and compelling messages to viewers. 

Selecting the appropriate banner ad type will depend on campaign objectives, target audience and the desired outcome of the banner. 

Banner Ads Sizes 

The International Advertising Bureau standardized ad sizes, to ensure compatibility across various platforms and enhance the efficiency of ad placements. The most commonly used sizes include: 

  •  Medium rectangle (300x 250 pixels): A versatile size that fits within or alongside content, suitable for both desktop and mobile views. 
  • Leaderboard (728 x 90 pixels): Typically placed at the top of a webpage, ideal for capturing the user’s attention after the page loads. 
  • Skyscraper (120×600 pixels): A vertical ad commonly positioned on sidebars, effective for pages with extensive vertical content. 
  •  Large Rectangle (336×280 pixels): Offers more space for content and visuals enhancing engagement potential. 
  •  Mobile Leaderboard (320×50 pixels): Optimized for mobile devices, ensuring proper display on smaller screens. 

Banner Ads vs. Display Ads

While the terms “banner ads” and display ads” are often used interchangeably, there are distinctions: 

  • Banner Ads are a subset of display ads. Typically static or animated images in standardized sizes and are placed in specific locations on a webpage. 
  • Display Ads encompass a broader range of formats, display ads include banner ads, rich media, video ads, and native ads. They can appear in various placements and may offer interactive elements beyond traditional banner ads. 

Understanding these differences allows marketers to choose the most effective ad formats for their specific campaign goals and target audiences.

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