Banner ads are intended to generate traffic to a website by linking to it. Also, web banners can function as regular, print advertisements: inform, notify about a new product, increase brand awareness and so on. However, most of banners are clickable and their main function is to get clicked on. But we’ll talk about banner effectiveness in a few moments.
Generally, banner ads are placed in high traffic websites that offer interesting or useful content. But, besides the traffic, there are other important aspects to be taken into consideration when choosing a website to advertise on. One of these aspects is the website’s target, which has to more or less match with the banner’s intended audience.
One advantage of the online advertising over the traditional one is that its effectiveness can be easily measured. Regarding banner ads, the main effectiveness indicator is the click-through rate. The click-through rate (CTR) is calculated by dividing the number of users who clicked on the ad by the number of times the ad was displayed (impressions). For instance, one might say that a certain ad has a click-through rate of 3%. That means that out of 100 impressions delivered, the banner was clicked on three times.