Banner Ads pioneered the world of affiliate marketing. The first banner ads to hit cyber space appeared in 1994. Presently, online marketers are becoming more skilled and developing more advanced methodologies in online advertisement. Your average user views banner ads as mere nuisances and almost always ignores them. This is a proven fact as figures those banner ads generally have a low CTR (Click Through Rate), the average being less than .5 percent which works out at about 1 click per every 200 visitors.
In the past, only the larger corporations with substantial advertising budgets could afford to harness the power of banner advertisement. Today, virtually anyone can use banner advertisement through tons of websites selling in bundles of page views or impressions. However with scenarios like 1,000 page views at a cost of $4 with a click through rate of .5 percent, this would essentially translate into a measly 5 clicks, which is hardly worth the amount being paid out.
These fairly insignificant numbers have been enough to coerce advertisers into rethinking their current strategies and finding other advertisement avenues. A more popular method used today would be contextual advertising, a system which was originally developed by Google through their AdSense Program, which displays ads on websites advertised through their search engine, as well as partner sites. This methods essential purpose is to ensure the advertiser is able to reach their target market at a more reasonable cost per click.
With this, has banner advertising lost its appeal? Although it has in essence lost a large part of its appeal, its effectiveness can still be harnessed with a unique and elaborate banner marketed on the most relevant website.
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