Among various types of advertising platforms, banner advertising occupies an important position. This type of advertising gained momentum in 1990s when internet became popular. Banner advertising is a type of advertising in which banner is placed on a web site.

By clicking this banner, a person can directly go to the website that is offering particular product. Though it might look like similar to advertisements placed in magazines, it is the single click response that makes it more effective and desirable.

Now a day, web sites are bombarded with banner advertisements as companies are now finding it very easy to promote products. One of biggest benefits of banner advertising is that businesses are able to get global response rather than a local response, as happens in traditional form of advertising. However, concept and objective for both are same.

Banner advertisements are made attracting through use of punch lines, colors, graphics etc. Sometimes, animation is also used for attracting users. Concept on which banner advertising is based is ‘pay per click’ generally.

Whenever any banner on a particular web site is clicked, owner or publisher gets some money. It is not necessary that sale of product occurs but there must be a click on the banner. Income of publishing web sites depend upon the advertising rates agreed upon by two parties.

For making banner advertising more beneficial, companies are now coming out with picture of the product. This is done so as to ensure that if a user does not click on the banner at some point of time, he may carry the image of product and may search for the product directly.

As said, web sites in present times have been bombarded with banners and up to some extent, banner advertising has lost its effectiveness. Web surfers are now ignoring the banners. They have got annoyed with banners that are placed on the web sites. Annoyance enhances when a user has to first close the enlarged banner himself.

In many cases, it has also been found that link is not proper. That is, on clicking the banner, user is taken to some other web site that is not at all related to the product. This makes user angry sometimes. If that happens with every web surfer, banner advertising would definitely loose its effectiveness and companies may not like to place their banners on the web site any more.

Effectiveness of banner advertisement can be found on basis of number of times for which banner has been clicked and the user taken to definite page and the ratio between these two.