On an average, banners receive a click trough rate of 0.2% - 0.6%, but some banner ads receive a CTR of up to 3%. A well-designed banner can achieve a 1% Click Through Rate (CTR) or even more. Targeted banner impressions often cost $10 per 1,000 impressions ($10 CPM). This equates to an advertising value of $1,000.00 and a cost per click (CPC) of only 10 cents. Added benefits of Branding: Your logo and web address appears 150,000 times on other sites (100,000 on your banner and 50,000 on your pop-under window).

A great benefit of this advertising is the fact that it is inexpensive and never sleeps. Unlike static or mildly animated GIF banner advertisements, typically used in the 468 x 60 banner, banner ads now use flash technology, employ animation and induce more interactivity to engage viewers and extend the impact of every impression.

However, there are a few things that should be kept in mind while creating a banner ad. Firstly you need to visualize a theme for the Banner, determine the Size and Type (Horizontal, Vertical, Square), and select appropriate graphics to be used and lastly the content appearing in the Banner.

The most significant factor in banner advertising is the placement of the banner on the web site that you are advertising on. A user is more likely to click on your ad if it appears towards the top of the web page. A visual banner, usually animated, catches plenty of eyeballs and causes the visitor to click through to your web site. Also a banner having very plain design using blue text on white attracts attention. The blue text being similar to a hyperlink and the white background makes the banner look like content and also enhances the click through rate. You also need to find web sites in a similar niche to yours that are not competitors and negotiate competitive ad rates to display your banner.

Online Banner Advertising is more of an emotional enticement than a logical convincer, nonetheless they are equipped enough to boost your business.