Banner advertisements are the most useful tools or format used in online advertising. These creative pieces of text and animated graphics are the most appealing elements on a web site. Without banner ads web pages look dull, much like the search results pages. It is because of their attractive appeal that web banner have received major attention in the online advertising industry.

Banner advertising is one of the popular ways by which site owners generate revenue on their web sites. These advertisements appear at different locations on the web page and are often placed at spaces where there is maximum visibility and attention of the user. Banner ads appear in many sizes and their presentation varies according to the elements they constitute. They can appear as static images or can have dynamic and interactive text and graphic elements.

Other than size and elements, banner ads may also be available as expandable banners, drop down banners and scrolling banners.

Compared to other advertising methods, banner advertising has proved to be more effective. The click through rate for banner ads have been recorded to be from 0.5 per cent to 2 per cent. Even this small percentage can be helpful when you are having large volume of traffic on the web site.

Many popular brands like IBM, Pepsi, Toyota, etc have approved banner advertising. The campaigns have been found as quite rewarding. With that banner advertising companies have become more interested in building the identity of the brands and maintaining the brand image of popular brands. With popular brands as their clients, online advertising agencies and web site publishers are both benefiting immensely.

As per some studies, banner ads have been found to be as effective as TV ads. The recall in case of banner ads have been measured to be similar to that of a television commercial. This has yielded banner advertising a great thrust in the sub field of display advertising. Even if the clicks on the banners are less, these advertisements can be used to increase the visibility and physical presence of the brands on the web.