What is 'Banner Advertising'

Banner advertising is a rectangular graphic display that stretches across the top or bottom of a website or down the right or left sidebar. The former type of banner advertisement is called a leaderboard, while the latter is called a skyscraper. Banner ads are image-based rather than text-based and are a popular form of website advertising. The purpose of banner advertising is to promote a brand and/or to get visitors from the host website to go to the advertiser's website.

BREAKING DOWN 'Banner Advertising'

The host is paid for the banner advertisement through one of three methods: cost per impression (payment for every website visitor who sees the ad), cost per click (payment for every website visitor who clicks on the ad and visits the advertiser's website) or cost per action (payment for every website visitor who clicks on the ad, goes to the advertiser's website and completes a task such as filling out a form or making a purchase).

RELATED TERMS
  1. Impression

    A metric used to quantify the display of an advertisement on ...
  2. Cost Per Thousand - CPM

    The price of 1,000 advertisement impressions on one webpage. ...
  3. Media Buy

    The purchase of advertising from a media company such as a television ...
  4. Cost Per Click - CPC

    A website that uses CPCs would bill by the number of times a ...
  5. Advertising Appropriation

    The portion of the total marketing budget that is allocated to ...
  6. Advertising Federation Of America ...

    A regional advertising group based on the U.S. East Coast that ...
Related Articles
  1. Small Business

    How The Internet Web Ad Industry Works

    Over the past 10 years, advertising strategies have evolved as a result of technological development as the internet has provided new channels for advertisers to reach a larger audience.
  2. Small Business

    Bye, Mad Men: How the Net Is Changing Advertising (FB, TWTR)

    The Internet and digital media are changing the way companies advertise and market themselves. More targeted, varied and faster advertising is possible.
  3. Small Business

    Trends And Growth In The Digital Advertising Industry

    The rapidly expanding digital advertising industry is leading a shift towards content and demanding forced innovation.
  4. Small Business

    How is Programmatic Advertising Changing Media?

    Understand what programmatic advertising is as well as the technology that drives it. Learn about the top four ways programmatic advertising is changing media.
  5. Small Business

    Digital Advertising Is The Future, But Why? (ZNGA, GOOG)

    Digital advertising has outgrown the internet.
  6. Investing

    Why Facebook Is Free to Use (FB)

    Learn why Facebook is free to users, and understand how the company makes more money by charging advertisers than it would if it charged users.
  7. Financial Advisor

    Ad Blockers Could Spell A Boom For Publishers  

    In a free content world, largely subsidized by advertising, ad blockers can eat into publishing revenues. But, publishers can still stand to gain.
  8. Investing

    Mobile Advertising to Surpass Desktop in 2017

    Arriving a year earlier than previously predicted, mobile advertising will overtake the desktop advertising spends in 2017
  9. Small Business

    Why Every Small Business Needs A Website

    The reality of living in the twenty-first century is that customers find business information and product offerings predominantly on websites, and small businesses without an online presence ...
  10. Small Business

    What Is Cost Per Thousand?

    Cost Per Thousand, or CPM, is a price Internet publishers will charge for every 1,000 advertisement impressions recorded on a webpage.
RELATED FAQS
  1. What are the key differences between marketing and advertising?

    Understanding the role advertising plays in the marketing mix will help business owners define their promotional strategies ... Read Answer >>
  2. How important is advertising revenue in the Internet sector?

    Learn about the importance of advertising revenue in the Internet industry. Find out how much Internet firms rely on advertising ... Read Answer >>
  3. Can I make money advertising on my car, or is it a scam?

    Are car wrap advertising companies legitimate? Some companies are scams, but some car wrap companies offer legitimate ways ... Read Answer >>
  4. What metrics are used to gauge the effectiveness of a marketing strategy?

    Understand why companies need sound marketing strategies and how they are able to accurately measure effectiveness of marketing ... Read Answer >>
  5. What is the "bait & switch" technique?

    The bait and switch is a advertising technique which can be considered illegal, but in most cases is merely looked upon as ... Read Answer >>
  6. Michael Feinberg sends a memo to his star investment advisor ...

    The correct answer is a). Consider the intended target audience when deciding if a communication constitutes advertising. ... Read Answer >>
Hot Definitions
  1. Federal Direct Loan Program

    A program that provides low-interest loans to postsecondary students and their parents. The William D. Ford Federal Direct ...
  2. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  3. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  4. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  5. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  6. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
Trading Center