Banner Advertising Prices

Banner Advertising Costs – An Overview

Is banner advertising a worthwhile investment for your business? As early as 2001, some of the best-
known business authorities were predicting the death of banner advertising. That was the year that
Forbes, the business/money juggernaut, stated that banner advertising prices were falling as the
effectiveness of banner ads declined. Forbes was wrong. By 2011, display ads – another name for
banner ads – were among the top-selling types of online advertising, and with good reason. Between
rising click-through rates and the additional benefits of increased visibility and better branding, banner
advertising has proved to be one of the most cost-effective ways to advertise your products and services
online.

The Cost of Banner Advertising

Banner ad campaigns are priced in one of two ways – cost per impression or cost per click. Each type of
pricing has its benefits and drawbacks.

With a cost per impression banner advertising contract, you’ll pay a flat rate, usually on a monthly basis,
for a specified number of impressions. Most of these banner advertising contracts are for 10,000 or
more impressions per month and will specify the banner advertising prices in terms of PPM – price per
thousand impressions.

When you choose cost per click advertising, you only pay when a website visitor clicks on your ad and
is delivered to your website. While that may seem more cost-effective, pay per click banner advertising
can actually end up costing you considerably more than you expected, especially if a banner ad is wildly
successful in drawing clicks but your website doesn’t convert well. Generally, your banner advertising
contract for pay per click advertising will cite the price as CPC – cost per click.

When determining banner advertising best prices for your company, be sure to consider factors aside
from the actual cost per impression or per click. As with anything else, you get what you pay for. It’s
worth paying extra to work with a banner ad agency that can guarantee you good ad placement,
widespread coverage and exposure to the right demographics for your products.