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Banner Ads: Smart Advertising or Spam

There is a fine line between advertising and spam and unfortunately many business owners do not understand the difference between the two. This is important because while a clever, well planted Internet marketing campaign can help to attract new customers and keep existing customers loyal, spam is likely to alienate both new customers and existing customers. This can be extremely damaging to profit margins for the business owners. Let’s take a look at banner ads and how it can quickly cross the line from clever advertising to spam.

Banner ads are one of the most popular strategies which accompany an Internet marketing plan. These ads usually appear at the top of websites and span the width of the website. It is from this appearance that they earned the name banner ads but actually banner ads can refer to ads of a variety of different sizes and shapes which appear in an array of different locations on a website. In many cases the business owner purchases advertising space on these websites but the banner ad may also be placed as part of an exchange or an affiliate marketing campaign. Banner ad exchanges are situations in which one business owner posts a banner ad on his website in exchange for another business owner posting his banner ad on the other website. These agreements may be made individually between business owners with complementary businesses or as part of exchanges facilitated by a third party. In the case of affiliate marketing, an affiliate posts and advertisement for your business in exchange for compensation when the banner ad produces a desired effect such as generating website traffic or generating a sale. The terms of these agreements are determined beforehand and are generally based on a scale of pay per impression, pay per click or pay per sale or lead.

Now that you understand what banner ads are, it is also important to understand how they can be overused and appear to be spam. Intelligently placing your banner ad on a few websites which are likely to attract an audience similar to your target audience is smart marketing, placing your banner ad on any website which will display the ad regardless of the target audience can be construed as spam. Internet users who feel as though your banner ads are everywhere they turn will not likely take your business seriously and are not likely to purchase products or services from you as a result of your banner ads.