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Selling Banner Ads

One of the more popular ways to make money off the Internet is to sell banner ads, but getting started in the banner ad business can be confusing. ISA is here to help. On this page you can find find some basic facts about selling and implementing banner ads, as well as links to some of the better advice resources on the Web.

What is a banner ad?

By definition, a banner ad is a graphic or image that is used on a Web page for advertising purposes. Most of you are probably familiar with the 468 x 60 pixel "full banner" that you see at the top of pages. However as you can see on this page, there are many other standard sizes that can be referred to as banner ads. Top of page

How can I put ads on my site?

Probably the simplest method, and one that is ideal for small sites, is to have the client send you a graphics file that meets your specifications — for instance, a 468 x 60 graphic with a file size under 20 kilobytes. (File size is important. A large file can keep your page from downloading quickly.) They will also need to send you a Web link to where they wish people to go on their site. After that, it's as simple as placing the graphic on the page and linking from it to your client's site. Top of page

How can I make ads rotate?

You've seen rotating ad banners before. They're the ones that change each time you go back to a page. A common formula on larger sites is to have four ad "slots," with four ads in the rotation and each ad showing up once every four times the page is viewed. One way to do this trick is to use a Javascript that rotates the banners. However, you should also take into account how many times users are viewing the page. An exclusive ad may be more attractive than one that will only be seen part of the time. Another way to rotate ads is to do a timed rotation, where the ads change after a certain amount of time. Javascript can also be used for this function. Top of page

Who will buy the ads?

Who uses your site? To create a good match between advertising client and Web users, stop and consider who uses your site. What do they want to know about? If you are running a Section site, then it is likely you can get a pretty good picture just by knowing your members. Possible advertisers include Instrumentation & Control companies, but could just as easily be a life insurance company or restaurant. The key will likely be "local," however, as your site will bring about the greatest interest in those in your area. A Division site, on the other hand, might be more limited by the technological field than geography, and as a result will appeal to companies seeking customers in that field.

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How do we charge?

What and how to charge is largely determined by the client's needs, particularly if you do not have a lot of clients lined up. Setting certain guidelines beforehand will help you in dealing with potential clients.

• Banner ad rates change depending on how targeted the audience is and how popular the site is. As a result, there isn't one right answer for how much each one should cost except for what clients are willing to pay. When selling the banner ad, you can emphasize the targeted nature of your site by pointing out its appeal to certain professions, job classifications, and/or localities. You can find out more information about banner ad rates in general through sites in the Banner Resources list in the right-hand sidebar.
• There are a few different models for how to set prices for banner ads. One is by impression, or page view, in which you charge a certain amount each time someone sees the ad. Another is clickthrough rate, in which a certain amount is charged for each time a person actually clicks through to the advertiser's Web site. Finally, you can charge a certain amount per customer conversion, or each time somebody buys something after seeing your ad.
• Probably the best way to start — particularly if the client doesn't know very much about online advertising — is with impressions, or the number of times someone views the page with the ad. Page views are pretty immediately understandable, much like paying for the number of drivers who go past your billboard. The standard unit for negotiation is CPM, or cost per thousand impressions. Ways to charge include charging for a certain number of impressions — and leaving the ad up until it gets them — or figuring out how many times the page is likely to be viewed in a month and charging based on that. Top of page

How did they get that ad?

Sometimes, when surfing through small sites that can't possibly have that many users, you'll come across an ad for a large, highly successful company that you think couldn't possibly be buying ad space from that site. Well, you'd be partially right. More than likely the site involved has signed up with an ad network, a company that accumulates ad space across thousands of sites in order to sell large, targeted advertising packages to major clients. Networks can be one of the easiest ways of getting into banner advertising, since they will give you HTML and Javascript code that will automatically pull banners from their server and place them on your site. However, you usually will first have to qualify as a network member by showing evidence of a certain number of page views or a desirable group of users. The best-known ad network is Doubleclick, but there are many others out there. Top of page

What about interactive ads?

You may have seen banner ads that allow you to search for information or play a game in the banner without ever leaving the page. These ads are normally created though the use of Java programs or Flash. They can be a little harder to put on a page than a graphic file, so you want to make sure you (or your client) have the technical expertise to do it. Top of page

Things that make you go "Click!"

Some of your clients may have never used a banner ad before and could want your advice about how to make an effective one. Here are a few tips from ISA's Market Matters on how to build an effective ad.

• With the proliferation of banner ads on the Internet, one way to capture the customer's attention is to put a "button" or "click here" statement in the ad. Ads like these — utilizing natural Websurfing behavior — get more clickthroughs.
• Almost any kind of ad generates more clickthroughs when it is paired with some sort of offer. Some ways of doing this are to offer more information, give away promotional items for free, and run contests.
• Using an animated GIF for a banner ad can catch people's eyes, but just using moving pictures with no other purpose ends up being an annoying flicker to a potential customer. Some of the better animated banners are used to trick the eye, intrigue the audience, offer more information, or tell a story.
• After they click: If you can get page view statistics for your site, sending the user who just clicked through your ad to a special page that will immediately redirect them to the right page is a good way to track how much traffic your ad is generating. Some Web statistics programs even allow you to track the person's path through your site.

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