When the Web first started, banners were all the rage. Today, they’re pretty much passé. They’re no longer a novelty and unless they’re super-clever, users pretty much ignore them. Conversion rates have dropped through the floor and many advertisers have found other ways to push their products.
And yet, every website still contains a whopping great banner ad splashed along the top or running up the side. In part, that’s because they’ve become more sophisticated with better targeting and improved graphics. But in practice, banner ads tend to be used for one of two reasons: as a method of gaining/ giving users through an affiliate program; or as a way of generating revenue—or traffic—through paid advertising.
Both these methods work to some extent, but the key is always to make sure the economics make sense. We’ll look closely at the math in this chapter, but before we go
on to talk about the math of banner ads—and how to tell whether your banner campaign is worthwhile—let’s just take a look at the terms involved. You’re going to see these words whenever you join an affiliate program or take part in any other kind of online marketing scheme. You should definitely be familiar with them.
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