As part of the promotion strategy for your Web store you may well decide to use banner advertising. However, although banner ads are by far the most common way of advertising on the Web, they are still a relatively new method. As a result, there is still much debate around how the success of banner ads should be measured, and how they should be paid for. The root of this debate is the different needs and aspirations of the advertisers and the banner ad hosts.
Advertisers place banner adverts on Web sites in order to achieve specific goals.
How they measure the effectiveness of their ad campaign, and how they wish to pay for it, is dependent on these goals. If their goal is to increase on-line sales, they will measure the number and value of orders received and will want to pay a fixed fee or commission to the ad host for each sale. The banner ad host tends to take a completely different view, which is that the host can only influence the number of impressions an ad receives and should therefore be paid on this basis. Hosts feel that the advertiser controls all other factors influencing the effectiveness of a banner campaign. The number of click-throughs will depend on the quality of the advertisers banner and the number of sales will depend on the quality of the goods or service the advertiser is offering and how good a job they make of selling them at their Web site.