In its simplest form, a Banner Ad is akin to an ad in a print medium, like newspaper, magazine or journal. However, one major difference between the two is that a banner ad can be interactive and since it is hyperlinked to the advertiser's website, when a user clicks on the page, he is led to another web page detailing his products and services advertised on the banner.

Banner ads can be designed and animated and through clever design, they can be made to be interactive. A selling message can be presented in a compelling way with the objective of initiating an action from a potential customer and involving him from the first stage itself. Graphic elements when employed in a very creative way, can bring prospects directly to the website of the advertiser.

Typical banner design sizes(in pixels) are:

Standard Horizontal Banners: Design sizes - 468 x 60 Full Banner, 234 x 60 Full Banner, 230 x 33 Full Banner

Panels: Design sizes - 125 x 125 Square, 120 x 90 , 120 x 60 , 88 x 31

Vertical Banner: Design sizes: 120 x 240, 160 x 600, 120 x 600

One could design banner/panel based online advertising in two ways: Paid mode and Exchange mode.

In Paid Banner Advertising strategy, one would typically buy spaces for a certain period or exposures on websites that attract high targetted traffic.

As opposed to the paid banner advertising, banner exchanges involve simply exchanging banner spaces with other websites. If you allow a website to place a banner ad on one of your webpages, you get space for your banner ad on that website. Banner exchanges are more effective when done with sites having similar profiles.

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