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In the beginning, "advertising" on the Internet meant "banner ads" -- the 468x60-pixel ads you see at the top of almost all Web pages today (including this one). In 1998 or so, banner advertising was a lucrative business. Popular sites like Yahoo could charge $30, $50, even $100 per thousand impressions to run banner ads on their pages. These advertising rates provided fuel for much of the venture capital boom on the Web. The idea was that sites could start up and increase their page impressions to make easy money from banner ads. If a site could generate 100 million page impressions per month, it could make $3 million per month with banner ad rates at $30 per thousand impressions. free web site, Banner Advertising.

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What branding advertisers came to feel about banner ads is that banner ads are not the most effective vehicle for branding. Relative to a magazine ad or a TV ad, banner ads are small and easily ignored. What direct sales advertisers came to feel about banner ads is that the response rate for banner ads is low. For most banner ads, the industry average seems to hover between two and five clicks per 1,000 impressions of the ad. That is, if a banner ad appears on 1,000 Web pages, between two and five people will click on the ad to learn more. Those five clicks per thousand impressions don't have much value to most advertisers. The reason is because those five clicks will not all generate sales. Out of 100 clicks, perhaps one person will actually do the desired thing (buy something, download something, etc.). advertising career.
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