In the contemporary digital landscape, banner ads are often perceived as relics of the early internet, reminiscent of a bygone era characterized by flashing text and rudimentary websites.

The widespread perception of these online billboards is that they are obsolete and ineffective, with few lamenting their decline. However, a new form of banner ad, empowered by Google, has emerged and is rapidly gaining traction, eager to capture attention (or clicks, whichever comes first).

This article delves into the history of banner ads, explores their modern and improved iteration, and provides guidance on leveraging them effectively.

The (Un)Beloved Banner Ad: Why Most Fall Short

Much like regrettable historical events and fashion trends, banner ads are often viewed as an unfortunate chapter in the evolution of the internet. They are generally perceived as intrusive, aesthetically unappealing, and widely disliked. Their once-ubiquitous presence dwindled significantly in 2008, met with a collective sigh of relief from internet users.

As Brian Morrissey of Digiday notes aptly put it, “The banner ad, now 18 years old, embodies the shortcomings of online advertising. Lacking creativity, intrusive on webpages, and largely ignored by readers.” While blunt, this assessment rings true. A few years ago, Solve Media did a report revealed the dismal click-through rates of web banner ads. It turns out that accomplishing extraordinary feats is statistically more likely than clicking on a banner ad. For instance, you are:

• 31.25 times more likely to win the Mega Millions lottery
• 87.8 times more likely to be accepted into Harvard University
• 12.5 times more likely to complete Navy SEAL training
• 475.28 times more likely to survive a plane crash
• 279.64 times more likely to summit Mount Everest

Perhaps it’s time to invest in some hiking gear! Despite these abysmally low click-through rates, some argue that even traditional website banner ads can serve a purpose for advertisers.

Looking Beyond Click-Through Rates: The Value of Banner Ads

Currently, standard banner ads achieve a click-through rate of approximately 0.3%. While this figure is undeniably low, it’s crucial to consider metrics beyond click-through rates to gain a comprehensive understanding of their impact.

Many wonder, do banner ads actually work? The answer is nuanced and extends beyond click-through rates alone. Impressions generated by internet banner ads can be almost as valuable as clicks. While they may not be the gold standard, they still hold value. Marketing Profs reminds us to heed PEAR – Potential for Visibility and Recall. Some banner ads aren’t even designed to be clicked; their primary purpose is branding.

While some users claim to completely disregard online ads, the reality is that humans are not as adept at intentional blindness as they believe. A vibrant banner ad is bound to attract attention. While it may not elicit an immediate response, it can leave a lasting impression that may become relevant days, months, or even years later.

For instance, you might not be in the market for a new laptop today. However, when an ad for a sleek MacBook Air appears on your favorite blog, it might pique your interest, planting a seed of desire. Months later, when your current laptop suffers an unfortunate accident, that MacBook Air ad might resurface in your mind as you consider a replacement.

While metrics like Post-Exposure Action Rate (PEAR) are important, measuring the impact of banner ads on brand awareness remains a challenge. Given the historically intrusive and unappealing nature of banner ads, it’s no surprise that they have garnered a negative reputation.

Google’s Revitalization of the Banner Ad

While old-school banner ads have fallen out of favor, Google’s Display Network (GDN) is breathing new life into this advertising format.

What sets the Google Display Network apart? One key factor is remarketing.

Remarketing, in practice, works like this: You’re browsing a website selling beer steins, hoping to expand your collection. Suddenly, your friend calls to discuss movie plans for the latest action flick. You navigate to a cinema website, get distracted, and forget about the steins. As you continue browsing, a display banner ad catches your eye – it’s for the same German beer steins you were eyeing earlier! The ad reminds you of your interest, you click on it, complete your purchase, and everyone wins.

This is achieved through browser cookies. When you visit a website using remarketing, a cookie is placed on your browser. If you leave the page without taking action, this cookie triggers relevant display banner ads across the Google Display Network, enticing you to return to the original product page.

Remarketing ads significantly outperform traditional banner ads, boasting higher click-through and conversion rates – up to 36 times higher. This improvement stems from a shift from interruption marketing to inbound marketing.

Traditional banner ads rely on interruption marketing, disrupting the user experience to deliver a message. This approach often manifests as forceful, intrusive, and attention-grabbing.

Remarketing, on the other hand, aligns with inbound marketing principles by seamlessly integrating with the user’s natural browsing behavior. Remarketing banner ads are inherently inbound, offering a tailored and personalized ad experience based on individual user intent.

While visually similar to their predecessors, remarketing banner ads represent a significant evolution, delivering greater effectiveness for both users and advertisers.

Google Display: Simplifying Banner Ad Creation

Google is further enhancing online banner ads by making it easier for advertisers to create effective ones. To encourage wider adoption of the Google Display Network, Google offers many tools and resources to streamline banner ad creation.

AdWords provides tools and resources for banner ad design, including a variety of ad sizes, templates, and best practices, empowering advertisers to create compelling banner ads.

While remarketing isn’t mandatory for all banner ad campaigns, it’s highly recommended to experiment with. Advertisers are often pleasantly surprised by the impressive conversion rates achieved through remarketing. For inspiration, explore these banner ad examples.

The Resurgence of Banner Ads

This new generation of banner ads holds immense potential for advertisers, especially given the current popularity of visual content. Platforms like Pinterest exemplify the insatiable user appetite for image-based content. Many popular Pinterest images, featuring a single striking image and a concise tagline, could easily be mistaken for well-designed banner ads.

The banner ad is back and better than ever, thanks to the transformative capabilities of Google Display Network’s remarketing features, ushering in a new era for this advertising format. (Read More: Online Ad Type Examples)