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At some point, advertisers came to the conclusion that banner ads were not as effective as full-page magazine ads or 30-second TV commercials. At the same time, there was an incredible glut of advertising space -- thousands of sites had a million or more page impressions available per month, and companies like DoubleClick began collecting these sites into massive pools of banner-ad inventory. The economic principle of "supply and demand" works the same way on the Web as it does everywhere else, so the rates paid for banner advertising began to plummet. 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.
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