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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.). free web site, Banner Advertising.

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The annoyance problem points out something interesting about advertising, however. When pop-up ads first appeared, they bothered lots of people and you did not see them on very many sites. After a while, people got used to them and stopped complaining, and now pop-up ads can be found on tons of sites. Television provides another useful example. If television programs were ad-free today, and suddenly a TV station were to start running eight minutes of advertising every half hour right in the middle of programs, people would go NUTS! There would, quite possibly, be riots in the streets. But since we are all familiar with TV ads, they don't bother us much. In fact, during the Super Bowl, the ads are a big part of the show! advertising clock.
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