One of the quickest ways to spend your internet marketing budget is through banner advertising. Banner ads are so called as they are usually displayed at the top of a page. Typically they are of a fixed size and when clicked, link through to a corresponding page on the advertisers site.

The power of banner advertisements is that they can be targeted to a particular audience. For example, it is possible to display different banner advertisements based on the keywords that the user has just searched on, on the Yahoo site. This means that if a user is searching for computer hardware, the banner ad displayed could be for a hardware store.

There are two main reasons for paying for banner advertising. Firstly in the hope that the user will follow the link and then be exposed to detailed information about the product or service. And secondly, that all visitors to the page will note the advertisement (whether consciously or not) and thus the banner ad is used to build or reinforce the brand.

There are variants on the standard, static, advertisement. Animated ads are more common than static ones, and allow you to convey a larger message, with more impact. Popups are also common. They will appear in a separate browser window when you first arrive at the site or change page. Due to their obtrusiveness they are unpopular with users and should be used sparingly if at all.

When placing banner advertisements it is important that you consider the location carefully. Either choose sites with a large audience such as portals and news services (newspapers etc.) or go for smaller special interest sites. The audience may be smaller, but you can be surer that the advertisement will be reaching people more ready to hear your message. You can either directly approach sites to place advertisements or talk to an agency or advertising network. Doubleclick (www.doubleclick.net) are one of the largest and can organise a co-ordinated campaign across several sites.

Banner ads are typically measured in page impressions. That is, the number of page views or times that the banner appears on the page (this doesn't guarantee, however, that the banner is always seen by distinct users). Pricing can vary wildly, largely depending on the level of traffic to the site. Advertising at AOL (www.aol.uk.com - figures from March 1999) with a monthly page view rate of 125 million costs £60 per thousand page impressions. For smaller sites, the cost can be much lower, down to as little as £5 per thousand.

If you do want to use banner advertising, then think carefully about placement to ensure you get the best possible audience. And, make sure you advertise enough. Research indicates that at least three impressions of an advertisement are required to give adequate recall. Also make sure you offer appropriate incentives; you have to make your audience want to click-through.