Banner Advertising:

Paying $15 for a 1000 impressions on a high traffic website. Sounds like good exposure for a low price? It is! After all you will have a 1000 unique people view your banner. But how many actually end up clicking on it, and how many more actually end up buying stuff from you? According to most industry sources the average click through rate of a banner campaign is 0.38%. So you get 3.8 people to click on your banner for $15. And the rate of conversion is typically 1 to 5%. So how much do you actually spend before a person buys from you? You do the math. It appears quite a lot to me.

What about those popup ads? Or the ones that keep popping up and refuse to close? Wouldn