Web banner

Web banners function the same way as traditional advertisements are intended to function: notifying consumers of the product or service and presenting reasons why the consumer should choose the product in question, a fact first documented on HotWired in 1996 by researchers Rex Briggs and Nigel Hollis. Web banners differ in that the results for advertisement campaigns may be monitored real-time and may be targeted to the viewer's interests.

Many web surfers regard web advertisements as annoying because they distract from a web page's actual content or waste bandwidth. In some cases, web banners cover screen content that the user wishes to see. Newer web browsers often include software "adblocker" options to disable pop-ups or block images from selected websites. Another way of avoiding banners is to use a proxy server that blocks them, such as Privoxy. Web browsers may also have extensions available that block banners, for example Adblock Plus for Mozilla Firefox, or AdThwart for Google Chrome and ie7pro for Internet Explorer.

History

The banner ad played a significant role in enabling the rapid development of paid advertising on the Internet.

The pioneer of online advertising was Prodigy, a company owned by IBM and Sears at the time. Prodigy used online advertising first to promote Sears products in the 1980s, and then other advertisers, including AOL, one of Prodigy's direct competitors. Prodigy was unable to capitalize on any of its first mover advantage in online advertising. The first clickable web ad (which later came to be known by the term "banner ad") was sold by Global Network Navigator (GNN) in 1993 to Heller, Ehrman, White, & McAuliffe, a now defunct law firm with a Silicon Valley office. GNN was the first commercially supported web publication and one of the first commercial websites.

For many years, HotWired was regarded as the inventor of the digital banner ad, and the first web site to sell banner ads in large quantities to a wide range of major corporate advertisers. Andrew Anker was HotWired's first CEO. Rick Boyce, a former media buyer with San Francisco advertising agency Hal Riney & Partners, spearheaded the sales effort for the company. HotWired coined the term "banner ad" and was the first company to provide click through rate reports to its customers. The first web banner sold by HotWired was paid for by AT&T Corp. and was put online on October 27, 1994. Another source also credits HotWired and October 1994, but has Coors' "Zima" campaign as the first web banner. In May 1994, Ken McCarthy mentored Boyce in his transition from traditional to online advertising and first introduced the concept of a clickable/trackable ad. He stated that he believed that only a direct response model—in which the return on investment of individual ads was measured—would prove sustainable over the long run for online advertising. In spite of this prediction, banner ads were valued and sold based on the number of impressions they generated.

However, Time Warner's Pathfinder (website), which launched on October 24, 1994, the same week as HotWired, but three days earlier included banner ads. Walter Isaacson, then President of Time Inc. New Media, and the Columbia Journalism Review, both credit Bruce Judson, then General Manager of Time Inc. New Media, with inventing the concept of the banner ad. In an interview for Harvard's Shorenstein Center for Media, Politics and Public Policy, on the history of the Internet, Isaacson discussed Judson's contribution, saying, "It really transformed everything. Immediately, Madison Avenue decided, 'Oh my God, we’ve got to understand this. We have to hire a lot of young people.' They would send us money. It was almost like you could look out of the Time-Life Building to Madison Avenue, and watch people walking with bags of money, to dump it on our desk, or Bruce Judson’s desk, to buy banner ads."

The first central ad server was released in July 1995 by Focalink Communications, which enabled the management, targeting, and tracking of online ads. A local ad server quickly followed from NetGravity in January 1996. The technology innovation of the ad server, together with the sale of online ads on an impression basis, fueled a dramatic rise in the proliferation of web advertising and provided the economic foundation for the web industry from the period of 1994 to 2000. The new online advertising model that emerged in the early years of the 21st century, introduced by GoTo.com (later Overture, then Yahoo! and mass marketed by Google's AdWords program), relies heavily on tracking ad response rather than impressions.