E-Commerce Glossary
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Banner Exchange

A banner exchange is essentially an advertising network that allows you to swap advertising space with other webmasters. In return for agreeing to display banner advertisements on your website, you get free banner impression on other websites.

Banner exchanges usually work on a certain ratio, such as two to one. This would mean that you get one free banner impression for every two banners that are displayed on your website. There may also be some other requirements, such as a minimum number of click-throughs originating from the banners shown on your website. This would encourage webmasters to place banners in a good position on their web pages.

There are several large banner exchanges on the Internet. By nature, banner exchanges are mostly used by small businesses and websites that do not have a large amount of traffic. Web masters with a large advertising budget often buy advertising space, instead of using a banner exchange.

One problem with a banner exchange is that you do not have control over the advertising that appears on your website, nor do you have control over the sites the banner exchange links to. Advertising banners displayed on major banner exchanges are often of a relatively low quality and websites may have annoying features such as pop-up windows. Thus, it is important to select a good quality banner exchange that checks the banner advertisements for quality, before allowing them on the banner exchange network.

 

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