In my opinion banners no longer work well and are pretty useless! Banners usually achieve high click-through rates for the first couple of weeks, but after that they sink pretty quick. There are few ways to increase your click-through rates if you still use banners though, here's a few tricks.......

Use “Action” Words - Use words which ask web users to react for example: “Click Here” Banners with “Click Here” teasers, and similar action phrases will improve click-through rates.

Short and to the Point - using short and to the Point sentences on banners will make a big difference.

What’s the Benefit? - Use statements that offer benefits to the user and offer solutions to solve customers’ problems

Animated Banners vs. Static Banners - Animated banners usually receive more click- through rates then static banners. Users of the Internet are more likely to notice banners that are animated. Further more use a combination of both text and images.

Change your Banners Frequently - After the user has seen your banner for the 3rd time, they will probably ignore the banners in the future. You should track your click-through rate closely and if you notice it falling it is time to change the banner!
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