Business owners who want to take advantage of Internet marketing strategies such as banner ads but are on a limited budget may find banner exchanges to be quite useful. The ideal use of banner ads would include placing your banner ad on a website that receives a great deal of traffic and attracts an audience who will likely be interested in your products or services. Additionally, this website should not directly compete for your business. This scenario may be difficult to find and even when a business owner is able to find this type of situation, purchasing advertisement space may be expensive especially if it is a highly competitive niche. These business owners may find banner exchanges to be an affordable alternative.

The most appealing factor of banner ad exchanges is the cost-effectiveness of these situations. Most banner ad exchange groups are free to participants. Unlike placing a banner ad independently, there is no financial cost for the appearance of the banner ad on another website but the business owner does have an obligation to fulfill. Most banner ad exchanges will find another website to post your advertisement without charging a fee but they will require you to post at least one banner ad, and sometimes more, on your website in exchange for having your banner ad displayed on another website. Many banner ad exchanges will work to attempt to match your banner ad to a relevant website but this is not always possible and your banner ad may wind up on a website that is not relevant to your products or services. This will likely mean that the banner ads will generate very little interest in your products and services. Similarly, the advertisements you are asked to post may not complement your website well. You will likely have the opportunity to reject advertisements in particular categories you find to be offensive but will have little control beyond that to moderate the banner ads on your website.

Another very affordable option for placing your banner ads on the Internet may include starting an affiliate marketing campaign. This is an Internet marketing campaign in which website owners, or affiliates, post your banner ad on their website and attempt to promote your products and services for you. The banner ads typically include graphics and text which entice Internet users to click through the ad to your website and also include embedded code which provides you with feedback detailing which affiliates generated the website traffic. This information is necessary because affiliates are typically not paid unless they achieve the desired result such as enticing Internet users to click through the banner ad or make a purchase. The affiliates are typically compensated either on a cost per click basis or a cost per sale basis. Cost per click means the affiliate receives a predetermined amount of money each time a user clicks on the ad. Cost per sale means the affiliate receives either a flat fee or a percentage of the sale for each sale generated by the affiliate. Affiliates may also be paid on a cost per lead basis which means they are compensated when a user performs a specific action such as registering with a website or filling out a survey. Most people favor affiliate programs because it is a cost-effective way to place your banner ads online and because they only have to pay affiliates who are successful.