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Banner Ads - Effective Advertising or a Waste of Money?

Mārtiņš Grūbe Mārtiņš Grūbe
• 19.09.24. • 5 min read
Editorial Note (2026 Context)

Evaluating banner ad effectiveness shifted in 2024 from simple click counting to total funnel impact. In 2026, visual advertising (GDN and Meta) serves as a primary tool for brand awareness and demand generation, significantly increasing the ROI of search ads. Learn more in our ad management services.

Working with client accounts and managing campaigns, I frequently encounter questions from clients regarding banner ads. Therefore, I will attempt to take a neutral look at the issues surrounding banner advertising.

Key Takeaways

  • Not a direct sales engine: Evaluating banner ads solely by post-click purchases is a mistake; their primary role is brand awareness and demand generation.
  • Boosts other channels: Users who have previously seen a brand's visual banners are significantly more likely to click on Google search ads and organic results.
  • High-ROI retargeting: Retargeting banners remind users of unfinished purchases and help recover up to 30% of cart abandoners.
  • Visual hygiene: A clear value proposition, strong contrast, and concise text without visual clutter are prerequisites for good ad performance.

Historical results of banner ads

Before we discuss results, I must note that everything that follows is based on my individual experience, having spent 15 years in the marketing field and managing campaigns across various countries.

Banner advertising itself is a natural evolution of traditional marketing - outdoor advertising, posters, and banners transferred to the digital environment. Why did this happen? It is very simple - advertising always follows the consumer and attempts to place itself where people spend their time. I don't think it will come as a surprise to anyone that we spend more and more of our time online, so it is logical that advertisements are placed there. From there, opinions on their effectiveness diverge.

The positive aspect is that, unlike traditional outdoor advertising, the effectiveness of banner ads can be precisely measured - or at least, one can try. Banner ads on the internet can be effective, but not for every project or goal. An outsider might expect banner ads to generate a lot of sales and for everything to just happen. In reality, banner ads are most often not used as direct sales ads, but are instead assigned a supporting role. In my career, I have seen maybe five instances where a banner ad was the exact ad that generated the most direct sales.

The role of banner ads

To simplify, all Google Ads campaign activities can be divided into two parts: sales-oriented campaigns and support campaigns. Even though banner ads are often very flashy and visually effective, they are still used more in support campaigns. Why? It is simple - it is all about the campaign type and the consumer behavior cycle. Banner ads are placed using the Display network, where the consumer is reached in a phase when they are not actively searching for the advertised product or service, but, according to the client or specialist, might be interested in the offered product or service.

Of course, there are situations where, upon seeing a banner, clicking on it, and arriving at a website or a targeted landing page, a person makes a purchase, but this will certainly be less frequent than in Search campaigns, where ads are shown directly to people specifically searching for the product or service using keywords. Currently, the main role of banner ads in Google Ads campaigns is to foster general interest and grow brand awareness, which is perfectly complemented by Facebook and Meta Ads. Given that banner ads can be relatively inexpensive and reach a wide audience, they remain a highly effective way to inform the public about special offers and sales. It is very often observed that banner campaigns improve the metrics of sales campaigns, which demonstrates their role in the marketing ecosystem.

The future of banners

The visual banner is fluid and constantly evolving. If we perceive a banner only as an image, then its days are certainly numbered. Technology is evolving, and so is visual advertising. In just 15 years, the banner has changed from a static image to a moving image and beyond. My prediction is that image-type banners will gradually be pushed out by video ad formats, as we see that the video format is developing very rapidly and offers more possibilities than a regular image. That is why I already advise my clients to think about and start creating their own video content. Simply put, the banner as an ad form may remain, but its format could change quite drastically.

Conclusions

I cannot bring myself to call the use of banners a waste of money. When campaigns are managed thoughtfully and effectively, banner ads can play a significant role in the long-term development of a project. Use banner ads as informational material, monitor their results, and they can help improve the profitability of your campaigns. If your budget is limited, use banner ads only as periodic campaigns. If possible, test different banner formats; sometimes a static banner can be more effective than a super-interesting animated one. It is certain that banner ads have their role and their potential; the key is knowing how to use them.

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Mārtiņš Grūbe

Mārtiņš Grūbe

Google Ads & PPC Strategist | 15+ Years Experience

Co-founder of MarketMeNow and Lead Google Ads & PPC Strategist with 15+ years of experience managing high-budget search, shopping, and Performance Max campaigns.

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