Display Ads (banner ads) allow you to display your brand and your value proposition on relevant websites in a graphical way.
Let's say that you are Best Buy and you are looking for new customers. Logically you would advertise on sites that are frequented by your prospective customers, and hopefully the types of sites they would visit when they are doing research.
For example, let's say that you want to sell Plasma TV's. It might be a good idea to have your banners displayed on sites (or pages) that are reviewing Plasma TV's. That way you have an opportunity to present your sales pitch to potential customers. If you display your banners on a site that sells baby toys, the odds of somebody clicking on your ad are much lower.
Banner ads are typically paid for based on the number of times your banner is displayed (CPM) as opposed to paid search ads which are known as pay per click (PPC).
Finally, you have to be very careful when purchasing CPM advertising. It's very easy to spend a lot more than you planned while not getting the conversion results you need.
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