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In the beginning, "advertising" on the Internet meant "banner ads" -- the 468x60-pixel ads you see at the top of almost all Web pages today (including this one). In 1998 or so, banner advertising was a lucrative business. Popular sites like Yahoo could charge $30, $50, even $100 per thousand impressions to run banner ads on their pages. These advertising rates provided fuel for much of the venture capital boom on the Web. The idea was that sites could start up and increase their page impressions to make easy money from banner ads. If a site could generate 100 million page impressions per month, it could make $3 million per month with banner ad rates at $30 per thousand impressions. free web site, Banner Advertising.

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Floating ads are appearing more and more frequently for several reasons: They definitely get the viewer's attention. They are animated. Many now have sound. Like TV ads, they "interrupt the program" and force you to watch them. They can take up the entire screen. Therefore: From a branding standpoint, they are much more powerful than something like a banner ad or a sidebar ad. They cannot be ignored. They have a high click-through rate, averaging about 3 percent (meaning that 30 people will click through for every 1,000 impressions of a floating ad). The high click-through rate, as well as the greater branding power, means that advertisers will pay a lot more for a floating ad -- anywhere from $3 to $30 per 1,000 impressions depending on the advertiser and the ad. Because they can pay a lot of money, Web sites are willing to run floating ads. free advertising.
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