Banner ads were first introduced some 20 years ago and have been an inseparable part of the web ever since. However, there has been a continued decline in banner clickthrough rates, which where around 78% in and have fallen to % now. This is largely due to the fact that banners were a novelty in the past and if anything, consumers love novelty and innovation.
For example, if research shows that fair-trade coffee is most popular among adults ages 35–54, trying to convert millennials with a banner ad campaign likely won't be effective. Instead, focus your banner ads on your core audience — people who would already be interested in your product — to see the largest click-through and conversion rates.
The click-through tells you how well your banner performs. Most banners fetch a click-through of between % to %. If your banner gets more than %, it is doing a pretty good job. By monitoring your banners' performance, you can kill under-performing banners before they waste away your advertising dollars.
Facebook employees have stated that a click-through rate below % is considered poor-performing. What Is a Good CTR for A Banner Ad? Average click-through rates for banner ads (like the one below) have been on the decline, but common wisdom is that a CTR above 2% is commendable. The average CTR is much lower (around %).