The middle-ground, 'correct' answer is, banners are not *as effective* as they once were.
Do banners still work? Sure. On the right Web site. In the right place on the site.
As far as I'm aware, WHT is in no shortage of repeat advertisers looking to snap up the banner advert spots, so they must be working here at least.
And I'm constantly seeing bloggers creating banner ad spots on their blog and selling out of spots very fast. That tells me they do still work. Maybe not as well as they once did, and maybe there are better advertising methods available, but they still do work to some level, whatever level that may be.
I wonder if there is anybody who has been running banner ad campaigns for the past four or five years. It would be really interesting to compare the results from four years ago to the results of 2007/2008.
People who are affiliate of Commission Junction have said that text link is more effective than banner. Banners may give beauty to your site but according to some statistics, rarely do people click on banners.
peoples now aday find that red shaking banner to be very annoying and it doesn't work well because it look like banner. If you want to monetize your websites then used pay per click ads which is much much better.
I'm with Jaime, under certain circumstances banner ads still do quite well.. Especially when you are working on your branding, an interesting banner with a solid logo / brand can have very positive long term benefits..
Also, while text links tend to get clicked more often, Ive seen banner clicks tend to convert better.. I have no real testing other than observation to suggest why that is, but to me it looks like more people click on text links "by mistake" thinking that they are menu items on a website and then immediately hit the back button to go back to what they were doing while people that click on ad banners tend to genuinely be interested in what you are selling..
I would be using banners to get my company name known throughout the internet, I wouldn't expect much more than that. The rest would be just an added bonus for me. When I want to target traffic to our website that converts, PPC will be the option for me. I think banners are still effective in their own ways, just not like they used to be. As with anything, it's not going to be what it used to be, well, maybe not anything but a majority of things. I think PPC is the best bet to gain traffic that converts. Of course, this is just a humble opinion from me for what it's worth.
I'm not sure if banners are still effective. Aren't paople just annoyed by banner ads now?
The answer is always "it depends."
Banner advertising that is well targeted to the audience of a website tends to perform very well. You'll also notice on many websites what are called "roadblocks." Roadblocks are basically when a company purchases all of the banner space on a particular page. These are highly effective branding wise IMHO. You tend to see these on more "mass media" sites though.
If you are looking to start running banner advertising on your own website, be sure to have a plan of how you're going to put relevant advertising in that space. Putting a banner ad and throwing garbage advertising in your space usually doesn't pay well, can ugly up your site, and yes, be annoying!