Contrarian Opinion:
Web Banner Advertising is a Bust

In a the August 21st issue of InfoWorld, banner advertising, even at $100 for 10,000 impressions, does not seem to be a bargain worth investing in. Advertising on the Web via traditional banner ads is not working, and most likely will be replaced by some kind of micropayment system, says Jakob Nielsen, a former Sun Microsystems engineer and author.

"Most advertisers have no clue about the true fundamental nature of the Internet or how to make use of interactive media. Ninety percent of the time you click on a banner ad and you arrive at a horrible Web site. People are learning they can’t trust these things... Users are completely ignoring banner ads. Click rates are falling through the floor."

Nielsen predicts that users eventually will have to pay for Web content using a micropayment system such as a smart card, rather than relying on advertising dollars to pay the freight.