As the number of smart phone users increases, so, too, does the number of advertising opportunities and the efficacy of mobile banner advertising. There are currently 91.4 million smart phones in use in the United States alone and 90 percent of smart phone users use their phones on a daily basis. This is a huge audience for any advertising campaign.

Mobile banner advertising is a very popular way of getting revenue for companies who offer free mobile apps, especially game apps. Ads typically appear at the top, bottom or side of the game screen or after the user takes a turn in the game. These ads can be animated or static and can contain simple text information or photos with hyperlinks embedded. When a user clicks on the ad, the phone’s default browser is launched and the URL specified in the ad is loaded.

Studies by MediaMind, a digital advertising campaign management company, have shown that mobile advertising is eight times more effective than banner advertising on Web sites. The average click through rate on mobile banner ads is 0.61 percent, while the rate for online banners is only 0.07 percent. For companies considering one advertising method or the other should really focus on mobile banner ads based on this statistical information.

While some critics attribute the higher click through rate to accidental clicks by users, MediaMind dismisses this notion and states that mobile users are simply embracing the new technology and advertising method. Another reason banner advertising may be experiencing higher click through rates is because the number of banners on the screen at any given time is much lower than with online banner advertising. Typically only one advertisement is displayed at a time, allowing users to focus on that one advertiser’s message rather than being overwhelmed by advertising messages.

Another advantage of mobile banner advertising over other traditional advertisement methods, such as television or radio commercials, is price. Mobile ads are significantly less expensive than these other advertising methods, which means more companies can afford to use this type of advertising.

If you haven’t explored mobile banner advertising as a way to expand your company’s business, you really should. You’ll most likely experience higher click through rates than with online banner ads and your advertising budget will stretch further, so you may be able to place mobile banners on several different apps for even greater exposure.