People react to ads differently on the web than other types of media. A logo in a banner usually screams "advertisement" to the audience, and web pages are already oversaturated with banner ads. Visitors usually don't want to see ads when they come to a web site. Visitors are expecting to find information or entertainment.
One of the most ineffective banners is one that contains a logo and a company slogan. How does that banner ad benefit your audience? What reason does the viewer have to click on to your site? None! You've just said in your banner "look how good I am" rather than thinking "look what good I can do for you."
There are some instances when a logo in a banner ad can be helpful: one is for "branding" purposes, that is, getting your company name out in public so people are more likely to remember your company, product, or service. Some companies purposely create branding banners when their logo or name is already well known with the public, such as Coke or Microsoft. Other companies using banner ads just to tell the public that their business' services will be available soon.
Companies who use banner advertising for branding are companies which (a) are already well known to the public, and (b) have a large advertising budget to feature their name in many places. And that means for the majority of businesses, using a company name and/or a slogan in a banner ad is an ineffective way of obtaining high CTRs (click-through-ratios).
So if your company is not a big, well-known company, then how do you get people to click on to your site through your banner ad? Design your banner with the appearance that it will provide information or solve a problem if you click on it. If you have to include your logo on the banner, then make sure the logo is not the main focus of the banner. Make your logo small and place most of the emphasis on the call-to-action.
Logos in banner ads can generate better results if they are part of a keyword search. Say for instance, you have purchased keywords from a portal site, such as Yahoo, where anyone who enters keywords in a search query will come to a web page on the portal's site that has your banner displayed. Because you have already narrowed down your target audience, and people who have come to the particular web page are more likely to be looking for what you provide. A logo that says what your company let the visitor may is more likely to click on your banner and go to your site.
In conclusion, we rarely recommend that companies use logos in banner ads because those banners tend to have the lowest CTRs. The only times we recommend using logos in banner ads is for branding purposes, but expect low CTRs.
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