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Well-done banner campaigns will continue to be the staple of the Internet advertising for the future.

Graphic banners are not so good at generating traffic through “click-throughs” but have a powerful branding effect.
On the other hand, Text links and google style html banners are great for generating traffic through “click-throughs”, but with out the branding effect.
Graphic banners are like Internet's billboards... Only better.
Imagine you are driving down the highway and you see a billboard for vacationing in Czech Republic. Imagine you could drive into the billboard and get an even richer experience of that vacation... all the details on how to get there and a ticket at the end.

Matching site content to banner ad subject can certainly increase their power. Selecting a banner to display based on the observed personal preferences and interests of a visitor are a hugely powerful sales tool. The potential for rich media enhanced, targeted banners is huge.

Graphic banners will be on the Internet forever. It is currently a BILLION dollar industry. Banners or any other internet marketing campaign don't work for those selling junk. A graphical banner can bring plenty of traffic, but if the offer on the web site is not strong enough to motivate the visitor to buy, join or contact the web site owner, then that is not the banners fault. Banners can bring huge success, but if the web site doesn't load properly for the visitor because the webmaster couldn't resist building a web site loaded with graphics, complicated java and javaScript and redirects to "flash" pages, then that is not the banner's fault.

Also see the website design

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