Be creative. Capture the attention of the viewer with bold colors and creative copy. Bland, derivative banner ads tend to fade into the background of the website where they are found - and do not resonate well with potential customers.
Don't worry about bandwidth. Five years ago, companies did not push the envelope with the technology behind their banner ads because they were afraid many web users would not be able to view them properly on their computers. Now that over half the world is using high-speed connections instead of dial-up (and that percentage is growing), you should feel more comfortable using Flash and other visual elements to create unforgettable banners.
Use targeting technology. Advertisers now have the ability to have their banner ads appear on only certain pages and certain types of users. By tracking the IP address of the user, you can have ads appear before those in a location you are targeting. Targeting opens up a whole new world of possibilities for banner advertising.
Look into site takeovers. Why have just one banner on a page when you can have three or four. Simultaneously taking up all the available banners on a page creates a powerful effect that is much more likely to generate a strong click-through rate to your site.
Utilize the "long tail." If you find the big, highly-trafficked sites to expense for your ad budget, why not focus on several less expensive niche sites that pertain to your business? The cost will be less and you might find you can more effectively reach those who are REALLY interested in what you have to offer.
Don't give up on the banner ad! For progressive thinkers like you, there is still a multitude of ways to make this popular media shine.