You put a web site's banner on your web page. That site puts your banner on their page. This means you have done a banner exchange. Search Engines, in part, rank sites based on the number of links to a certain site.
A banner exchange or network is a group of web sites that display ads on each others web sites Tracking software reports how many visitors came from each website to ensure that all participants are treated equally.
A banner exchange program is a program designed to allow marketers to exchange banners (a form of bartering) to enable marketers to promote their sites without the outlay of cash. A program typically allows a marketer to display one advertisement, across the network, for every two advertisements it hosts on its site. Unlike a straight exchange with one entity, exchange programs allow for the possibility for the banner to be displayed on many web sites (those sites that participate in that particular network). CAPCO Marketing offers a free banner exchange to GourmetShoppes.com merchants with a straight 1:1 ratio.
An alternative to banner ads, a banner exchange provides the potential to draw extra traffic to a web site through banner displays and is a good way to fill unsold or onprofitable inventory. The most common banner exchanges, such as LinkExchange, offer one banner display on some external web site in the network for every two banners displayed on one's own web site. Most banner exchanges use 468x60 pixel standard banners, although there are a few pop-up banner exchanges and skyscraper exchanges.