Banner exchange is the service that provides free banner exchange programs. This program attracts people who are interested in placing free banners on their sites. There are various programs for banner exchanges like impressions/ clicks for ratio 1:1 or 2:1. In 2:1 for example, every time 2 banners are shown one banner is shown for free. Its the same in ratio 1:1 click, you will get the same number of clicks for your banners, as you have clicked on other peoples banners.
To make this program more effective, you have to design good banners. Your banner should clearly describe the landing page service/ product. Use proper standard size of banners to place on sites. Your statement line, offers, service or any discount should also be clear on the banner. Use proper colors, text, font size, font and your company logo too. Also banners are effective for branding purposes and getting your website  out into the worldwide audience.
Check your website stats to make sure you get good conversions in banner exchange programs. Most of the time we get clicks but do not get conversions so it is essential to choose good banner exchange programs to sign up to. These programs also offers services that you can pay for, so be sure to read their terms of service agreements before paying any money.