This dissertation examined the effect of search type, ad saliency, and ad repetition on the perception of online banner advertisements. In the first study, 48 student participants conducted simulated search tasks using mixed factorial design where search type (known-item vs. exploratory) was manipulated within-subject and the banner saliency level (low (black and white) vs. medium (color) vs. high (color animation)) was manipulated between subjects. The results showed a significant effect for search type, such that during an exploratory search task the participants had a higher average number of eye fixations on the banner ads compared with known-item search. In addition, there was a significant difference between high and low ad saliency levels, such that participants exposed to low salient ads had a higher average number of eye fixations on the banner ads as compared with high salient ads. There was no significant effect of ad repetition on ad perception. A second study replicated the original experimental design but used four novice Internet users. The results from the second study provide preliminary support to the asymptotic habituation model, which predicts an inverse decline of an orienting response to banner ads as a function of repetition. This dissertation concludes with applicable design recommendation for banner ad deployment to ensure visibility while maintaining a positive user experience.