Why text and link give better results than banner ?

It gives better results because the keyword(s) are related to the niche (or domain name) and google can read this. Let's assume my blog is http://weightloss.com, if I link it http://weightloss.com, google recognizes the keyword matches the niche and gives it some juice rather than a banner which isn't recogonized as anything but a backlink by google.
Posted via Mobile Device
 
When talking about links on your own site/blog to get your traffic to a merchant or an offer there's another advantage from the visitors point of view.

People are ad-blind these days. (Flashing) banners in the sidebars and headers...we are all used to it.

What do people visit your site for? For the content.
So where are the eyes of your visitor? Where the content is.

So when you place textlinks inside the content you have them right in the view of your visitor.

Placing banners inside the content could be an option...only thing is that people identify a banner as an advertisement and most of them will distrust them and will not click. Not to mention that it disqualifies your content as an "unbiased observation"....:D
 
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