Many advertising repetition studies have demonstrated wear-out effects, and found several moderating variables. In the context of Internet banner ads, this study examines the effects of repetition on attention, memory, and attitude, and identifies the moderating role of animation. By analyzing data on users' actual visual attention, we found attention wear-out occurs with static but not with animated banner ads, which consequently influences the downstream effects: Compared to a static banner ad, an animated ad barely attracts consumers' attention initially, resulting in worse memory performance and attitude in the beginning. However, with repeated brief exposures, animated banner ads eventually catch up with the static ads on memory and generate even better performance in terms of attitude. To summarize, animations signal the users the existence of ads and lead to ad avoidance behavior, but after repetitive exposures they induce positive user attitude through the mere exposure effect. Both the theoretical and practical implications are explored for using animation on the banner ads.