So why do you need one? Well, favicons build brand identity by getting your logo all over the internet. The more you logo and company name seems familiar to people, the better.
Let's face it, the little icons are cool. They make your website look less generic, more professionally designed. That 16x16 px square is prime website property, and you don't want the huge no - no of your website suppliers icon appear there, or worse no icon at all. You definately shouldn't be advertising your website supplier on a website that you're paying for to advertise your business. Lots of websites will just display the standard one of the web browser. What a missed oppourtunity!
There's a good reason for favicons being prime property online. Bookmarking! If people bookmark your website, it's probably going to go into a long list in their bookmarks folder. Having your logo next to your name will make that link in the bookmarks folder more recognisable and therefore one that people are more likely to click on.
It's the same with tabbed browsing. When people have multiple tabs open, and jump from site to site, having a favicon next to your website title will again provide a quick visual reminder which tab belongs to your and your website.
If you'd like a favicon for your business website, check out our favicon design page