Are 125 x 125 pixel Ads Right for An Advertiser?

Problogger asked the question from the point of view of a blogger. I will answer it from the point of view of an advertiser based on my own experience. I started to advertise 1 Cool File on blogs with 125 x 125 ads. I also have a product(Blog Directory category) with an affiliate program and my 3 main goals are:

• Increase the number of visitors
• Sell Blog Packages(start at only $2,50/year)
• Build a list of potential blog reviewers

So far, it's disappointing because the sells are not there. Of course, it's much harder to sell something. Some did see the ad but emailed me to asked if I wanted to advertise on their blog. The weirdest part is that my blog directory category is targeted at bloggers and they can make money too. I'm sure that they would make more from that than me advertising for 1 month on their blog. On one upcoming blog, it will cost around $0,70-0,75 per visitor. I still have a few days left but it's far too much to pay in my opinion. This is what I used: But if your only goal is to get traffic to your blog then I could see it as a good alternative that cost less than a full banner and more visible than a text link. Also, find blogs that will rotate the ads if the price is the same for all. I'm sure that you will have more visitors than me!