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Banners are still quite important and galleries serve their purpose, but the "market" is much different now. Perhaps it's like selling DVDs. Sure, people buy them, but you need BluRay and digital download as well.
Flash banners seem quite popular, as well as other media rich banners. A lot of mainstream sites I visit now have video banners... you click the little tab to expand the ad and get a demo video of sorts, pretty cool. Possibly an idea for porn? Not sure if I've seen that around.
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