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europeforvisitors - 7:20 pm on Mar 31, 2002 (gmt 0)
1) Users have become accustomed to "tuning out" banner ads; 2) Some readers use "ad killers" like AdSubtract pro; 3) Text ads have more believability than banners do, at least when used in an editorial or advertorial context. (A text link offers an "implicit testimonial" that a banner ad lacks.) As for whether to give the other Webmaster the banner that he wants, you don't need to justify your decision. If your policy is not to run banner ads, then you can simply tell him that.
My "content site" earns quite a bit of money from affiliate sales, and I've found that text links work at least as well as banner ads in generating clickthroughs. In fact, they often work better, probably because: