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Set up your own banner rotation system for free.
Orbit Cycle

400x40 ads (usually with additional 40x40 network logo
Exchange-it!
LinkMedia
TradeBanners:

400x50 ads (usually with additional 50x50 network logo
GSAnet Banner Exchange

468x60 ads
LinkExchange
Net-On's Banner Exchange
and Net-On.Net U.S. site

Country Specific Sites
EuroBanner
Austria, Iceland, Sweden, Belgium, Ireland, Switzerland, Denmark, Italy, Turkey, Finland, Luxembourg, France, Netherlands, USA, Germany, Norway, Canada, Great Brittain, Portugal, Japan, Greece, Spain
LinkExchange
Arabic, Bahasa, Indonesia, Bengali, Chinese, Croatian, Czech, Danish, Dutch, English, Farsi, Finnish, French, German, Greek, Hebrew, Hindi, Hungarian, Icelandic, Italian, Japanese, Korean, Malay, Norwegian, Polish, Portuguese, Russian, Slovak, Spanish, Swedish, Thai, Turkish, Vietnamese
LogicLink
France, Britain/UK, Italy, Spain, Netherlands, Norway, Finland, Belgium, Sweden, and Denmark
HyperBanner
UK, France, Switzerland, Germany, Holland, Norway, Denmark, Italy, Israel, India, Australia, New Zealand, Japan, Hong Kong, India, South Africa, Argentina, Brazil, Canada, and U.S.A.

I find it hard to believe that banner exchanges generate significant extra traffic. This is based on the 1% rule - only a maximum of 1% of people will click on an untargetted banner. Each 100 times your banner is displayed you might get 1 extra visitor. So how do you get your banner displayed?, by displaying other peoples banners on your web pages that get few visitors anyway! It is a circular argument with you as the loser.

Although banners can be placed anywhere on the page they tend to be placed immediately under the title. This increases the chance of the banner being noticed and hence the chance of the reader clicking on the banner to travel to the banner owners web site. It is also possible to use a banner to advertise another part of your own site.

Every time you display somebody elses banner on your site the source site logs this fact via the personalised alphanumeric code you included in your version of the code that requests the banner. Hence the more banners you display on you site the more times your banner will be shown elsewhere.

There are a number of companies offering this banner exchange service although their "exchange rate" is almost never 1 for 1. The minimum rate seems to be 1:2, that is one display of your banner for every two displayed at your site, but better rates can be found depending on the location of the banners you display and/or the popularity of your site. Study the statistics supplied by the banner exchange provider for your own banner. In particular study the "click through" percentage which represents those people who saw and acted upon your advert. If this key figure is too low then your banner might need to be redesigned or it might be that your service provider is not targetting your banner well, or at all! It is always a good idea to sign up with several companies and to then compare their success rates.

In my experience many of these firms have very few clients and the vast majority of the banners that they display are promoting their own business. I would seriously question the value of any banner exchange that needs to do this. If more than 15% - 20% of the banners originate from the company running the service I would look elsewhere.