I'm not keen on the auto-change of banners however, a slow loading page could mean a banner does not get displayed because it has timed out before the page is loaded. Also, with some banners it takes a bit of time to digest what the banner is about.
I don't think categories are necessary unless you are trying to target certain types of banners to certain types of sites. This will be provided as free service, no need to make it more complicated than necessary.
I think you should also set a limit on the file size of the banners, this way people with dial-up connections will also see the banners.




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