How much would do you think a reasonable website ad would be?

[Lin]

What would you pay for an add that reaches about 7,500 people that is on the side in a banner ad with other ads that is 125 x125 pixels.

The ad reaches just a small region.

[PhiPUD]

You didn't mention if the traffic was daily, weekly, monthly but the way I value an ad spot is based on the amount I can make by placing an affiliate offer related to the site content. So if I can place an affiliate offer on the site and make $100 I would charge a minimum of $120 (20% premium) to sell the spot because it takes more effort to manage the ad, renewal, etc.

[Jake]

The going cost per thousand banner space rates for that size is near $1-$2 CPM, meaning $7.50 to $15, certainly I see a lot of bloggers offering small rect ads for $10/mo but probably average less traffic than yours.

Check the quotes on banner brokers like buyads.com, buysellads.com and blogads.com

[AFG]

in my opinion a 125X125 worth nothing until you just want your ad to be seen by people and ignored.

the space is too low to send any marketing across , Bloggers prefer this because it gives them more money.

Better spend little more and go for a 250X250 or 300 Size ad.