For some blog advertising works, for others it doesn't. One of the benefits of advertising on blogs is that the audience is generally very targeted. When I want to get some additional exposure for a service or product, I submit ads through Blogads.com. I also accept ads through Blogads (see ad for diet articles in left sidebar). One of the things I like about Blogads is that as the publisher, you have total control over what you charge for your ads as well as what ads you want to accept.
As an advertiser, it's a relatively inexpensive way to reach more people and is a good way to test your ads in front of your target audience.
What's your experience with blog advertising? Please share by clicking the comment link below.