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Originally Posted by AdvertiseSpace
That is not true. For your example that may be correct, but not for all products and all forms of paid advertising. You just need to make sure that the numbers work, and it can work for iphone apps too.
I buy ads on some sites for $5 a month and promote stuff that generates $50 per sale. I only need one sale in 10 months to make a profit.
For apps you want to advertise where you can get good bang for you buck. Like here on iPhone Dev SDK forums you can advertise your app up at the top. That is pretty targeted at a cheap price.
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Saying that it works for $50 apps if you can buy $5/month ads is almost exactly the same thing as saying that it doesn't work.