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Kinky said it all!
Link trades with relevant sites and with good keywords in anchor text will help boost rankings.
That's why link lists etc. are trading between same niche categories and use niche specific recips. It can give much more targeted traffic from SEs.
Banner exchange is another thing tho, because then traffic is mostly the key.
Those too, will give you backlink and help build link popularity but mostly those are for traffic.
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