ORIGINAL: Bax
I've actually seen full-scale banner towing done with the airplane on the ground and taking off with the banner attached. They had about 150' of towline, and laid it all out in front of the airplane. That gave it about 300' to accelerate before the banner was pulled by the plane. They were using a modified Stearman biplane with over 250 Hp. (don't know the exact engine power). The Stearman was usually airborne in about 250' with a mild breeze. The banner would then nicely lift off. They didn't land with the banner attached, though, they'd make a low fly-by and release the tow cable, which fell to the ground, nicely laid-out.
Well there are a lot of those Stearmans running around with the 450HP Pratt & Whitney conversions in them, R-985's IIRC, makes a h*ll of an aerobatic performer out of them and I'd love to get a ride in one some day...
The tow planes I've seen were a C-150 with a 150HP conversion, a Super Cub with a 180HP in it, and a C-185 with the big Continental IO-520 in it. All of those had power to spare for the airframe, but none would get in the air in 250 ft. Probably why the Stearman guy can do it that way.