Hi dynastar,
Thanks for reaching out.
There are no limitations on the image sizes by Advanced Ads, and you can use images in any dimension and upload them in any file size.
Whereas in your WordPress installation, probably a maximum file size for uploads is set, and for page speed reasons, it is not recommended to use too large files.
Is there a page that shows examples of each ad type and/or placement?
You can find all available placements on this page that contains an image with the placement icons that will help you to get an impression of the possibilities.
In this manual, you will find additional details for all available ad types.
Please let me know if you have any other questions.
Best regards,
Joachim