5 Tricks to Earning With Google AdSense
Displaying Google advertisements is by far the most popular way bloggers monetize their blogs today. It's simple to create the ad blocks and place them on your pages, and the program is available to everyone (those who have not been banned), regardless of website traffic and PageRank.
However, because Google pays on a per-click basis, it can be rather difficult for some webmasters to profit from this ad program. I wouldn't suggest displaying these ads alone- most 'successful' bloggers rely on multiple income streams to earn a living from their blogs.
Here are a few tips to help you get the most out of your Google ads:
When posting, stay on topic.
Because your keywords are what determines which ads will display on your blog, keep focused on the topic at hand. You want the ads to be relevant to what you are writing about.
Update often.
If you don't update regularly, you are not giving your readers much of a reason to visit your blog, nor are you steadily creating new pages for search engines to index. Without traffic, all these other tips are useless, and you won't receive any clicks.
Place ads in your blog's "hotspots".
Ad placement is extremely important if you're looking to generate more clicks. 
The image to the right is a general outline of which spots on a webpage get the most visitor attention, and where you should place your ads. The darker areas suggest a higher click-through rate (CTR).
Of course, this is only a recommendation based on statistics, and bloggers should also consider their own page designs, and what works for them, in addition to this. After all, you just may find that your blog's visitors are more focused on other parts of the page.
Trial and error is the true key to defining your most profitable ad areas.
Blend your ads with the page.
Nothing screams "ADVERTISEMENT!" more than a rectangle that stands out from the page, or even worse, clashes with your blog's theme. While this works with some (very few) blogs, the general rule of thumb is to design the ads so they match the rest of the text and links on your page, and are not defined with a border.
Track your stats.
Create ad channels in your AdSense CP so you can observe which ads are receiving the most clicks. This is a great way to keep track of your earnings when experimenting with ad positions and designs, as well as any other websites you may have.
Remember, some of these are guidelines (ad placement and appearance), and not rules to abide by. Results vary between websites, and the only way to determine what works best is through experimentation.
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Recent update in the Google Adsense ToS clearly states that your Adsense Ads should be distinct from the rest of the content on your blog so that the readers know that what they are clicking on, is an advertisement.
Trick #4 definitely works for the publisher but Google doesn't really like it.
Customize ads such that they suit and match well with your blog's theme but blending them in such a way that they can not be easily made out from the rest of the blog may land you in trouble (from Google's side) which in my personal opinion is so unwelcome...
Posted by: Inspirit | Abhinav | May 12, 2008 at 12:44 PM
Hi Abhi, and thanks for dropping in.
You're right- the ToS does state that it must be obvious that they are indeed ads. But because Google now labels their own ads "Ads by Google", there isn't a real need to worry about whether or not the ads blend in too well, as long as you are not asking others to click on them, and if you choose to label them, they should be labeled as "advertisements" or "sponsors".
There are several websites floating around that have been built around the ads (text, colors, and line spacing match to a 'T', and the ads are placed among other links so it's hard to tell the difference), but are not being penalized simply because Google labels their own ads. Controversial, yes, but still abiding by the ToS.
I wouldn't suggest going that far, just to be on the safe side, but simply matching the colors will do a lot more good than harm.
Posted by: Raivyn | May 12, 2008 at 03:18 PM
i like your blog, this clearly sums it up. intro to Adsense is really an opener to other aspiring bloggers. in the forums, the most debated queries are from what are the best ad placements, color, theme and lots of techniques to get a higher CTR.
head on to www.TheAdsenseKing.com for Free Adsense Training + Unreleased Video
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Posted by: jimmychen | May 16, 2008 at 01:33 PM
really a great post regarding making money with google ads .
Posted by: jeff paul | December 19, 2008 at 01:17 AM