Google Adsense Tips and Tricks from Google:
Optimization Tips
Where should I place Google ads on my pages?
The best placement for Google ads varies from page to page, depending on content. Here are a few questions to ask yourself when considering where to position your ads:
What is the user trying to accomplish by visiting my site?
What do they do when viewing a particular page?
Where is their attention likely to be focused?
How can I integrate ads into this area without getting in the users' way?
How can I keep the page looking clean, uncluttered and inviting?
Certain locations tend to be more successful than others. This “heat map” illustrates these ideal placements on a sample page layout. The colors fade from dark orange (strongest performance) to light yellow (weakest performance). All other things being equal, ad placements above the fold tend to perform better than those below the fold. Ads placed near rich content and navigational aids usually do well because users are focused on those areas of a page.
While this heat map is useful as a positioning guideline, we strongly recommend putting your users first when deciding on ad placement. Think about their behavior on different pages, and what will be most useful and visible to them. You'll find that the most optimal ad position isn't always what you expect on certain pages.
For example, on pages where users are typically focused on reading an article, ads placed directly below the end of the editorial content tend to perform very well. It's almost as if users finish reading and ask themselves, “What can I do next?” Precisely targeted ads can answer that question for them.
Which ad format should I use?
As a rule of thumb, wider ad formats tend to outperform their taller counterparts. The reader-friendly format has a lot to do with this. Readers absorb information in thought units (that is, several words at a time). The wider format lets them comfortably read more text at a glance without having to skip a line and return to the left margin every few words as they would be forced to do with a narrower ad. The wider ad format also lessens the likelihood of readers leaving the ad unit altogether.
Since these formats allow users to read more text without having to skip a line every few words, users' eyes have less chance to leave the ad unit altogether. If positioned well, these ad formats can increase your earnings. The formats we've found to be the most effective are the 336x280 large rectangle , the 300x250 inline rectangle , and the 160x600 wide skyscraper . Keep in mind that while these ad formats perform well, you should use the format that best complements your pages.
Should I put AdSense on all of my pages?
If only a small number of pages on your site are displaying Google ads, try placing the AdSense code on more pages, especially those rich in text-based content. AdSense can be effective on many different types of pages, whether they contain product descriptions, forums, or news articles. Increasing ad exposure helps add variety across your site and offers users more selection, which in turn can improve your site's performance as an advertising vehicle.
What color palettes are the most successful?
You may find that colors that stand out without overshadowing your content are better for your site than colors that blend in so well, the ads are practically invisible. However, you may find that colors that blend in completely perform better. However you choose your color palettes, make sure that it complements the color scheme of the page. Also, rotating color palettes is a simple way to add variety and freshness to your ads. All you need to do is hold down the Control key and select up to four color palettes when generating your ad code in the Ad layout code page of your account.
Examples of:
ads that stand out
ads that blend in
How can multiple ad units be used effectively?
Multiple ad units can help optimize your performance by leveraging our large inventory of ads. You can place up to three ad units per page. Remember that the best way to measure the effect of multiple ad units is to examine the impact on your overall earnings. Here are some instances where multiple ad units may prove successful:
Pages with lots of text, requiring users to scroll down the page.
Forum or message board pages, particularly within threads.
Pages where only smaller ad formats (such as the 125 x125 button) will fit.
Keeping your filter list small
Is your account filter list working a little too well? Consider reducing the number of filtered ads. While filtering is a quick and easy way to prevent unwanted ads from being displayed, keep in mind that filtering decreases the number of ads that can appear, thereby decreasing your potential earnings as well. In order to increase the variety of ads served to your pages and to make the most of every opportunity for additional revenue, try removing URLs from your filter list. Also, instead of filtering out the top-level domain of an ad (which will prevent any ad from that domain from appearing), filter just the exact destination URL.
Monetizing search from your pages
Placing the search box on your site can generate a new revenue stream, while also providing a useful service for users. The search results pages can be customized to fit with your site's theme, and you'll be paid for every valid click on the ads that appear.
For more information on AdSense for search, please visit the AdSense for search section of AdSense Support.
Enhance your pages with link units
In addition to the standard Google AdSense ad formats, AdSense now offers a new link unit format that can help bring incremental revenue to your site. We recommend experimenting with link units by incorporating the link unit into new and old locations throughout your site. If you'd previously found that the standard AdSense ad format did not work well for a particular page, we recommend trying the new link unit on that page. Remember that one link unit per page can be placed in addition to the existing three AdSense ad units on that page.
These ad topics are targeted to the content on your page and allow users the ability to view additional ads about the topic they've selected. To learn more about link units, please review the Link Units section of AdSense Support.
How can I get my site included in Google’s search results?
Getting recognized and receiving high quality traffic is key to your success with AdSense. If you'd like to optimize your web site's traffic, we suggest you take a close look at our webmaster guidelines for ideas on how to develop your content and structure your pages.
Keep track of changes with channels
Wondering whether a certain ad placement will be effective, or want to find a cure for 'banner blindness'? The best way to find out is to keep testing. We encourage you to experiment with AdSense on your pages. You'll never know what you'll discover. You can use channels to observe the effects of your changes. And whether you want to track a specific type of ad placement or an entire site, you can do it with both our custom and URL channel features.
https://www.google.com/support/adse...?page=tips.html
-Allan
From the horse's mouth: Optimization tips! 
Something Witty This Way Comes... 
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