This is the most important aspect which is usually ignored by the users.  The ads should be placed where the users can view them. If you are going to place your ads in the footer where no one view them, its of no use. This video demonstrates how this could be possible with a real life example.

Color Blending with Proper shades

If you are going to place a opposite colored ad unit in your clean site, people will be distracted more and there are more chances for them to leave your website than you are served. You must make sure that the ads you place should match with the layout of your page. This Video will help you in detail.

Ad size

This plays a major role to increase your Google earnings as if you use some small ad unit which has a less detail, there are more chances that people neglect the ad area. If you use a bigger unit, it fetches more attention and hence a boost in your income.

Adsense for Search

If you have a search feature in your website, you can monetize it with Google custom search engine which is monetized using Adsense. You will make money when someone search your website with adsense search engine. More about it in this video.

Industry Expert Tips for Adsense Optimization

Here is what Darren, the Problogger wants to share with you in relation with adsense.

Google AdSense is an advertising program that was launched in the middle of 2003 by Google, the popular search engine. Google acts as an intermediary between a vast number of advertisers and an equally impressive number of website owners.

Google AdSense is an ad serving program run by Google. Website owners can enroll in this program to enable text, image and, more recently, video advertisements on their sites. These ads are administered by Google and generate revenue on either a per-click or per-thousand-impressions basis. Google is also currently beta-testing a cost-per-action based service.

* To put ads on a web page, the webmaster inserts JavaScript code into the page.
* Each time a page with an AdSense tag is visited, the JavaScript creates an iframe and sets its “src” attribute to the page’s URL.
* For contextual advertisements, Google’s servers use a cache of the page to determine a set of high-value keywords. If keywords have been cached already, ads are served for those keywords based on the AdWords bidding system. More details are described in the AdSense patent.
* For site-targeted ads, the advertiser chooses the page(s) to display ads on and pays based on CPM (cost-per-thousand-impressions , or the price advertisers choose to pay for every thousand ads displayed).
* For referrals, Google adds money to the advertiser’s account when visitors either download the referred software or subscribe to the referred service.
* Search ads are added to the list of results after a user performs a search.
* Since the JavaScript is sent to the web browser when the page is requested, it is possible for other site owners to copy the JavaScript into their own web pages. To protect against this type of fraud, AdSense customers can specify the pages on which ads should be shown. AdSense then ignores clicks from pages other than those specified.