To get the best out of AdSense for your site, you first need to know how AdSense works.
What happens is that the site owner inserts a portion of java script supplied by Google onto a page of his site. Each time a visitor lands on that page, the java script will read what the page is about, and pull relevant advertisements from the AdSense database.
The ads should therefore be targeted to the content on the web page where the ad resides. Because it is relevant to the search term the visitor used to get to the page, it may encourage the visitor to click on an ad to find out more. If a visitor clicks on an ad, the webmaster earns a percentage of cost-per-click amount that the advertiser is paying Google.
The beauty of this system is that it's the search engine which gets the ads from its database and handles the payment to the site owner automatically. The webmasters don't have to find advertisers willing to put an ad on their site, collect payment, and check all the clicks. All this is done automatically. Of course the returns per ad on much lower than if there was a dedicated ad on the page paying a set amount each month, but there is no work involved on the part of the site owner.
It would be very rare that a relevant ad for a site could not be found in the Google AdSense database. In these rare instances AdSense will supply public service ads. If a site is getting these ads on a regular basis it is past time that a review is made of the page's header and content, or else take AdSense off that page altogether.
One reason why AdSense had become so successful is that it understands the needs of both advertisers and webmasters. It allows different types of ads, such as skyscraper ads, block text ads, one line ads, allowing site owners to choose the type of text ad format which best fits their page layout.
If the ads are integrated into the page layout as seamlessly as possible they may give the possibility of more than one click from visitors who may not be aware that what they are clicking on is in fact an ad. The ads should encourage visitors to do further investigation on their subject because the wording of the ad intrigues them Thus the site owner makes a bit of money and the advertiser gets a visitor to his site.
AdSense publishers can now track not only how much they are making from their sites in total, but also which of their ad placements are the most profitable through the use of channels chosen by the site owner himself. They can get customizable reports from AdSense by url, domain, ad type or category They can get the total number of hits to a page, the total clicks and click through rates, enabling them to adjust ads and pages in order to maximize revenue.
Advertisers can see the benefits associated having their ads served on targeted websites because it increases the possibility that the visitor to the site will also have an interest in what they have to offer.
AdSense is all about the ads being relevant to the page content, and the more targeted your content and headers are to what the page is actually about, the more targeted will be the AdSense, and the more the benefits to both the site owner and the advertiser.
Alternatively, you may like to do a search