Strategic placement of the ad units is vital for your profits. Quite logically, when you place ads where they are visible, this seriously increases the number of clicks you will get. The best places are above the fold (i. e. in the top half of the page) and in the text itself. Basically, the closer the ads to the text are, the better. You can have a look at these AdSense placement tips from Google to see which places are considered good, best, and worst for ad placement.
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