Excerpt from: Don't Waste Time on Google AdSense
You can display a number of Google AdSense ad formats on your website, including text ads, image ads, link units, video ads, and gadget ads. You can maximize your website advertising revenue by choosing to run each of the Google AdSense ad formats, although you need to make sure the ad formats you choose integrate well with your website and enhance the user experience.
Google AdSense gives you a number of options for displaying ads on your website. The ad formats you choose should integrate appropriately with your website and enhance your user experience.
Text ads are the most common type of Google ad. Text ads are composed entirely of text. They feature a headline, two description lines, and a website address. Text ads are arranged in vertical or horizontal ad units that contain multiple text ads.
Image ads are a type of banner ad and feature graphical images along with text. You can choose to enable image ads along with text ads, and they will be displayed interchangeably on your website.
Link units are a list of topics that are relevant to the content of your page. When a user clicks a topic, Google will show a page of related ads. With link units, you don’t earn money from clicks on the topics. Rather, you earn when a user clicks ads on the resulting page. Link units allow you to place ads where you have limited space.
Video ads are standard commercials that play in a video player on your website when clicked. You don’t have to have your own video player on your website nor will you pay for streaming expenses when you enable Google video ads. Google provides the video player in the code it gives you and Google takes care of the streaming.
Gadget ads are like mini-websites that run as ads on your website. These ads are designed to be more interactive and engaging than other ad formats. Gadget ads can do all the same things any website can do, but the gadget ads are embedded in your website and users don’t have to leave your website to enjoy the features of the gadget ads.
Avoid common pitfalls and make money with Google AdSense by reading Don’t Waste Time on Google AdSense.