AdSense have always stressed that the most effective position for ads are within content, so when I found out you can insert AdSense between posts directly via the LAYOUT, I immediately thought I could insert the ads in the middle of a post, which is impossible to do up to now. Unfortunately, that insert ads in between 2 posts, not in the midddle of a post, something I had been trying to do for a long time. You can actually do this by messing with the template. Refer to Incorporate AdSense within the content (click BACK button to get back to this page).
The way to do direct from Blogger LAYOUT it is very simple. Sign into Blogger, which will get you into the Dashboard with a list of all the blogs you have in that Blogger account. In the section for "Blog posts", usually in the middle of the LAYOUT (may be in a slightly different position if you use non-standard Blogger templates):
Click EDIT (highlighted with a red circle). You will get a "Configure Blog Posts" "pop-up". 
Tick "Show ads between posts", select your format by clicking on the down arrow or just leave it as the default half-banner and chose you ad colors or just leave it as the default "Blend Template" which is advisable (all 3 highlighted with red circles).
Then just scroll down and click "Save Changes". Now you don't have to worry about violating AdSense policy as this is done via cooperation between Google AdSense and Google Blogger. However, if you want the AdSense withing the post, you will still have to depend on the hack described in Incorporate AdSense ads within posts and wrap text around them (click BACK button to get back to this page.
The only thing to note is that if you had applied for your AdSense account direct from Blogger, there is nothing extra to do. If you have got your AdSense account via some other means, and this is the first time you are adding AdSense ads direct from Blogger, you may be asked to grant Blogger access to your AdSense account, which I believe is perfectly safe to do so.
One final thing. Just to make sure that the ads have the same publisher's ID, at the blog with the ads between posts, I click VIEW > PAGE SOURCE to see the page source of that webpage, and this is what I found:
The "pub-12345....." was the same as my AdSense publisher ID (figure altered for security) thus assuring the ads displayed are actually "mine".
AdSense between posts
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AdSense Tip: How to Increase AdSense CTR
Topics Covered in this Guide:
- What Google AdSense Engineers say about CTR- What Webmasters have concluded about CTR
- Traffic and its effects on CTR
- Experiments with CTR
What Google AdSense Engineers Say
- An email conversation with a Google Engineer:- Google Optimization Guide:
For example, on pages where users are typically focused on reading an article, ads placed directly below the end of the article tends to perform better. It's almost as if the users finish reading and asking themselves, “What can I do next?” Precisely targeted ads are just like answering their questions.
What Webmasters have concluded
If you develop a poor quality content website, it will likely give you high CTR and clicks, but you will be getting low priced ads. Besides, nobody will like to add your URL to their favorites. However, if you have quality content that keeps the visitors glued, you may get low CTR, but you will be getting high priced ads and regular visitors.
The Traffic
Experiments
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Adsense Secrets: Getting More Clicks on Your Ads
Do you own a High CTR website?
However, this is only one condition; there are many undiscovered conditions that affect the CTR of keywords. At times, a particular season also has an effect on the performance of keywords. For example family of 'Turkey recipe' keyword is more active around November and December only and a quite sluggish rest of the year. It becomes really necessary to study the behavior of keywords before starting a massive website of Adsense around a topic.
Your Ad Position and Color: Old, but very effective
https://www.google.com/support/adsense/bin/static.py?page=tips.html#17954
/bin/static.py?page=tips.html#17954
Get Targeted Traffic - The Most Essential Part
You can gather highly targeted traffic for your website by web promotion strategy and effective optimization of your web page structure. Effective web promotion strategy requires an appropriate Anchor text and more back links from relevant websites. And, to develop an effective web page structure, you have to optimize your Title Text, internal linking of your website, and most importantly your web content, in the best possible manner.
Choose the Right Anchor Text for Back Link Campaigns
Wisely Choose the Title Text of Your Web Page
Help Google Detect the Theme of Your Web Page
Meta Tags
Title Text
Headings
Google Mediabot gives importance to the Heading text enclosed inBoost Relevancy Artificially - Use Google's Section Targeting
For more information on the same topic, visit:
https://www.google.com/support/adsense/bin/answer.py?answer=23168&topic=371
For more information on the same topic, visit:
https://www.google.com/support/adsense
/bin/answer.py?answer=23168&topic=371
Use Channels for Analyzing Your Ads' Performance
Block Junk Websites and Competitor Websites from Showing Ads
This trick can sometimes double or triple your Adsense income, augment user experience, and makes look your Google ads more genuine. For more information about this tool, visit:
https://www.google.com/support/adsense/bin/answer.py?answer=21593&ctx=sibling
/bin/answer.py?answer=21593&ctx=sibling
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How to Avoid Having Your AdSense Accout Banned for Click Fraud
If you trawl through the AdSense message boards you can’t help but come across tales of woe from AdSense publishers that have had their account banned by Google.
Below is a list of ways people have been banned from AdSense and information on how to avoid it happening to you.
Don’t click on your own ads
The obvious one but still people do it. Google has the IP address of the computer/s that you’ve used to create and check your AdSense account. If it sees that this IP address clicks one of your ads you’re in trouble.
Don’t do it. It’s theft. Not from Google but from the AdWords advertisers.
If you want to go to a site advertised by one of your ads don’t click on it look at the URL of the advertising site at the bottom of the ad and type it into your browser.
If you click on one accidentally (which does happen) you’re probably be ok but it’s worth dropping a quick email to Google with an explanation and apology
Don’t log in to AdSense from a shared computer.
As I said above Google keeps a record of every machine IP address used to look at your account. If you check your stats on a machine then someone else clicks on your ads from the same machine Google sees this as click fraud. Worth bearing in mind when thinking of checking your stats from somewhere like an Internet Café.
Don’t log in to your AdSense account from work.
Apart from getting in trouble with the company that employs you there’s also a further real risk. Most companies use a proxy server to access the Internet. A proxy server with ONE IP ADDRESS. Therefore you checking your ads from work means this proxy IP address being recorded by Google as one that you use. Problem is if there are 1000 people in your company it is the same IP address for them too. Google can’t differentiate between you and the other 999 employees in your company. If one of these 999 clicks on one of your ads it’s ban time.
Don’t get into a ‘I’ll click your ads if you click mine’ agreement with another Webmaster.
As above Google will have your IP address and that of every AdSense publisher. If they see these IP addresses consistently clicking on each other ads it’s goodbye for both of you.
Don’t tell friends and family.
Telling friends and family about your money making websites can lead to problems. Even if you tell them not to click on your ads there’s always the chance that Auntie Maud will think it’s a good idea to make some extra money for her favourite nephew. 100 clicks later from the same visitor and your account is screaming ‘Click Fraud’.
Receiving clicks from illegal traffic
Check the AdSense TOS for sources of traffic that aren’t allowed by Google. These include methods like Traffic exchange, PTC advertising, Auto surf etc.
Do monitor your visitor and AdSense figures
Check your account at least once a day. If you see a massive spike coupled with a massive increase in Page CTR investigate using your visitor stats website. If you see it’s all come from the same IP address you could have been the victim of a malicious attack – inform Google via email and offer them access to your logs.
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Make Money as a Publisher
1. Adversal Publisher Network.Will buy 100% of your pop-under inventory every month so that you'll never have to worry about your ad space going unsold again. Pays up to $1.20 per 1,000 page views. That's equal to $6.00 per 1,000 unique visitors! Payment via paypal or egold, $20 minimum.
2.Triad Media, A full-service online marketing and advertising company. Publish Ads and get paid.Mode of payment by check. Minimum payout (not determined )
3.Fair Ads Network. Monetize your blog by publishing text ads, link ads, images, CPM, CPA, even rich media (video) and interstitials. Interstitials ads have as high as $.25 per click. Payment through paypal, minimum of $5.
4. SEOTrends.Offers ad-serving solutions for advertisers and publishers. Publishers focus on inventory management solutions to leverage their content into better ad revenue, & advertisers require enhanced reporting & campaign management tools to constantly excel in their media campaigns. We cater these needs quite efficiently, effectively and economically.Helps premium web publishers generate continuous revenue by selling their adspace to the right kind of advertisers.Payment by paypal, check, bank transfer.
5.Clicksor.Offers webmasters the opportunity to earn more income by simply underlining a selection of clickable text (inline text links) or displaying targeted contextual ads (various sizes of banners) on their Web sites or blogs.Payment through paypal or check, $50 minimum
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