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Just so you know, if a google adsense admin sees that they will require that site to change to make it stand out more. thats too good of blending (though effective).
The ethical reason for blending is so the users dont become ad blind because they constantly reconise the ads (think of banner ads and how you ignore these automaticly on alot of sites). This is also why google wants you to blend, cause it makes them more money. Especially in the long run.
the unethical reason for blending is to cheet and trick users. This works great for you the publisher but sends unqualified users to the advertiser and empties their pockets. Great in short run, but in long run, those advertisers put less into the budget cause they are not getting a good return on their money (alot of users just hit the back button after clicking the link unintentionally). Plus if google thinks your tricking more than treating (hey i came up with that myself!, yeah for me) they will ask you to change it or ban your account. But probably will request the change before a ban. It hurts google because they make money by having "good" turnover rates, if they become known for having crapy converstion, they will have to lower their cost to be able to keep the business and we all loose that way.
Ok, that was just my 2 cents!
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Use the Adsense hook to stylise your links and what not. Digg.com are premium, just look at those links, **** it the big always get bigger 
