Blending is what I use on my site. Blending looks like as if the Ads were a part of the site. Users normally react better to this and will click on the Ads because they look like a part of the site. If you blend Ads correctly your Click Though Rate (CRT) should increase, thus increasing revenue.
To blend, make the background and borders of your ads the same color as the background of your page where the ad is placed. If your site has a white background and you don’t want to spend a lot of time choosing ad colors.
Below is a example of blending
If you want to see my interpretation of ad blending, which has been checked already by google, try http://www.thetutordirect.com. Other then the two phrases that say ‘ads by google’ it can be easy to miss if it is an ad or not. I have seen better, but given my limited computer ability, I figure it is pretty good. (opening page at least). If you want, let me know what you think.
Thank you
Jon Dlouhane
Jon, I think you did a reasonable job blending, but they look slightly out of alignment. You might want to put them on top of each other instead of that table. So have them like
xxxxx
google ad
xxxxx
xxxxx
google ad
Understand what I’m saying?