On the blog for my site, Secret Tenerife, the link unit across the top of the content earns, on average, slightly more than the 120 x 600 skyscraper on the same page produces - and, obviously, takes up a lot less space doing it.
On other blogs I have that employ a similar format and placing, the link units also constantly out-perform any ad unit, no matter what size the latter is, nor where it is placed on the page. Others seem to find the same.
It remains to be seen (e.g. you have to test what works for you), if adding a second, or even third, link unit would dilute the earnings they produce - certainly, when Google first allowed us up to three ad units per page, I had tried that on various sites, but it seriously reduced earnings, by “scraping to the barrel” and showing the lowest paying ads - but this does appeal because link units can be placed, without them appearing too obtrusive.
Google announced this change in this post at the Inside Adsense blog, where they also say that “We’re now requiring AdSense publishers to comply with the spirit of our Page Quality Guidelines.”
AdSense Publishers Can Now Use 3 Link Units Per Page
Google Allows More Link Love On AdSense


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