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Adsense The best way of Earning. Easy to use and easiest method of earning for bloggers. But some conditions are also present that you can read in T&C of google adsense. A webmaster wanna place ads every where, but you can't do this. Limitation is present, like you can use only one 300x600 ad unit. At a time you can display 3 Ad units, but with this you can place three text-ad units.
So means I wanna say that a good use with intelligence is required. Utilize the all possible things, but don't create mess.
Best Ad Unit Size:
You can't create ads with your custom size, google provide pre defined size, so use it. Generally 728x90, 300x250 and 336x280 ad units give highest results. But 300x600 is also looks good and attract users for click. According to me Tall and Thin ad-units don't make good impressions.
Note: Bring Traffic From U.S Free!
Text Ads Also make High Revenue:
Generally, I see that webmaster like Image ads, I know it looks pretty, but text ads also provide high revenue, so don't ignore them. Always use combination of both.
Search Box Ads:
You can use this for search query. Google allow two AdSense for search boxes ad-units. What is the benefit of It? In this you can earn from relevant ads, that show on search results page.
Use perfect Color Combination:
Yes this one is very important, Google allow you to customize color of your text ads. It provide some pre defined options but you can make it according to you theme to make it more attractive and for more clicks. According to me don't use simple blue link ads, give it color of theme, it will defiantly increase revenue.