Google Adsense has become a popular free way to make money online thanks to its ease of setup and use. It doesn't provide many methods for customizing the ads that you're allowed to display, but what it does provide can help your ads fit into your site exactly how you want them to and stand out enough for people to notice. The more people that click on your ads, the more money you make.
Instructions:
1) Apply to the Google Adsense program by filling out the application form. Afterward, you'll receive an email to verify that your provided email address is accurate. Click on the link in the email to submit the application. You then have to wait for Google to accept your application.
2) Log in to your Google Adsense account.
3) Click on the "Adsense Setup" tab, and then click on "Adsense for Content." Choose the type of ad (the default is a basic ad unit with text and image ads) and click "Continue." You'll arrive at the main Adsense customization page.
4) Choose the height and width of your Adsense ad block under the "Format" drop-down menu. There are options for horizontal, vertical and square ads of many sizes.
5) Choose the color scheme for your ads in the "Colors" section. Google offers a few pre-made color schemes in the "Palettes" drop-down menu, although many people like to create their own color scheme to blend the ads in with their own site. You can choose colors for the border, title, background, text and links of your ads, and whatever you choose is automatically updated on the sample Adsense unit on the left so that you know immediately what a certain color will look like in action.
6) Choose the font for your ads in the "Fonts" section. Unlike the "Colors" section, you don't have many choices here: Arial, Times or Verdana. Adsense defaults to Verdana.
7) Choose the corner styles for your ad units in the "Corner Styles" section. You can choose square corners, slightly rounded corners or very rounded corners.
8) Click "Continue." Now that you have your ad unit built, you can create a "channel" for it (which is Google's way of allowing you to organize your ads in your account so you know which is which). Keep pressing "Continue" until you reach a button that says "Submit and Get Code." Once you press it, Google will provide you with a block of code that you can place on your website to allow the ad unit to appear.
Tips and Warnings:
Web users have gotten good at recognizing--and ignoring--ads. Many website owners have reported that the Adsense units that perform the best are those that feature a color scheme that blends into their site rather than jumps out. Likewise, certain sizes work better than others. The best-performing unit size is the 300-pixel-by-250-pixel rectangle. Google has a set of strict policies for Adsense that can get you unceremoniously kicked out of the program forever if you're caught violating any of them.
Source - eHow