Well it's certainly good we can use a filter, look at this ad that was showing up on my MYSPACE RESOURCE site: mymyspacelayouts.net
As suggested by AdsenseGold, I have been blocking (blacklist) MFA sites to get higher Adsense earnings.
Oops! MFA --> Made For Adsense Generally, sites with nothing other than screen scrapped content and adsense. Adsense will be shown in a prominant position and the content will be somewhere nearly invisible. fact 1 : MFA sites on your adsense pay very less.(0.01$ to 0.05) fact 2: Google doesnt display the ads with maximum rate. They have a secret rank* price per click, which translates to maximum eCPM. It is argued that, MFAs use catchy words and other no so good tactics to maximize the rank(reason: they get a better CTR, and more eCPM at less cost), so they can bid low and still get above much better paying ads, in the race to get a position on your ad space. The question, does it really worth to block it? Argument 1: Google always try to maximize the eCPM, so no need. Argument 2: They pay a very low rate, so better block them. The eCPM doesnt maximize alwaays with MFA ads. Also, bad to have a useless site advertising on your site. Hope it is clear for everyone. I am also waiting for more test results!
This is the only legitimate reason I can think of to use the competitive ads filter for anything other than ads from competitors. I tried playing with my filters to get better written ads in paying positions on my site. Guess what happened? The AdWords publisher eventually figured out that the ad they wrote sucked and they rewrote it. And guess what my filters did to this reworked advertisement? Unless you stay on top of your competitive ad filters multiple times a day, there is no way to make any kind of useful permanent adjustment.
The competitive ad filter is very useful but for fucks sake, do some research on your OWN. Why rely on some 3rd party list when they probably don't even apply to your site? get your hands dirty.
What difference does it make if the advertiser rewrites a 1 cent ad? the point is to block these low-paying ads. It doesn't take a rocket scientist to realize which ads are low-paying and which ads are by adsense publishers who are also advertisers. Do some research people. Go to the advertiser's site and see if the site has Adsense ads. If so, block them. Low-paying ads are like cockroaches and we are the RAID!