Just came across some post and people say it is allowed and then again somewhere here I have read that it is against TOS. is it or it isn't?
There was a post on adsense blog a few months back which said, No Ads near navigation areas. It seems they are in the above picture, just be cautious. Better ask adsense whats right and whats wrong when i doubt. The above picture would look OK for some and not OK for others. Dont go by what we tell you better ask google.
Its definately against the tos. Anything that involves misconceiving viewers into thinking its not an ad is against the tos.
Even I read it few days back on adsense blog, no adsense placement should be placed in a way which confuses the user to click on ads. Here is the post at adsense blog.
Your ads titles have the same colour and font as your nav buttons. Try to change the nav buttons style to look like they're separate.
No offense, but the placement doesn't even look good. It appears that you are attracting only first time viewers and not the type of people who would return to a site because I know I wouldn't return.
thats a great layout though! fuck google. id run it like that for a few weeks and then change it before the end of the month