I wrote this tool to generate banners for adsense and the like... its not quite done yet but I thought others might find it useful when it is done. You just give it a keyword and it will spit you out 4 example jpegs with example adsense code underneath. Its currently just running on a local box. http://www.shoemoney.com/nextel.jpg
That's a borderline topic. If there is a clear destinction between the ads and images there shouldn't be much of a problem. However this is a grey area so you need to be careful.
you mean like contextual? that would be a little weird.... not really impossible but resource wise it would make much more sense to have the banner locally.
actually nevermind, what i have in mind is impossible. i was thinking that the script could grab an image based on what the ad said
anything is possible.... but its not going to come from me. I honestly will probably never open this to the public I just wanted to test to see how hard it would be to do.
http://www.askthebuilder.com/AsphaltBlacktop.shtml this is one of google case studies and if u look at the top u will see that he put images related to adsense and the image is above ads and without border
I have always seen atleast 20% increase with using images in my adsense revenue. I always got approval before hand to run them though.