I have two different websites in one niche. I would like to run a site placement campaign on my blog that gets solid traffic to advertise my PHPBay CJ site. Since I own them both and one has great traffic I would really like to take advantage of paying cpc and recoup part of the money back as Adsense income on the other. Is this against Googles TOS?
I thought about creating my own banner ad but my ctr's are better on adsense than the other banners I am currently running.
That's stupid, you don't need to pay for clicks coming from your own site... if you find that adsense gets a better CTR, make your ad look exactly like adsense. Easy as that, and it doesn't cost a thing.