OK- Right now on my website, I have the word "Sponsored" over my google ad. However, would it be allowed to put the text "Welcome to MySite!" over the google ad? Click the link below to view a screenshot of what I am referring to, It's edited, It's not actually like that right now on my site. Opinions please? http://i55.tinypic.com/5p25nb.png
Why can't you? I don't think that is really wrong. Maybe you have to look through the rules, to know if it's (il)legally!
Just have the ad in a good spot and other than that don't do anything that can be seen to encourage clicks on it.
It's a fine line and not clearly defined in the TOS, personally I wouldn't ... once you lose your account that's it!
I don't think it should be an issue since you are not encouraging anyone to click on the ad. I'm assuming the word "sponsored" is part of your site and not coming directly from the ads themselves. It would be an issue if that were actually able to alter the ad.
what is below the ads must also be taken into consideration. You wont be banned only because a bot crawls that text.
If you are not encouraging visitors to click on ads & not altering the adsense script in any ways then you will be fine. what you referred to in the pic is the title area & i don't think Google will have any problems if you edit your title text.
I can say that adding a welcome text above the adsense you got in your site wont be a problem. I do the same in my blogs and its fine with Adsense. No issues at all. You can actually add a welcome text by using easy adsense and typing in welcome into the title box for the adsense code.
Because he is misleading the visitors. The ads are looking like a part of his website. The ad block is like a navigation bar, I can think that I will go to internal page of his site after I click on an ad.. If I click on an ad, I will come back to his site immediately. This will increase his invalid clicks, a guy from Adsense may come his site to check what's going on or adsense computers will automatically disable his site or account because of his high invalid click ratio.