How to optimize Google AdSense codes and its location?

Google Adsense is such a thing where u learn new things every single day......the best ad formats are 300*250,160*600,250*250.....ur ad should be above the fold.....u should add the code at ur most popular post body......u can use the ad just below the post title for best use.....

Thanks Aditya for your prompt reply. Does it violate the rules of Google adsense when we put code just below tilte of post?

Nope its not.....but don't tamper the ad code......"Ads Bu Google" should be there......and try to give itself a distinct look than ur post title or post body.....

I think there are a few other rules as well. For example you cannot place more than 3 ad units on a page. Also, putting it under the title will get you more clicks but it would also be obtrusive for visitors..

Make your website more visitor friendly :)

Placing Ads just below the title may not be a good idea because some titles could be like this "Read below to learn more about xxx", which will be a misleading people to click on the ads. Use it only if you can ensure the title and ad are clearly separated and title will not include any words like "read below", "Tips to .." etc. Appropriate placement can significantly improve your CPC and revenue. Here is my article on increasing CPC through proper placement: http://www.techulator.com/resources/8958-How-increase-AdSense-CPC-AdSense-Tips.aspx

Abhinav, placing more than 3 content ad units may be possible with special permission.  I am using 4 content ad units in my sites (I am not a premium publisher).