Google adsense channel is a facility by google for publisher. From it, we can track how many clicks or traffic which we got from a website. We can use one account adsense, and place adsense code in 200 different domains. To track which website is being clicked, we use the channel. With that, we know which website is having the most revenue, and which website has high CTR (Click Through Rate). You can create a report your adsense revenue based on these channels. Besides using channel for each website, you can also use different channel for different ads placement in one website. For example: you have two ads on your top and left section of your website mywebsite.com. So, you can name your channel topmywebsite and leftmywebsite. This way, you can see which ads if performing well, and which ads is not performing well. You can then remove your ads into better position, or change the ads size. Experiment with your ads position and size and you will soon know which ads and which position is the best.
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This step can be vital for your earnings. These channels you help you to see what is working and what don’t on your website. I use to make changes on one of my pages to test new ad placements using information provided by channels. If you know how to manage your ads, you’ll receive bigger checks.
Robert, I agree with you - I also use it to test ad placements, and more often than not, smaller ad sizes can yield better click-through than their larger counterparts. In my case, most of my sites' link units yield better click-through (thus more money) than the ad units version.
Any feedback from you?