Though you can't decide which ads appear on your site, Google does a very nice job of assessing your pages and supplying ads that might interest your visitors. For example, if you run a site about the history of window treatments, Google is likely to dish up ads for vintage blinds and specialty curtain rods. That kind of relevance is important, because Google doesn't pay you when somebody sees an ad on your site; it pays you when somebody clicks an ad. So you want Google to fill your space with blurbs likely to interest your readers.
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