1. Place ads above the fold. The 'fold' is the area of the screen a visitor sees without scrolling down the page. If a visitor arrives on your page, but decides it is not relevant to his needs he will 'bounce' or leave your site immediately. However, if an AdSense block sits above the fold, the visitor may see an ad related to his needs and click on it.
2. Place ads at the end of content. On content rich pages where you have articles focused on helping people solve a problem, place an ad block directly underneath the content. If the content is interesting and relevant to the keywords used by the visitor to find your page, he will read to the end of the article. Clicking on an ad related to the topic he has been reading about, is a natural progression if he is interested in the subject.
3. Blend ads to match your blog. Ads that have the same color background and borders as your site are more likely to be clicked, as visitors don't see them as ads but more as content related to your site. Make the title of the ad a bright bold color that stands out, or make them the standard blue link color. Internet users are programmed to click on blue links, and using a link color they are accustomed to can help increase CTR.