Excerpt from: Don’t Waste Time on Google AdSense
The biggest advantages of using channels in Google AdSense is that you can maximize ad revenue and target the performance of specific types of ads. Google AdSense channels provide advertisers with the exact placements they seek for their ads, and in turn you can obtain premium pricing by giving advertisers what they want. Also, channels allow you to track how well specific types of ads are performing, so that you can alter your ad placements to feature better performing ads.
Custom channels in Google AdSense allow you to track the performance of specific ad units based on your specified criteria, such as ad formats, ad positioning, or topics. For example, you can create a channel for ads that pertain to a specific topic, such as Google AdSense related products. You can also create a channel for ad units that appear at the top of each page or on the homepage. And you can also create a channel for only image ads, only video ads, etc. In all, Google AdSense provides you up to 200 channels to customize.
There are a couple of key advantages of using channels in Google AdSense. First, channels allow you to track the performance of each type of ad unit on your website. With channels, you can track whether text ads perform better than image ads, or whether ad units targeted to one topic perform better than ad units targeted to another topic, or whether ad units at the top of your webpages perform better than ad units in your sidebars.
Secondly, you can turn any custom channel into an ad placement on which advertisers can choose to place their ads, meaning you can increase ad revenue by giving advertisers exactly what they want. When you create ad placements out of your channels in Google AdSense, advertisers can target their ads by topic channels or by position on your webpage or website. The greater the placement options you offer advertisers, the more competition for your available ad space and the more ad revenue you will generate.
See: What makes people instantly click Google Ads now?
Avoid common pitfalls and make money with Google AdSense by reading Don’t Waste Time on Google AdSense.