Agreed on the non-intrusiveness. I want the Ad space be limited to a fixed box at the bottom of the blog page. Fit in before the comments section. That way it does not distract the user from reading the content.
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Yeah, that sounds like a good way to do it. I'm absolutely against the idea of inserting ads into the body of the post itself or up near the top. That would be horrible. As long as it doesn't get in the way and make a nuisance of itself I'm fine with it.