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I hope someone can explain in detail how to accomplish this. Thanks.
As several others have already explained, you can use channels for this purpose. You will need to make sure that you use custom channels rather than URL channels, though. To learn more about the differences, see: [google.com ]
I would say that I've used channels in the way you describe very sucessfully to optimise adsense earnings. It's deffinitely been my experience that less banners can give more income.