When Google announced their algorithm change to penalize sites using too many ads, ones that appear above the fold, the first, if not only response was, "how much is too much?"
The first, best answer is, thanks to some clarification offered by Google's Matt Cutts - during a Google hangout/video chat session - it's not a numbers game. Google hasn't written their algorithm to punish sites with, say, 20 ads above the fold, as opposed to the site owner who only has 19 showing. No, from the Cutts/Google perspective, the algorithm alteration inspects pages to see how the space, especially above the fold, is being used.
In fact, Google isn't concerned about the number of ads at all. Instead, they just don't want these ads - however many are appearing above the fold - taking up too much space. Because of the information was given during a Google+ Hangout session, as of this time, there isn't any video of it to post, although Cutts indicates if the video passes the quality control inspection, he may make it available to the public.
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