Adsense says putting code near an image is against the TOS if the ads look like they have something to do with that image. It recommends putting a boundary between the ads and the image.
So if our adsense is delineated from the image with a boundary, it’s perfectly okay. We are also encouraged by Adsense to work with our blogs to get more clicks w/o violating their TOS.
This is a useful plugin for blog which always has a photo per post.
Thanks.