I read Google's AdSense policies regarding spacing between advertisements and website content, and all they state is "adequate spacing" but I'm not sure what is considered adequate.
Is specifying a 1% padding or even a 10 pixel padding around ads good enough?
Google does not have a strict standard of spacing of Adsense advertisement in a pixel by pixel sense.
The purpose of the 'adequate spacing' terminology is so that users do not confuse navigation elements or content of your website with advertisements.
If your AdSense Banner was on the Navigation bar for example and was indiscernible from content or other navigational items, this may trigger a high bounce rate for clicks which would then trigger Google's automated filters.
Once manually reviewed if your website was deemed too deceptive for user to serve Google's advertising partners you will probably be suspended from the AdSense program.
As your website provides a clear differentiation between Advertisement and Content, it would be highly unlikely that you a) trigger the initial automated filter and b) fail manual review.
Your website seems fine.
Adequate spacing means, the space which is enough to make sure that clicks coming to the ad unit is purposeful not accidental.
So if you are asking about 1% or 10px is good, i recommend 10px. Because percentage is not fixed spacing, when screen size is smaller the space will aslo become smaller. So go a head with 10px spacing
