Ok, this is another really obvious tip but it can’t be stressed enough. There are a number of reasons why you want to have targeted adgroups. I will explain how to create targeted adgroups and what the benefits are to doing so.
First, take your entire product line and divide it up into as few main groups as possible… each of these groups will be a campaign in google. Next, create an adgroup not only for every product, but for every keyword family. A keyword family is a group of keywords that for the most part, are just a variation of one keyword (word or phrase). For example, if you sell widgets in various forms, don’t create one adgroup for all of your widgets. Instead break your widgets down by how they are searched for such as blue widget, widget extender, or microsoft widget. By doing this, you can create an ad that contains the exact keywords the searcher is using. Both the searcher and adwords like this and you will be rewarded with a good CTR and quality score. There is a way to show the searchers exact query in your ad, but searchers have figured out that advertisers that use this technique don’t really have what they’re looking for.
Another benefit to targeted adgroups is keyword management. You’ll find that some keywords for a product merit a higher max cpc while other keywords for the same product don’t. It’s difficult to manage adgroups that have several keywords with different max cpc’s and when you’re running your adgroup reports, each keyword in an adgroup that has a max cpc that is different than the default cpc shows up on a separate line, making management of those adgroups confusing.