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Once you have generated your list of keywords, the next step is to organize them into groups. An ad group is a set of related keywords and keyword phrases. Grouping ads together helps organize what can be a lengthy list of keywords and phrases into groups or sets of related ads for easier management.
A focused, themed ad group has many advantages. Perhaps most important is that it enables you to write very specific ads for well-focused ad groups. All of the keywords in an ad group can have the same ad copy. The performance of each keyphrase affects the quality and determines the CPC for others in the group. Therefore, the ability to judge the right level of grouping is a useful skill. Many writers on PPC strategy emphasize grouping and regrouping keywords and keyphrases as the main optimization strategy. We think that grouping should be one component of optimization, not the entire focus.