Relevancy is everything when it comes to Google AdWords. Per Google, “The AdWords system is designed to match our users’ needs as closely as possible to relevant ads. This ensures a positive user experience so that users click on AdWords ads more often, while maintaining the advertising value the program provides to our advertisers.”
Since inception, Google AdWords has introduced several updates to their algorithm to ensure they deliver the highest quality ads to the right audience. One of the most important measures implemented was Quality Score, which ultimately determines how much you pay per click and how your ads are ranked in the search engine results. Read Google’s help section for detailed description of Quality Score as well as how it’s measured for Search vs Content network.
Account structure and keyword grouping are very important factors in building effective and profitable PPC (pay per click) campaigns with high Quality Scores. Gone are the days when advertisers could throw thousands of keywords into a single ad group. Now, in order to achieve high Quality Scores, advertisers must group their keywords into tightly themed and well-organized groups with highly targeted ads. Create as many small, highly themed ad groups as necessary. Depending on the account, I aim for groups with no more than 50 to 100 keywords, but smaller groups of 20 or less are often more ideal for certain websites.
The idea or process of categorizing keywords into themed groups may seem daunting. But never fear, there are tools to help make your job easier. If you aren’t sure where to begin the process, try Google AdWords Editor’s free Keyword Grouper tool. Find instructions for how to use the simple feature in AdWords Editor help section. You can also research other free and/or paid tools by Googling “keyword grouping tools”.
NOTE: When moving keywords into smaller, more tightly themed ad groups, they don’t lose their history. However, sometimes the AdWords system does need a few days or longer to “reacclimate” recently moved keywords with the ads and landing page in their new ad group. Generally you’ll find a handful of keywords in any ad group generate the most clicks, leads and/or orders. I would strongly advise leaving your best performing keyword in its existing ad group, so as to not hinder volume. Instead, move all other lower volume keywords into new ad groups. My Google reps have advised this as well.
More relevant keyword groups can result in higher click through rates and lower minimum bids – so get in there and reorganize and optimize! And remember, optimization isn’t a one time thing – you must constantly monitor Quality Score and performance metrics for new areas in need of further optimization.