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325 Use Small Tight Ad Groups When creating ad groups, it is important to keep numerous factors in mind: • Your most competitive or most important terms should usually be in their own ad groups (or perhaps ad campaign) so that they are easy to monitor and so you can write ad copy that is precisely targeted to those terms. • You may want to create a group for misspelled terms. • You may want to create a group for mistyped domain names. • You may want to create ad groups based on personality types. • You may want to create ad groups for your most important products. • You may want to create ad groups for seasonal or special promotions. • Some people also use different groups for contextual ads, due to different ad value and the desire to use different ad copy. There are many ways you can split up your account. By creating and tracking various ad groups, it makes it easier to monitor your return on investment and adjust your ad spend accordingly. Using smaller ad groups makes it easy to have a relevant user experience from search, to ads, to ramthoughtsing page, to conversion. Google offers a free downloadable AdWords Editor tool that helps you organize your keywords into tight ad groups. Deep Keyword Research Using deep keyword research is hugely important. There is something to be said for simplicity and ease of management, but using targeted permutations of your most important terms should drastically increase your ROI. Google AdWords allows dynamic keyword insertion (mentioned above) that allows the search query to drive the ad copy. That increases your chances of having a higher click-through rate and lowers your cost-per-click if you bid on many variations of your most important Google AdWords keywords. Below is a chart of some example term ideas (with the words slightly modified) and the associated conversion data from an actual AdWords account. Notice how the cost per conversion drops off when modifiers are added to the root term. By bidding on these additional keyword phrases, I am paying less for higher targeted leads. Keyword Phrase Cost Per Click CTR Conversion Rate Cost Per Conversion abc tires $0.77 7.8% 1.86% $41.37 abc car tires $0.64 10.9% 1.92% $32.96