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Many PPC advertisers spend a lot of time optimizing their ad campaigns around a list of keywords and target each specific keyword to a landing page. They’ll have one ad for all of their keywords and each keyword bid based on that ad. In the past, this was an acceptable way to manage a PPC campaign, but it’s not the best way today.

If you really want to optimize your PPC campaign, increase your quality score and decrease your bid per click, you should create ad groups. It will increase your ROI.

The way to build ad groups is to take a few keywords that are related to each other and group them into one group. Then write an ad for each of your groups. Make sure each group is targeted toward a specific landing page so that you are matching a unique ad to a set of keywords, called an ad group, and simultaneously a landing page that is optimized for that list of keywords. Your ad groups should consist of a handful of keywords – I’d say no more than five to ten.

Here’s an example:

    Ad Group A (5 keywords) PPC Ad A Landing Page A
    Ad Group B (7 keywords) PPC Ad B Landing Page B
    Ad Group C (10 keywords) PPC Ad C Landing Page C
    Ad Group D (6 keywords) PPC Ad A Landing Page A

Notice the similarities between ad groups A and D? They target the same ad and landing page. That’s because the keyword list is similar, but different. The landing page is optimized around both lists of keywords and the ad as well. Your keywords may be something like this:

    Ad Group A – widget, widgetize, widgeted, widgets, widgeter
    Ad Group D – red widget, widgetized, widgeted for red, red widgets, widgeters

The idea is to get specific with your targeting. Drive it down so that you are targeting the specific audience you want to do business with. Increase your PPC quality score and your ROI goes up as well.

2 Responses to “How Ad Groups Can Improve Your ROI”

  1. Couldn’t agree more that small, highly-focused ad groups are essential for PPC success. I recently worte an article about having one keyword per ad group http://www.alanmitchell.com.au/techniques/keywords-per-ad-group/ which is the other extreme. Generally, a balance between relevancy and practicality is found with around 5-20 keywords per ad group, as in your example.

  2. Couldn’t agree more that small, highly-focused ad groups are essential for PPC success. I recently worte an article about having one keyword per ad group http://www.alanmitchell.com.au/techniques/keywords-per-ad-group/ which is the other extreme. Generally, a balance between relevancy and practicality is found with around 5-20 keywords per ad group, as in your example.

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