Ad group

From Adylitica

Ad groups are the primary units of AdWords campaigns, they contain ad variants triggered by a set of keywords.

Ad groups live under the umbrella of Campaigns.

It's important to separate ad variants and keywords into distinct ad groups as this will improve quality score and allow for closer monitoring of ad performance.

Ad groups have an overall CPC, however individual keywords and variants within the ad group can be set to have different CPC values.

Keywords

On an individual ad group, many keywords can be added, however it easily can be disadvantageous to do so due to the fact that non-relevant keywords will suffer quality score losses.

Ad variants

Ad variants within ad groups can be set to be dynamically rotated to find the highest CTR variant, or equally rotated to show all variants equally.

One reason why dynamic rotation of ad variants may be a bad idea is that some ad variants that have a high CTR do not have a correspondingly high Conversions rate.

CPC

The CPC is a bid made on keywords, which is then compared against other competitors, quality score and Google's minimums to come up with the actual cost per click of ads.