In an AdWords campaign, Keywords are grouped into Ad Groups and Ad Groups make up campaigns. Ads are also triggered from respective Ad Groups. If you have identified 100 keywords to advertise in AdWords, The natural question would be how to structure the campaign?. Is it better to create one Ad Group and put all the keywords in it or is it better to create 100 Ad Groups with one keyword in each. As it turns out, Single Keyword Ad Groups or SKAG is highly recommended by AdWords experts. Although it is a slightly harder strategy to implement, research shows that SKAG can have a huge positive impact on your campaigns.
There are several reasons why Single Keyword Ad Groups works better than any other strategy in Google AdWords. The most important reason is the ability to pin point the bidding to the performance of a single keyword. If a user is bidding at the Ad Group level and the said Ad Group has multiple keywords in it, the resulting bid would be an averaged out value. SKAG strategy avoids this by allowing only performance of a single keyword to affect an Ad Group. Another huge reason is the Ad Keyword relation. An Ad which works for a keyword might not work for another. But Google shows the ad which performs the best in an Ad Group which might not be the best Ad for a Keyword. SKAG strategy ensures that the best Ad for a keyword is always triggered from the Ad Group.
Avoiding competition between keywords is another major goal of AdWords keyword tool. Internal competition can happen between keywords because of the way AdWords is designed. One keyword in Ad Group in all matchtypes other than exact can trigger for multiple searches. This is designed to make AdWords campaign setup easy for customers. AdNabu avoids the two main reasons of internal competition - competition between different matchtypes of the same keyword and competition between long tail and short tail keywords. Our software automatically creates SKAGs with different matchtypes automatically. These Ad Groups also have negative keywords created in them automatically to avoid all competition.