We have one ad group for people who search for the type of product we sell. It has keywords like "blue widgets" and text like "We have widgets here."
We have another group for people who search for the name of our competitor's product. For instance, assume we sell Pepsi, we have a keyword for "Coke" and text that says "See why Pepsi is better than Coke." That goes in the "Coke" ad group.
If you sell multiple products, or a product that is known by multiple names, then you might want to create an ad group using the "{keyword}" string with text that says: "Buy {keyword} here." Be very careful with the keywords you put in this group or the text may not make sense.
That's the whole purpose of Ad Groups.
Agreed.
Marketing_C, you'll almost certainly get your best results when your Ad Groups are highly targeted, with a list of specific (as opposed to general) keywords which are all about one thing, and then an crisply written and descriptive ad which is about that very same thing.
Here's a page from the AdWords Help Center with some pretty good basic tips, as you work to get set up for optimum results:
Optimization Tips:
[adwords.google.com...]
Oh, and welcome to WebmasterWorld!
AWA