In terms of relevance is it the natural conclusion that you may as well have a different ad for each search term.
edd1, I've seen a few advertisers who do this with excellent results, but it is certainly not the only approach (or even that common). Another way to structure things (that is less labor intensive but still very effective) is to sort your offerings into categories that make sense. These categories then become your Ad Groups.
Give each Ad Group a carefully groomed and tightly targeted group of keywords that are all about the same thing that the ad is about. In other words, a group of keywords that are different ways of searching for the same thing. (Since different people search for things in different ways.)
For example, let's say you carry a variety of widgets, including new widgets, wholesale widgets, lightweight racing widgets, and so on. And you also have vintage widgets that you want to sell to widget collectors. So you'd create a different Ad Group for each category of widgets, with appropriate keyword lists.
For example, a "Vintage Widgets" Ad Group might have a keyword list something like this:
collectable widgets
collectible widgets
collectors widgets
collecters widgets
vintage widgets
old fashioned widgets
old style widgets
used widgets
previously owned widgets
antique widgets
and so on...
In other words take the category of 'vintage widgets', and imagine the many ways that people might search for them. Some advertisers like to use common misspellings of hard-to-spell words, also, as shown above.
It would also be wise to included a carefully chosen list of negative keywords too. For example if you don't carry books, brochures, videos, or dvds about vintage widgets, nor do you run a vintage widget club, nor offer free widgets - then your negative keyword list would start something like this:
-books
-brochures
-vidoes
-dvds
-club
-free
and on and on...
I know this example is kind of silly, and the keywords list is not exhaustively thought out, but I hope it'll give you the idea of how to put together groups of related keywords, rather than having one keyword per ad.
AWA
