AdWords
3.2K members online now
3.2K members online now
Get started with AdWords - learn the basics to get set up for success
Guide Me
star_border
Reply

Does adding another ad group to a campaign cost more money?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I am new to a company and they already have an AdWords account set up. Lets just say I am struggling like a fish out of water. I have read that it is best to have between five and 20 keywords in each ad group, but in some of the ad groups already set up there are 40-100 keywords. My question is, does adding another ad group cost money? or is the cost covered in the campaign?

3 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by topic author Natalie W
September 2015

Re: Does adding another ad group to a campaign cost more money?

[ Edited ]
Top Contributor
# 4
Top Contributor

Hi Natalie, further to Pete's reply, as he's said, each Campaign has its own budget so adding more Keywords cannot actually affect how much you pay; however each Keyword you have in a Campaign needs to be "fed" by budget - that Campaign budget is shared between all the Keywords. 

 

Imagine a TV game show where people are allowed into a sealed box to "grab" dollar bills that are blown into the box.  If they're just two people (Keywords) and they're allowed enough time, they'll collect all 100 bills blown into the box.  They won't both end up with $50 - it'll depend upon how fast (popular) they are.  One might get $60, the other $40.  If you then put 10 people in that same box, and give them 100 bills to chase, they'll still collect $100 but their share will be lower per person.

 

"Share" is important, because to get the best out of AdWords (or at least to test it properly) you need to give each Keyword a fair chance to show for every search that matches the Keyword so if you restrict the spend - if you have too many Keywords and too low a budget - each Keyword struggles for share and may not perform as well as it could.  So, in theory if you add Keywords you should be prepared to increase budget.

 

As an aside, I would say that if your existing structure has 40 - 100 Keywords per Group, that is almost certainly too many (especially 100!).  Google actually recommends no more than 30 Keywords per Group and I'd personally recommend an even lower number.  Groups should be tightly themed and it's hard to imagine 40 or more words and phrases that all mean exactly the same thing.  For example, you may have "running shoes", "dress shoes" and "ballet shoes" all in the same Group "Shoes" (because they're all shoes) but you should really have a Group for each type.  In fact, you should have a Group for leather dress shoes, Nike running shoes, etc.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

View solution in original post

Re: Does adding another ad group to a campaign cost more money?

Top Contributor
# 2
Top Contributor
HI Natalie W,

Most accounts are setup as CPC, cost per click, while others are CPM (cost per thousand impressions) or CPA (cost per action). Moving keywords from one ad group to new ad group does not cost money in itself, But, it could get you more clicks on those keywords and increase your spend in that way. If those keywords convert at a profitable rate, it didn't cost you anything, it earned you more.

All ad groups in a campaign use the same budget.

Hope this helps,

Pete
petebardo -- Deadhead doing AdWords

Re: Does adding an ad group to a campaign cost extra?

Collaborator ✭ ✭ ✭
# 3
Collaborator ✭ ✭ ✭

Hello Natalie W, 

Welcome to the Community

 

The cost is established by you when you set the daily budget at the campaign level, all the ad groups in that campaign will use that daily budget even if you Add more Ad Groups.  You can read more from here in the section "Control your costs" :

 

https://support.google.com/adwords/answer/1704424?hl=en

 

The payment is per click when a searcher clicks on your Ads , not when you create campaign elements like Ad Groups if you keep the same Campaign budget. If you increase your campaign budget than yes you could have higher costs.

Marked as Best Answer.
Solution
Accepted by topic author Natalie W
September 2015

Re: Does adding another ad group to a campaign cost more money?

[ Edited ]
Top Contributor
# 4
Top Contributor

Hi Natalie, further to Pete's reply, as he's said, each Campaign has its own budget so adding more Keywords cannot actually affect how much you pay; however each Keyword you have in a Campaign needs to be "fed" by budget - that Campaign budget is shared between all the Keywords. 

 

Imagine a TV game show where people are allowed into a sealed box to "grab" dollar bills that are blown into the box.  If they're just two people (Keywords) and they're allowed enough time, they'll collect all 100 bills blown into the box.  They won't both end up with $50 - it'll depend upon how fast (popular) they are.  One might get $60, the other $40.  If you then put 10 people in that same box, and give them 100 bills to chase, they'll still collect $100 but their share will be lower per person.

 

"Share" is important, because to get the best out of AdWords (or at least to test it properly) you need to give each Keyword a fair chance to show for every search that matches the Keyword so if you restrict the spend - if you have too many Keywords and too low a budget - each Keyword struggles for share and may not perform as well as it could.  So, in theory if you add Keywords you should be prepared to increase budget.

 

As an aside, I would say that if your existing structure has 40 - 100 Keywords per Group, that is almost certainly too many (especially 100!).  Google actually recommends no more than 30 Keywords per Group and I'd personally recommend an even lower number.  Groups should be tightly themed and it's hard to imagine 40 or more words and phrases that all mean exactly the same thing.  For example, you may have "running shoes", "dress shoes" and "ballet shoes" all in the same Group "Shoes" (because they're all shoes) but you should really have a Group for each type.  In fact, you should have a Group for leather dress shoes, Nike running shoes, etc.

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: Does adding another ad group to a campaign cost more money?

Google Employee
# 5
Google Employee
Jon,

Thank you for a great analogy and explanation about how keywords work with your budget!

Re: Does adding another ad group to a campaign cost more money?

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
So to start a small biz local targeted campaign with low cost, as a beginner, not knowing anything, is it better to only have 10 keywords, mostly long tail ones, rather than having 40 or more keywords alternating?
And is it modified search the same as phrase match (versus broad)?