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Campaigns vs. Ad Groups Explained

02/12/2025

The House Analogy: Understanding the Hierarchy

A simple way to visualize how your account is organized

Think of your Google Ads account like a House.

Campaigns are the Rooms (Kitchen, Living Room). You decide big things here, like the renovation budget or the temperature (Location/Settings).

Ad Groups are the Drawers inside those rooms. This is where you organize specific items (Keywords & Ads) so they are easy to find and match.

Google Ads uses a strict 3-level hierarchy. You cannot change this order:

Account Level: (Your unique ID, billing, and user access).

Campaign Level: (Where you spend money).

Ad Group Level: (Who you target and what you say).

Campaigns vs. Ad Groups: Feature Breakdown

Which level controls your budget, location, and keywords?

The biggest mistake beginners make is trying to control the wrong thing at the wrong level (e.g., trying to set a budget for just one keyword). Here is a quick breakdown of permissions: 

FeatureControlled at Campaign LevelControlled at Ad Group Level
BudgetYES (Daily Budget)❌ No (Shares campaign budget)
LocationYES (e.g., New York only)❌ No
Bidding StrategyYES (e.g., Maximize Clicks)❌ No
Keywords❌ NoYES (The "Who")
Ads (Creatives)❌ NoYES (The "Message")

ClickSambo Pro Tip: Since Budgets are set at the Campaign level, you should always put high-risk or high-value products in their own separate Campaign. Don't let a "test" product drain the daily budget of your "best-seller."

A Real-World Example: The Online Shoe Store

The difference between a "messy" and "clean" structure. Content: Imagine you are selling shoes. Here is why structure matters for your Cost Per Click (CPC).

The "Messy" Way (Bad Structure)

Campaign: "Shoes"

Ad Group 1: All Keywords mixed together (Hiking boots, ballet slippers, running shoes, red heels).

The Problem: If someone searches for "Hiking Boots," they might see an ad for "Red Heels" because they are all mixed in the same bucket. Your Quality Score will drop, and you will pay more for every click.

✅ The "Clean" Way (Good Structure)

Campaign A: "Men's Boots" (Budget: $50/day)

Ad Group 1: Hiking Boots (Ads show hiking boots).

Ad Group 2: Work Boots (Ads show steel-toe boots).

Campaign B: "Women's Heels" (Budget: $50/day)

Ad Group 1: Stilettos (Ads show party heels).

Ad Group 2: Wedges (Ads show summer sandals).

Decision Framework: When to Create New Layers?

A checklist for expanding your account

Create a New Campaign if...

You need a different Budget: You want to spend more on Product A than Product B.

You need a different Location: You want to target the UK for one product and the US for another.

You have a different Goal: One campaign is for "Sales" and another is for "Brand Awareness."

Create a New Ad Group if...

You need a different Message: You want to show a specific headline to a specific user.

You have different Keywords: The search terms are thematically different (e.g., "Repairing Shoes" vs. "Buying New Shoes").

Next Step: Once your structure is live, ensure you aren't paying for bot traffic on your new campaigns. Check your fraud protection settings in the ClickSambo Dashboard.

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