The purpose of AdGroups is to organize the ads within your campaign and strategically direct them to specific audience (or conversion) segments.
AdGroups let you group relevant ads and serve them to a specific segment. If you're running a seasonal promotion that highlights a new product, you can serve ad images containing this product to the associated segment. For example, users who visited http://yousite.com/winter_jackets can be shown ads held within a "Jackets" AdGroup. By serving relevant ads to an interested audience segment, you will increase your click-through rate (CTR) and win more conversions.
- Click into your campaign from the Campaigns table and then click the Edit Campaign button on the right navigation bar.
- Within the Campaign Settings section, click Advanced Options.
- Click the Add New AdGroup button.
You can see and measure performance across each AdGroup. Your dashboard will provide reporting on both cost and conversion metrics on the AdGroup level, which will allow you to test new images and copy as you refine your retargeting. A/B testing like this is easy with AdGroups.