Organizing your account structure is very important to how you optimize and measure your success. Be sure to read this article and watch this great video by Wordstream.
Video Resource: https://www.youtube.com/watch?v=FIfFf9nsP-k
There are two levels of organization within a Google Ads account: campaigns (the higher level) and ad groups (the lower level — you can have multiple ad groups in each campaign). Think about campaigns as representing larger categories in your business, and ad groups as representing smaller, more specific sets of products or services. For instance, if you run a craft supply store, you might create these campaigns and ad groups:
Campaign 1: Knitting and sewing
Ad Group 1: Yarn
Ad Group 2: Needles and hoops
Ad Group 3: Fabric and embroidery thread
Campaign 2: Kid’s crafts
Ad Group 1: Paint and markers
Ad Group 2: Glitter and glue
Ad Group 3: Craft kits
Creating separate campaigns, ad groups, ads, and keyword lists for your products helps keep your ads relevant, making sure that someone who’s looking for “glitter glue,” for example, doesn’t accidentally see your ad for “embroidery thread” and think you don’t have what they need.
The more focused and specific your ads are, the more people you can reach who are interested in exactly what you have to offer.