What is an Adgroup in Google AdWords?
An ad group contains one or more ads which target a shared set of keywords. You set a bid, or price, to be used when an ad group's keywords trigger an ad to appear. This is called a cost-per-click (CPC) bid. You can also set prices for individual keywords within the ad group. Use ad groups to organize your ads by a common theme, such as the types of products or services you want to advertise.
Each of your campaigns is made up of one or more ad groups. Use ad groups to organize your ads by a common theme. For example, try separating ad groups into the different product or service types you offer.