Objective: Improve your chances of getting your ad clicked and improve your AdWords performance, without having to increase your bids and pay more.
Details: The goal with Single Keyword Ad Groups (SKAGs) are to help make the relevancy between your keywords and ad so strong that your CTR, quality scores, and cost per conversion metrics improve.
All that SKAGs really are, are ad groups with one keyword in them, but in three different match types. This means that if you’re selling popsicles on a hot summer day, the keywords in your one SKAG would look like this:
[delicious raspberry popsicle]
“delicious raspberry popsicle”
+delicious +raspberry +popsicle
Notice how there are no regular broad match keywords
The reason why you want to keep the three different match types in there is because they’ll all perform differently. Start with your top five search terms and build them into their own SKAGs to compare the stats, before and after. Then, if your results do improve, you now have a reason to continue granulating things out.
As you keep going, you’ll want to make sure your search terms are matching your keywords. If they don’t, then extract and create a new SKAG while eliminating the internal competition with ad group level negative keywords.