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.

Ad Groups allows you to create groups with similar themes. Let’s say you sell desserts, beverages, and snacks on your website. You’d want to create ad groups containing a keyword list, focusing on the product that you’re trying to sell. The keyword list tells Google that you want to show ad for these products only on websites related to them.

The video below will describe more about Ad Groups, and how you can use Ad Groups to advertise on Google:

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Google Ads: Determining the price of views