What is the right way to create campaigns and ad groups?

Hello Everyone
I am confused about how to manage the PPC campaigns and what is the correct way. Your help would b highly appreciated. Thanks in advance.

1.) How should I create campaigns? I should create one campaign for one Product. Let’s take an example to get a better understanding. For example, I have 3 three products in my inventory T-Shirts, Trousers, and Shoes. For these products (including their variations) I would create 3 Auto and 3 Manual Campaigns, one for Shirts, 2nd for Trousers, and 3rd for Shoes. Further, for each 3 Auto campaigns > each campaign will have only one ad-group. For example, if I create a campaign for Shirts then I will create only one ad-group for Shirt in the auto campaign.

2.) What I am Currently Doing: For Auto Campaign I have created one main campaign and there are different ad-groups for each product. If I take the above product examples that would fit like: One Main auto Campaign > then 3 ad groups > one for Shirts, one for Trousers, and one for Shoes in one main campaign only.

PLEASE SUGGEST WHICH STRATEGY IS BEST AND CORRECT? Either 1 or 2

Both of the strategies you’ve mentioned can work, but there are pros and cons to each approach. The optimal strategy depends on your specific goals, the size of your product catalog, and your level of campaign management complexity. Let’s break down the two strategies:

Strategy 1: Separate Campaigns for Each Product Category

  • Pros:
    • Clear Segmentation: Each campaign is focused on a specific product category, making it easier to manage and optimize.
    • Precise Budgeting: You can allocate budgets more precisely for each category.
  • Cons:
    • Higher Management Overhead: Managing multiple campaigns might require more time and effort, especially if your product catalog is large.
    • Potential Duplication: There might be overlaps in targeting or keywords if not managed carefully.

Strategy 2: Main Campaign with Different Ad Groups

  • Pros:
    • Simplified Management: All products are managed within a single campaign, which can be more convenient for smaller product catalogs.
    • Easier Budgeting: You have a single budget for the entire campaign.
  • Cons:
    • Less Granular Optimization: It might be harder to optimize performance for each individual product since they’re all within the same campaign.
    • Limited Budget Control: It might be challenging to allocate budgets effectively if some products require more ad spend than others.

Which Strategy to Choose:

  1. Product Catalog Size: If you have a relatively small product catalog, the second strategy (single campaign with different ad groups) can be simpler to manage.
  2. Granular Optimization: If you want to have more control over optimizing each product category’s performance, the first strategy (separate campaigns) can be beneficial.
  3. Budget Flexibility: If you want to allocate different budgets for different product categories, the first strategy allows for more precise budget control.
  4. Automation Tools: If you’re using automation tools or software to manage your campaigns, the decision might depend on how well these tools integrate with your chosen strategy.
  5. Testing and Scaling: Depending on your campaign goals, you might want to start with one strategy and test its performance before scaling it across your entire product catalog.

Ultimately, there is no one-size-fits-all answer, and what works best for your business depends on your objectives, resources, and the complexity of your campaigns. If you’re unsure, you could consider testing both strategies with a subset of your products to see which one yields better results in terms of ad performance, efficiency, and ease of management.