There are two hierarchy levels in Google AdWords: Campaign Level and Ad Group Level. Here’s an explanation about each level.
1. Campaign Level
Geographic Targeting – This option enables you to choose the geographical location where your ads would show up. With this option, you can choose very specific locations such as a city or several specific cities. If you only target one city, then just include the name of the city to your keywords. The more narrow your target market is, the better. The drawback, however, is you might not get enough impressions and clicks.
Network & Device Targeting – The network option will allow you to choose whether you wanna show your ads on the search network (that uses keywords), or display network (that uses contextual or placement targeting). Be careful in using display network with the “broad reach” as it will lower your click-through-rate, thus lowering your quality score as well.
As for the device targeting option, choose wisely and analyze where what type of device your target customers would be using such as desktop, laptop, tablets, or mobile devices.
Budget & Bidding – If you run multiple campaigns, then you can set a budget for each campaign. Set the amount you are willing to allocate to spend daily. Be mindful on your bid. Google would recommend you to use automatic bidding which will most likely cost you a lot of money. Take control of your spending and set your bids to manual.
2. Ad Group Level
Average cost per click (CPC) – In ad group level, you can decide the default cost-per-click. You can also edit the CPC for each targeted keyword. Make sure to set the default bid to minimum. If you will receive a warning saying “below first page bid” then you may set the bid manually on that specific keyword.
Ad Copy – You have to create the actual ads for each of your ad group. It is highly recommended to create at least 2 ads for each ad group to test which one works better or gets the highest click-through-rate. Adwords will display them all, but the frequency of each ads shown depending on the option you chose in the main settings. Be sure to rotate the ads evenly for a more effective split testing.
Keywords – Add your keywords. Group your keywords tightly according to type of product or service, or by geographic location. Do not forget to block the unwanted words by adding them as negative keywords.
Landing page – Your landing page must provide product or service or information needed by your visitors. Do not use a landing page that has nothing to do with your keywords, because that can drive your visitors away. Relevancy is the key to achieve success on google adwords advertising.