An advertiser should group their campaigns by:
Correct Answer
type of product or service
Why is this the correct answer?
An advertiser should group their campaigns by type of product or service. Organising campaigns by product or service category is Google Ads best practice because it allows each campaign to have its own budget, bidding strategy, and targeting settings aligned to the specific characteristics of that product or service. For example, a retailer might have separate campaigns for electronics, clothing, and furniture — each with budgets and bids calibrated to their different margins, competition levels, and seasonal patterns.
Why are the other options wrong?
number of keywords
Number of keywords is not a logical organising principle for campaigns — keyword volume should inform ad group structure within campaigns, not campaign creation itself.
maximum cost-per-click (CPC) bids
Max CPC bids vary by keyword within campaigns and should not determine how campaigns are structured — bidding is a tactic within a campaign, not a campaign organisation principle.
number of ad groups per campaign
Number of ad groups per campaign is an outcome of good campaign structure, not a criterion for how to group campaigns. Campaign organisation should be driven by business logic.
Real-world example
A home improvement retailer creates three campaigns: Power Tools, Garden Furniture, and Kitchen Appliances. Kitchen Appliances has a higher margin and gets a larger budget. Power Tools runs aggressive bidding before Father's Day. Each campaign's performance is clean and easy to report on — impossible if all products were in one campaign.
Official documentation: https://support.google.com/google-ads/answer/6167122
About the Google AdWords Fundamentals Exam (Retired)
The AdWords Fundamentals exam was retired when AdWords became Google Ads.
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