Short answer
A keyword grouping tool sorts a long keyword list into small ad groups that share one theme, such as a single service, so each group's ads can closely match its keywords. That matters because Google's Ad Strength rating looks at how relevant your ad text is to your keywords, and Google recommends at least 2 responsive search ads rated Good or Excellent in every ad group.
How to use the Keyword Grouping Tool
- Paste your keywords, one per line, or two columns with a value such as volume or cost.
- Choose to group by shared word or shared two-word phrase, and set a minimum group size.
- List words to ignore, such as town names or "near me", so they do not become groups.
- Check each group and use "move to group" for keywords in the wrong place or left ungrouped.
- Export a CSV or the Editor paste format and import the groups into Google Ads Editor.
What is keyword grouping in Google Ads?
Keyword grouping means splitting your keywords into ad groups that each cover one theme. Each ad group gets its own ads, so a group built around water heater repair can carry headlines about water heater repair instead of plumbing in general.
Tight themes help your ads match what people typed. Google's Ad Strength rating looks at how relevant your headlines and descriptions are to your keywords, and one of its recommendations is "Include popular keywords". That is hard to do when one ad group holds dozens of unrelated searches.
No list yet? Start with the Keyword Idea Generator and send its ideas straight here.
How does the tool group keywords?
It looks for words your keywords have in common. You choose how strict to be:
- Shared word puts every keyword containing the same word, such as "replacement", into one group. It is quick, but themes can be loose.
- Shared two-word phrase groups keywords that contain the same pair of words, such as "water heater" or "drain cleaning". Themes are tighter, and more keywords may end up ungrouped.
Each group is named after its theme. Keywords that fit nowhere go to an ungrouped list, and "move to group" lets you place any keyword by hand.
Words to ignore and minimum group size
Town names and "near me" show up across many keywords without describing a service. Add them to the ignore list and you get a "drain cleaning" group rather than a "near me" group.
The minimum group size stops a theme with only a keyword or two from becoming an ad group of its own. The tool also accepts a second column next to each keyword, such as volume or cost copied from a CSV.
How big should an ad group be?
Capacity is not the problem. Google's account limits allow up to 20,000 ad groups per campaign and 5 million ad group targeting items per account.
Relevance is the real limit, so ask whether one set of headlines can speak to every keyword in the group. A responsive search ad holds up to 15 headlines of 30 characters each, and Google recommends at least 2 ads rated Good or Excellent in each ad group.
If a keyword needs a headline of its own to make sense, it probably needs a group of its own. Here is a simple example for a plumbing company:
| Ad group | Keywords | Why it stands alone |
|---|---|---|
| Water heater repair | water heater repair, water heater not heating, leaking water heater | Urgent problem, repair page |
| Water heater installation | water heater installation, new water heater, tankless water heater install | Planned purchase, installation page |
| Drain cleaning | drain cleaning, clogged drain, slow kitchen drain | Different service and landing page |
How do you get the groups into Google Ads?
Export the Editor paste format, which lists Campaign, Ad group, Keyword and Criterion Type for every keyword. Google's guide to preparing a CSV file says each row must describe a single entity, which here means one keyword in one ad group.
In Google Ads Editor, choose Account > Import > Paste text and paste the rows with the header row first. If you save a file instead, keep it as CSV, because Editor doesn't import XLS files.
Keyword grouping mistakes to avoid
- Grouping by empty words. Words like "best", "local" or "company" produce groups with no real theme. Add them to the ignore list.
- Mixing jobs that need different ads. "Water heater installation" and "water heater repair" share the phrase "water heater" but need different headlines and pages. Move them apart.
- Forgetting the ungrouped list. It can hold specific searches worth keeping. Place them by hand or drop them on purpose.
- Grouping a messy list. Clean it first with the Keyword Match Type Tool: lowercase, remove duplicates and strip invalid symbols.
- Stopping at keywords. Each finished group needs its own ads. Write them with the Google Ads Copy Generator, using the group's keywords as its main keywords.
Sources
- About Ad Strength for responsive search ads (Google Ads Help)
- About responsive search ads (Google Ads Help)
- About your Google Ads account limits (Google Ads Help)
- Prepare a CSV file (Google Ads Editor Help)
- Keyword close variants: Definition (Google Ads Help)
Updated 2 October 2026 by the Paid Pilot team. Google Ads is a trademark of Google LLC; Paid Pilot is an independent agency.