One ad group or multiple ad groups?

Hi everyone,

I have a (hopefully) simple question that someone can answer. Say for instance, I want to create ads for selling cars. Which is the correct way, or more effective way, of creating the ads.
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A. Create multiple ad groups with 1-2 keywords each.
EXAMPLE:

AD1

New Cars
Buy New Cars For Cheap
And Save $$$

With the keywords - 'new cars' and 'new car'

AD2

Buy Cars
Brand New Cars For Sale
Save $$$

With the keywords - 'buy cars' and 'buy car'
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B. Create one ad group with multiple keywords
EXAMPLE:

New Cars
Buy New Cars For Cheap
And Save $$$

With the keywords - 'new cars', 'new car', 'buy cars', 'buy car'
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Any help would be greatly appreciated!

 

See: https://adwords.google.com/support/bin/static.py?page=tips.html#organize

 

From what you put above, example A would be the most effective way of grouping. You want your keywords to be as closely related to your ads as possible.

 

Thank you both!