What is the term for the practice of creating ad groups with a small number of highly relevant keywords and ads?

The term for the practice of creating ad groups with a small number of highly relevant keywords and ads is known as "Tightly Clustered Ad Groups." This approach is commonly used in pay-per-click (PPC) advertising campaigns, particularly in platforms like Google Ads.

By using tightly clustered ad groups, advertisers can improve the relevance between the keywords, the ads, and the landing pages, which significantly enhances Quality Score. A higher Quality Score can lead to better ad placements and lower cost-per-click (CPC). This strategy ensures that each ad group focuses on a specific theme or product, making the ads more targeted and relevant to user searches, therefore increasing the likelihood of clicks and conversions.

Ultimately, tightly clustered ad groups facilitate better performance tracking, allowing for more effective optimization of the ads over time based on performance data. This practice is essential for maximizing the efficiency and effectiveness of an advertising campaign.