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According to Google recommended

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How to setup campaigns and advertisements in your AdWords account to be effective, please read the following article for effective settings.

Now that you've mastered your first ad, you're taking steps to create even more ads, right? Before you do, it's important to know the three-layered design of Google Ads. Understanding the relationship between these layers of your account helps you organize your ads, keywords, and ad groups into effective campaigns that target the right audience.

Table of Contents [Hide]

1 How Google Ads Is Organized
2 Reasons you should organize your ads into ad groups and campaigns
3 See your account organization at a glance
4 Google Ads account limit
4.1 Limit campaign and ad group
4.2 Limits on Advertising
4.3 Limiting the Targeting
4.4 Negative Keyword Limits
4.5 Limits for business feeds and data
4.6 Limits on Ad Extensions
4.7 Manager Account Limits
How Google Ads is organized
Google Ads is organized into three layers: accounts, campaigns, and ad groups.

Your account is associated with a unique email address, password, and billing information.
Your ad campaign has its own budget and settings to determine where your ads appear.
Your ad group contains a series of similar ads as well as words and phrases, called keywords, for which you want to trigger the display of your ads.
Set up campaigns and ads in your Google Adwords account
The reason you should organize your ads into ad groups and campaigns
When people search online and they type a word or phrase, they are looking for information closely related to those words. For example, if Eric imports a digital camera and sees an ad for the film reel, chances are he won't click on the ad.

To show search ads of the people you're trying to reach, include relevant ads with related keywords in the ad group. That way, all of your relevant ads could be shown to customers searching for similar things.

A set of ad groups that form a campaign. Campaigns are the primary control for your ad groups, where you can choose:

How much you want to spend on clicks or conversions from your ad
Network and geolocation where you want your ad to show
Other top level settings affect ad group clusters
For example:

Let's say you own an online electronics store and you create a Google Ads account so you can start promoting the products you sell. At the account level, you can choose who else you'd like to have access to your Google Adwords account and preferred payment method for. The top layer of your account might look like this:

For example when setting up an ad campaign
You've decided you want to advertise TV and camera inventory, so you create separate campaigns for each item. Splitting your account into two campaigns ensures that you can spend at least half of your online advertising budget per product area.

Set up campaigns by splitting them up to be more effective
By focusing on camera campaign, you can create different ad groups for different types of cameras, like digital cameras and compact cameras.

For a TV campaign, you can create an ad group for each type of television you sell, such as a flat screen TV or a plasma TV.

Set up a campaign when you need to split into multiple ad groups
In a specific ad group, you want to choose keywords that are closely related to your ad text. As for the digital camera ad group, you can try keywords for different brands, models and prices for the digital camera you sell (make sure you comply with their trademark regulations. I).
Putting it all together, your overall account structure might look something like this:

Set up an overall adwords account
Tips
A common method for organizing your AdWords account is to organize the way your website is structured, with each ad group presenting a different page or category on your website.

See your account organization at a glance
After creating your first campaign, you'll see a “All campaigns” dashboard appear on the left side of your Google Ads account. From this dashboard, you can instantly see how your campaigns are organized. Click on one of your campaigns and you'll see your ad groups as well. This folder structure also allows you to quickly navigate around your account.

Tips

Start organizing your campaigns and ad groups as you create them. After you've created several campaigns and ad groups reorganized after you've created a few campaigns and ad groups lose all the valuable data you've accumulated, which can affect how your ads perform.
According to Google recommended

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