Your new client’s AdWords account has one campaign with one ad group that contains a list of hundreds of keywords. Which best practice should you follow when re–organizing this client’s keywords?
Create new ad groups with several keyword match types
Create new ad groups with with related keywords grouped together
Remove half of the keywords from the ad group
Create one ad group for every five keywords
Well, in general yes. But i bet experienced marketers would consider no 2. Creating just one group pour each single keyword with different match types is a way to go. But its an another topic. For Google and for fundamentals an answer is clear. “An ad group contains one or more ads which target a shared set of keywords. You set a bid, or price, to be used when an ad group’s keywords trigger an ad to appear. This is called a cost-per-click (CPC) bid. You can also set prices for individual keywords within the ad group. Use ad groups to organize your ads by a common theme, such as the types of products or services that you want to advertise.”
Use ad groups to organize your ads by a common theme. For example, try separating ad groups into the different product or service types you offer.
Read more here: https://support.google.com/adwords/answer/6298?hl=en