Here are the same 3 steps I use to save money that you guys are wasting on Google.

Now, lets examine Googles keyword grouping advice: (in other words) Group your keywords in small tightly themed groups: This is good advice.

Next: "Put your keywords together in one group with all match types and set the match maximum CPC" - Bad, Bad Advice.

Why is that bad? Because as you may already be aware of, Google used keyword performance history to help calculate your CPC. This brings in the whole saying of "You are only as strong as your weakest link"

In this case your weakest link is usually the broad match type. If you put your poor performing broad match type in the same group as your phrase or exact match type...it can only accomplish one thing: It will bring down the performance stats...drag it down, tear it down...whatever, but it will come down. You will never be able to reduce your CPC to the optimum amount like this.

So now that you understand that. Let me give you your 3 steps to lowering your CPC. This will start working immediately because you are now ultra targeting your traffic.

1. Group all broad match types together.

Here is how:
Assuming that you have already grouped your keywords by common theme or common root, for example:
fly fishing tips - broad
fly fishing tip - broad

All you do is take these keywords and put them into their own group and set it to broad match type. DO NOT set any other match types with this group.

2. Group all PHRASE match types together.

Here is how:
Now that you have already put your keywords into their own broad match type group along with the common theme. Just repeat the process but now only setting the match type to phrase:
fly fishing tips - phrase
fly fishing tip - phrase

As mentioned before, DO NOT set any other match type with this group.

3. Group all EXACT match types together.

Here is how:
This is the last step that you need to do in order to fully optimize your Adwords Ads campaign. Simply follow one of the first two step with the exception of setting this group to Exact phrase match type.
fly fishing tips - exact
fly fishing tip - exact

By now, you have figured out that this is more work...3 times the work. But you only have to do it once. There are software programs that can help ease the burden of doing everything 3 times over.

Just think of all the money you'll be saving by following this simple method oc CPC reduction.

Google doesn't tell you to do it this way because they are happy taking your money for poor performing campaigns. You will never get your campaigns to perform at an optimized performance rate if you group all the match types together.

The benefits of using this method is obvious when it comes to CPC. You will also be able to track your campaigns better and get rid of poor performing keywords. The difference here is that you will save money.

Times are tough, start saving your money and good luck.