Google Ads Account Structure in 2024: The Death of SKAGs & The Rise of Hagakure

If you learned Google Ads before 2020, you were taught one golden rule: Granularity is King.

You were told to build SKAGs (Single Keyword Ad Groups).

• Ad Group: Red Nike Shoes
• Keyword: [red nike shoes]
• Ad Copy: "Buy Red Nike Shoes."

It was perfect. It was precise. It got 10/10 Quality Scores.

In 2024, this structure is actively destroying your performance.

Google's algorithm has fundamentally changed from a "Contextual Engine" (matching text to text) to a "Behavioral Engine" (matching user intent to solution).

To win today, you must abandon hyper-segmentation and embrace Consolidation. This guide explains exactly why, and how to rebuild your account using the Hagakure and STAG methodologies.

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Part 1: Why SKAGs Died (The "Data Density" Problem)

To understand why structure changed, you must understand Smart Bidding.

Smart Bidding (tCPA, tROAS) relies on Machine Learning. Machine Learning relies on Data.

The Math of Fragmentation

Imagine you have 30 conversions a month.

• SKAG Structure: You have 30 Ad Groups. Each Ad Group gets 1 conversion/month.
• Consolidated Structure: You have 1 Ad Group. It gets 30 conversions/month.

Google's AI cannot learn from 1 conversion a month. It is statistical noise. The algorithm stays in "Learning Limited" forever. It bids mostly at random because it has no confidence interval.

In the Consolidated structure, the AI sees 30 signals. It detects patterns ("Oh, people convert more on Mobile at 8 PM"). It can optimize.

The Rule of Thumb: An Ad Group needs 3,000 Impressions per week or 50 Conversions per month to run optimally. SKAGs make this mathematically impossible for 99% of businesses.

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Part 2: The Modern Methodologies (Hagakure & STAGs)

There are two dominant frameworks replacing SKAGs today.

1. The Hagakure Method (The Google Recommended Way)

"Hagakure" is a structure promoted directly by Google. It focuses on simplifying the account to align with URL structures rather than keywords.

The Principles:

• One URL = One Ad Group. If you have a landing page for "Running Shoes", you have one Ad Group for running shoes.
• Broad Match Keywords. You use running shoes, jogging sneakers, marathon footwear (all Broad Match) in the same group.
• Dynamic Search Ads (DSA). You layer DSAs to capture queries you didn't think of.

Why it works: It maximizes data density. It gives Broad Match + Smart Bidding the widest possible playground to find conversions. The Downside: You lose some ad copy relevance. If someone searches "Marathon Shoes" and sees a generic "Running Shoes" ad, CTR might drop slightly.

2. STAGs (Single Theme Ad Groups) (The Performance Agency Way)

This is what we use at AdsManagement.co. It is the middle ground between the chaos of Hagakure and the rigidity of SKAGs.

The Principles:

• Group by Semantic Theme.
• Theme 1: "Nike Running" (Keywords: nike running shoes, nike joggers, nike marathon shoes).
• Theme 2: "Adidas Running" (Keywords: adidas boost, adidas runners).
• Match Types: We typically use Phrase Match initially, then expand to Broad Match once conversion data allows.
• Ad Copy: The ad speaks to the Theme ("Shop Nike Running Shoes"), not the specific keyword.

Why it works: It maintains high Relevance (Quality Score) while still aggregating enough data for the algorithm to learn.

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Part 3: The Ideal Account Structure for 2024

Here is the exact hierarchy we build for clients ranging from SaaS to Ecommerce.

Level 1: Campaigns (Budget & Objective)

Create separate Campaigns ONLY when you need to control:

1. Budget: You want to spend exactly $50/day on "Brand" and $100/day on "Generic".
2. Objective: Lead Gen vs Sales.
3. Geography: USA vs UK (different intent/shipping).
4. Efficiency Target: High Margin Products (tROAS 200%) vs Low Margin (tROAS 500%).

Do Not Create Campaigns for:

• "Desktop vs Mobile" (Let Smart Bidding handle it).
• "Exact Match vs Broad Match" (Combine them).

Level 2: Ad Groups (Thematic Landing Pages)

Each Ad Group should direct to a specific Landing Page (or Product Collection). If two keywords go to the same URL, they probably belong in the same Ad Group.

Level 3: Keywords (The Signals)

• 3-5 Starting Keywords: You don't need 50 keywords.
• "manage google ads" (Phrase)
• [google ads agency] (Exact)
• google ads company (Broad - Only if using tCPA)

Level 4: Ads (Responsive Search Ads)

You only need 1 Responsive Search Ad (RSA) per Ad Group.

• Headlines: 15 slots. Fill them all.
• Descriptions: 4 slots. Fill them all.
• Ad Strength: Aim for "Excellent", but don't obsess over it if it forces you to write garbage copy.

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Part 4: Special Structures

The "Alpha/Beta" Campaign (Is it still valid?)

Classic Strategy: Run "Beta" (Broad) to find terms. Move winners to "Alpha" (Exact). 2024 Verdict: Mostly Dead. Google's "Exact Match" is no longer Exact (it includes "Close Variants"). Moving a keyword to its own campaign splits the data (see Part 1). It is better to just negate the bad stuff and keep the good stuff in the main Weekly/Monthly setup.

The "Brand" Separation

Always, always, always separate Brand into its own Campaign.

• Campaign: Search - Brand
• Keywords: [My Company Name], "My Company Name"
• Strategy: Manual CPC or Target Impression Share (Abs. Top).

Why? If you mix Brand and Non-Brand, your ROAS will look fake.

• Brand ROAS: 2000%
• Non-Brand ROAS: 200%
• Mixed: 1100%. You will think you are a genius, but you are just harvesting people who already knew you.

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Part 5: Implementing the Change (The Transition)

If you have a legacy SKAG account, DO NOT delete everything overnight. You will shock the system and kill performance.

The "Slow Migration" Plan

1. Identify the "Zombie" SKAGs: Find Ad Groups with 0 conversions in last 90 days. Pause them. (You just cleaned 60% of your account).
2. Cluster the Winners: Look at your top 5 producing Ad Groups.
   • Group A: "Red Shoes" (10 conv)
   • Group B: "Crimson Shoes" (5 conv)
   • Group C: "Scarlet Footwear" (2 conv)
3. Merge: Pause B and C. Add their keywords to Group A.
4. Update Ad Copy: Ensure Group A's ad copy covers "Crimson" and "Red".
5. Wait: Let it run for 2 weeks. Watch the CPA stabilize.

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Part 6: External References & Authority

Why should you trust this approach?

• Google on "Simplifying Account Structure": Google explicitly states: "Consolidating your traffic helps Google's machine learning technology to work better."
• Search Engine Land on Hagakure: The original breakdown of the methodology.

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Conclusion & Audit

Your account structure is the skeleton of your advertising body. If the skeleton is broken, the muscles (Bidding) cannot work.

If you are seeing "Learning Limited", high CPCs, or erratic performance, your structure is likely too granular.

Is your account stuck in 2018?

Get a Free Account Structure Audit. We will map out your consolidation strategy for free.