Keyword research can give you great insight into customer problems, needs, desires, and intent. Categorizing the keywords you’ve found is an important step in putting together potential campaigns and deciding on which ones are worth pursuing in your organic or paid search efforts.

I believe that categorizing keywords into the finest groupings that make semantic sense is the right way to do it; often I’ll have a category with 2, 10, or perhaps 30 keywords at the most. Later, when some of the categories are turned into actual campaigns, this tight organization and relevance will tend to pay off with higher quality scores.

Since Google Adwords takes into account the relevance of...