To generate my Adwords campaigns I use Speed PPC. Google it if you want it, it saves times to generate lots of keywords.

This is the process I go through. Please do tell me if I not using the optimized method.

I start with naming the campaign. Ill call it Fruits

Then I choose my "seed" keywords. Ill choose Apple, Apples, Orange, Oranges. I often choose up to 20 seed words.

Then I choose my "extension" keywords. I'll choose 1, 2, 3, 4, Big, Blue, Red. I often choose more than 50 extension keywords.

Then here comes my first question:

Should I create the adgroups in function of the SEED keywords, or the EXTENSION keywords?

Note that I don't know if this makes a difference, It might not make a difference at all. I'm just asking.

Then I create the adgroups, let's say, using the seed keywords. So the ad groups are:

apple
apples
orange
oranges
etc.

Then I go into each ad groups and enter keywords of every possible combination of seed + extention, even if it makes no sense.

exemple in the ad group APPLE the keywords would be:

apple
"apple"
[apple]
1 apple
"1 apple"
[1 apple]
apple 1
"apple 1"
[apple 1]
apple blue
"apple blue"
[apple blue]
blue apple
etc.

In the end, it gives me hundreds, sometimes thousands of keywords. Most of them are useless or inactive because I set my Cost Per Click Maximum at 0.10. But using speed PPC I can set up a campaign like that in minutes, and I still get hundreds of good, cheap keywords.

Anyway just sharing my strategy and trying to learn because I'm new to Adwords. Please tell me if I'm doing anything wrong.

Speed PPC is a great program but my honest recommendation since you're new to Adwords is don't use it at all.

Set up a couple of campaigns by hand first. Yes it's tedious. Yes it makes your brain melt. Yes it sucks.

But it will also help you know what RESULTS you're looking for. Once you know what you need out of it, controlling SPPC becomes much easier.

Secondly, since your account is new, you don't want to bombard it with thousands of keywords that won't convert. Why? It drops your whole accounts quality score meaning you're paying more for EVERY click. It's just not worth damaging the "rep" of your account to try and practice and play with SPPC.

Hand pick a few hundred keywords at most. Hand write the ads for each keyword. Monitor them all and cut them ruthlessly and quickly if they don't perform - meaning if they get views but no clicks cut them. You can always add them back in later to broaden your kw lists and get more views, but for a couple of weeks on a couple of campaigns kill everything that doesn't get you clicks.

Even if you lose money, you'll save money in the long run by having a better QS on the whole account.