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I've been running a campaign for about a year and a half now and the campaign has been setup by location. I'd have one campaign targeted for a specific region. And then I would duplicate the ad groups for each campaign. I have 5 ad groups targeting different areas of my business).

This has worked reasonably well.

It just occurred to me that it might easier if the campaign structure were reversed: 5 campaigns: each campaign focused on a different area of business and divided into 20+ adgroups (based on location).

Will this screw up my campaign if I switch the structure? I have 10's for QS and I don't want to lose that!

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First of all: You cannot target locations on an ad-group level. This is a campaign setting and even with the new enhanced campaigns there is no way to do so. Your structure seems sensible as it is and I don't think it makes sense to change it from what I can tell.

Having said that, a restructuring of campaigns can have a short-term effect on quality score, however this effect should be negligible depending on the size of the campaigns.

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