Creating an AdGroup
It should be noted that a pre-requisite for creating an Ad Group is the creation of an Advertiser and Campaign with instructions found here for an Advertiser and here for a Campaign.
Once you have successfully created both an Advertiser and Campaign, navigate to the Campaigns tab in the Advertising section as depicted below.

On this page you will find an index view of all Campaigns created. Find the Campaign that you wish to create an Ad Group for and hover over the section to the right selecting the groups link shown below.

Once you're on that page, select the Create Group button in the upper right corner which will redirect to a form.

This form should look like the image below. Simply fill out the Ad Group name, select (or create) a Creative Asset Group and optionally fill out the settings for the group below in the Limits, Custom Targeting Criteria, Geographical Targeting, and Time of Day Targeting drop-downs. Once you are satisfied with your entry, click the Save Ad Group button and you will be redirected back to the Campaign's Ad Group index view.
