Dear Jacquelyn
Yes. Your ads should match your Keyword if you want good results. And keep in mind Google Adwords are build around the Ad groups. Never ever put all your keywords in one ad group and fogot it.
Use tightly held keywords in one Ad group and track it. Use Exact match, Phrase match and broad match all three option in your ad group. Tweak in the Copy of ads. But Headline is very important. try to have Exact Keywords in the Headline.
Arvind Kumar