About organizing annotation into groups
Annotation groups are useful for organizing map document annotation because they make it easy to toggle the display of many pieces of related text. In addition, you can associate an annotation group with a particular layer so its text will be automatically turned on or off as the layer is turned on or off in the table of contents.
You can create a new annotation group using the New Annotation Group command on the Draw toolbar. Annotation groups are also created for you when you convert labels to map document annotation.
When you add new annotation or move existing annotation between annotation groups, you should be aware of the active annotation target. Any annotation you add to your map using the Draw toolbar tools when you are in data view, as well as any map document annotation you add while you are in layout view and working inside the data frame, will be added to the active annotation target. Any annotation that you paste from the clipboard will also be added there.