Look at the products / services you are selling. If they don’t seem competitive as compared to the competitors then it doesn’t matter how great campaign you are running. If we assume you are providing the best deals and services then there would still be an issue of brand name.
FYI, we tried bidvertiser.com last year, traffic was massive but when we calculated ROI, we disappointed. We simply stopped ad campaigns and started to focus more on services and products that we offer.
The reason behind my comment is, your post seems like you are blaming on Adwords but there is no reason to blame. Ad campaigns simple shows an advertisement of our products to their audience, they cannot do anything if people prefer somebody else.