The Conspiracy Theory that Follows is just that, a conspiracy theory. They are usually BS. However, this one is technically quite possible.
DESTROY YOUR COMPETITION BEFORE THEY BECOME COMPETITION
That is the underlying statement. For this we will take the world of Video Games as we have been doing a video game affiliate test for several months now.
Now lets say there is a person or persons out there that dominates the major PPC markets for “video game rentals”. This could range from several hundreds of dollars a day to several thousands. Now, he realizes that with all things, there are smarter people out there than he is that try to startup video game offers. If they don’t make money in the first month or two (sometimes first week or two), they declare it a loser and move on.
Lets’ say this guy, we’ll call him Vidster, has 100+ unique IP addresses as well.
Vidster wants you to get discouraged and not compete with him. What could he do?
He could fake click your ads. Now he wouldn’t do this himself, he would design a bot to do so. He would use part of his keyword list and with a bot, that goes out on each IP address slowly over time, click on the competition’s ads. He could double or triple your costs.
The moral of the story is to let your campaigns go for months before ending them. Just bump the budget down to $1-$5 a day and let it go. It’s like putting out a fish hook and trolling around until you get a bite. You might find some good affiliate fishing holes this way.