Is Google Adwords is cost effective any more?

[Jake]

Could be one more competitors snagging some of your business that has put you into the red.

I don't know to what degree you have optimized things, big time professional Adwords advertisers are encouraged if they can get near break even on their first iteration, knowing with further ad copy, keyword selection and landing page optimization they can turn it around. You certainly should be employing all the tracking you can handle (Analytics?) to measure the exit rate at each stage of your sales process and should a regular split test user, Google webmaster tools has split test support that won't be confused with cloaking. I assume you know all about ad-landing matching for better quality scores and lower ad costs.