Don't forget that gas prices are on the rise and this too can provide a dampening affect on sales .. folks are unsure where this is going (try up and out of orbit for oil/gas prices)...
This is when you really need to focus in on how to better serve the traffic you are seeing....offering specials, discounts...etc...in order to convert some to sales..
Best to always focus on better conversion concepts even when traffic is dropping off seasonally....
Make you wonder if G$$gle lads nailed all converting traffic, and now sucking it out dry.
Can you hook up tracking of some sort to your ads? Get ad tracking soft, redirect all clicks through it, at least you'll know IP addresses of those who clicked.
First line of defence - see if you can find a pattern in IP addresses.
Second line of defence - see if IPs are public proxies.
Third line of defence - and I've been getting lots of clicks like that lately, basically "some user with high-speed internet" - see if this IP is "unidentifiable", i.e. it will give you a network, but no location. If you get enough of these - suspect click fraud. I do get lots of these from G$$gle lately.
Now, if this IS click-fraud, I'd give you a hint - who is benefiting the MOST from this (ain't your competitor, he's also purchasing ads, and he is not my competitor). Makes you wonder....