How to block competitors clicking on your AdWords ads?

I noticed that every time I run a certain set of keywords on AdWords it works great for the first month and then my costs suddenly go up and conversions decline significantly. My friend suggested that my competitors notice these ads and start clicking on them to exhaust my daily budget. To test this theory I started collecting user IPs through Google Analytics and introduced a custom report (by IP) for paid ads (i.e. AdWords). It looks like my friend was right, see attached image for the top...

How to block competitors clicking on your AdWords ads?

from Google AdWords http://ift.tt/1REXYiY
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