I would disagree. You left off (3) Your marketing was so far off as to not reach your target audience. To me that seems the most likely answer.
To identify if the problem lay in the two options I presented you do have to ensure that the people who saw it are part of your target market and that you targeted your communications well.
For A/B testing, organic results work best, AdWords truly is just to get your number of hits up and maybe get ranked on search engines - but it's unlikely anything useful comes from it.
Sounds like a person who never really did anything on Adwords.