I started a new campaign yesterday for a widget, an Acme X23. I bid a decent amount, but was told by the automated bid critic that my keyword rank was low, and that my bid was below the first page bid. The "bid critic" gave an estimate that was 50% higher than my bid for a first page placement.
This isn't a competitive phrase. If I do a search for it, I usually find no ads, or maybe I'll find one or two.
So why wouldn't Adwords put my ad on the first page if there's no other advertisers?