Why is First Page Bid Estimate is different from average CPC in Google ADWORDS

I have lately found that a lot of keywords are not allowed by Google. In the ad words campaign one has to raise their
default bid=first page bid. Otherwise that certain keyword is not allowed in the campaign. WHY?

Firstly, i had found a lot of keywords for a certain market which had a low CPC and high traffic.

For example a certain keyword (according Google keyword tool)
"how to get the 6 pack" has 201,000 searches globally and $0.05 CPC with no competition and ad position is Number 1.
But when i started my campaign online it gave me a totally different quote. It said the CPC is lower than the bid to come on the first page. The first page bid is $0.35 which is higher than $0.05 for the same keyword.

Questions:
1) I cannot understand why Google has given me 2 different quotes.
2) If i raise my default bid to $0.35, does that mean that i have to pay $0.35 for a click or will it be $0.05 as told earlier.

Please advice.
Thanks

 

First, please use proper terminology. Your keywords are (likely) still allowed. The system is just informing you that you are not going to show on the first page very often.

See my Adwords FAQ for more. But simply, ads are ranked based on quality and bid. If someone else is outranking you, you are closer to not being on the first page.

Next, the keyword tool is an estimate. It's based on a typical Quality Score. QS is everything in Adwords and most other PPC services as well, they just have different names. Your QS is likely lower than the average. Therefore, your ads are ranked lower which means you need to bid more. The solution is to improve quality.

A five cent estimate in the tool appears to be some default. Take it with a grain of salt. Probably due to not having enough information. Your example of is full of stop words which are ignored for the most part and the sort of phrase not likely to be searched much. Since it doesn't have enough info, it sets the estimate to five cents.

See the FAQ for the basic formula but what you pay is based on your QS and competitor bids and their QS. There's no way of telling and it does change as the whole system is in constant flux. You might pay 35 cents or you might pay 10. Tomorrow may be very different.