Finally have an answer that i've included below. Should be of interest to people who use google.
For the top positions above Google search results, however, we use a
slightly different formula. First, only ads that exceed a certain Quality
Score threshold may appear in these positions. This is why you may have
seen search results pages with no ads above the free search results.
Second, for ads that do surpass this Quality Score threshold, we use the
actual CPC rather than the maximum CPC when determining the ad position
for these spots. This ensures that Quality Score plays an even more
important role in determining the ads that show in these positions. For
tips on improving your Quality Score, please see
https://adwords.google.com/support/b....html&hl=en_US.
Ads in the top positions must also have been reviewed and approved by
AdWords Specialists. Therefore, high-ranking ads may appear to the right
of search results rather than above them until they are approved. To learn
more about ad requirements and guidelines, visit
https://adwords.google.com/support/b...=6129&hl=en_US
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