First Page Bid

This is one of the new offerings from Google. First Page Bid, commonly known as FPB among the online experts, is purely based on your Quality Score

The first page bid estimate is the approximate maximum cost-per-click (CPC) bid it would take for your ad to reach the first page of Google search results when the search query matches your keyword exactly. The estimate is based on the Quality Score and current advertiser competition for the keyword.

This helps you to plan your bidding strategy.

But meeting the FPB will not guarantee a placement. As per Google your Ad Placement depends on Quality Score, your cost-per-click (CPC) bid, your budget and account settings, and user and advertiser behavior.

QS is no longer keyword static, but rather will vary by user query, geotargeting, etc.
Every time someone clicks on you ad, Google will recalculate your quality score.
Moreover now there will not be any Inactive KWs and minimum bids. You can bid as low as you want for your keyword, still it would be active.

In AdWords Editor, the first page bid estimates for your keywords are displayed on theKeywords tab, in the column labeled 'First Page Bid Est.'

Here's a list of factors that make up Quality Score, which in turn helps determine your keyword's first page bid:

1. Historical click through rate (CTR) of the keyword and the matched ad on Google
2. Your account history, which is measured by the CTR of all the ads and keywords in your account
3. The historical CTR of the display URLs in the ad group
4. The quality of your landing page
5. The relevance of the keyword to the ads in its ad group
6. our account's performance in the geographical region where the ad will be shown
7. Other relevance factors (Only Google and God know this)