Each ad is given a quality score, and since your own website will be guaranteed to be the most authoritative source for a keyword search with your own branded keyword(s) in it, by default the quality of your own ads will be much higher than your competition.
This means in practice that the cost for a brand to be shown first on their own branded keywords is much lower than their average CPC, let alone the cost for their competitors to be there.
It will get worse, to the point where to get auto-completed in the omnibox you'll have to pay. TBH I am not even sure if that isn't already the case!
It's called Quality score (soon to be discontinued) and has 3 components. Only one of which is landing page related. And nothing prevents competitors from building "more relevant" landing pages than the original brand.
"I need a lawyer in ___ right now". That lead can be worth a lot.
"Looking to buy a new car today", etc.
If I convince 10 people to do this with me for a day, we could cost them $100,000. We might be able to cost them $1M in a week.
I mostly click on ads as chaff (mostly I block them but sometimes unblock them just do do some random clicking in the hope of confounding some profiles being compiled on me)