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[ What does it mean or indicate when there are no ads or only 1 or 2 ads at the top of page 1 and multiple ads at the bottom of page 1 ]

AdWords will only show ads above the organic results if they have an above-average Quality Score, and have bid high enough for placement in the top ad slots. 

So if there are few ads or no ads, in the top ad slots then it means those advertisers that have bid high enough to win the first 2-4 ad slot positions do not have above-average Quality Scores. Above-average Quality Scores are a prerequisite for placement in the Top Ad slot positions.

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