Getting ranked at #1 will do little for your web traffic if no one is searching for your key phrases. A lot of SEO companies promise high rankings knowing darn well that its a cinch when there's no one competing simply because there's no traffic to be gleaned from it.
Here's an example . . .
I'm in the marketing software business and I just came out with a new tool that creates an exit survey on a site when a visitor leaves. If you do a search for "exit pop" or "exit pop up" you'll see there are quite a few competing sites.
In spite of all these competing sites, I ranked rather quickly at #9 by simply creating a blog that points to my sales page. I wrote two quick articles, published them and submitted each to the social networks.
Piece of cake because no one else had updated their exit pop sites in a long time due to the fact that, even though there are thousands of competing sites, they're all competing for less than 50 searches a day.
On the other hand, I also promote the best article submission software on the market. I dominate the searches for the product name, of course, but I wanted to target traffic to the most popular key phrase relating to the product, "article submission."
I put together a blog, just like for the exit pop, but with this one I update it almost daily with good, solid content.
Regardless of how much content I put on the blog, I can rarely get ranked above #64. Why? Because I get 30 to 40 Google Alerts every day about new articles submitted for "article submission". The key phrase gets 640 searches day, so competitors are actively trying to grab those hits.
So there's a big difference between competition and active competition!
The work around is to target the long tail key phrases relating to the main one. You do this by clustering smaller sites, like blogs, optimize them for the less popular key phrases and point them to the main key phase site.
This will give you back links, and get these smaller blogs ranked higher adding more "weight" to them. You'll start drawing traffic from searches for the lesser key phrases to your main one.
This works! I'm actually getting more hits than I'm supposed to for most of the key phrases I target, and it didn't cost me a penny.