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With Search ads and Shopping ads the ad will be shown based on the keywords and targeting you (as the advertiser) choose.
With Search ads, Google will display the ads with the highest ad rank (combination of how much you are willing to pay and how relevant your keywords and ad are for the user’s query). If a prospect types a keyword that you have selected then you go into an auction against your competitors to have the ability to show an ad to that person. Only one of your ads will be eligible for any specific search, so over time the ads that Google thinks is best end up being shown more often.
With Google Shopping, ads are also displayed based on ad rank, but more than one product is eligible to be shown at the same time. If the same search term covers several of your products and they are all relevant, you may show multiple products to the same searcher.
Google Display Ads are different. With Google Display, targeting is based on intent and interest. Ads are shown to a person based on the topics they’re interested in, their demographics, which webpages they visit, how often they click ads, and what they have searched for in the past.
With display, Google will typically show the ad that it thinks will get the best Click Through Rate (CTR), unless you have it set up differently. You can also choose options like “Rotate Evenly” but Google still tends to prefer ads that it knows perform well, so you will see that Google will favour some ads over others even if they are the same banner dimensions.
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