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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. In best practice, ads should be grouped based on keywords and targeting.
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.
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, unless you have it set up differently.