Any insight as to how Google chooses which ad to display if each person is bidding the same amount? Example: I'm bidding $15 for keyword "digitalpoint.com" with destination URL "digitalpoint.com" Competitor is bidding $15 for keyword "digitalpoint.com" with destination URL "digitalpoint.com" Result: Competitor's ad is always showing although we are both bidding the maximum.
From my understanding, adwords works on its own algorithm also. Your ctr on other ads, your spending, your wording, your budget all play a factor.
The one with the highest Ad Rank is the one that gets displayed. To learn how ads are ranked, read http://adwords.google.com/support/bin/answer.py?answer=6111
It all depends upon your QS (Quality Score). Quality Score depends upon various factors. some are mentioned below: 1) CTR 2) Ad. Variation 3) Landing Page 4) Bid Amount 5) Daily Budget This might help you.
Ad history from the other ad, if you both have the same quality score and bid, is the largest factor in determining which ad shows.
All things being equal, the ad with the highest CTR rate wins. Since the other ad is there first with an established CTR, you are SOL. I would still put up the ad, if the other persons campaign exceeds their daily budget, you will start getting impressions and CTR. Also, use the preview tool to test keywords that trigger only your ad.
It's simple, he's been there longer and therefore his quality score is a bit higher. I've seen guys that simply cannot be knocked off the top spots because they have such a good history, you could bid whatever you wanted and not touch them.