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Valve is a for profit company that decides which games to advertise.
Wouldn’t they just advertise whatever makes them the most money, which would be the games people want to buy? I don’t see this as being radically different from how games were before steam was popular.
The advertisement algorithm is pretty much understood. It depends on wishlist and first day sales.
It’s not like Gabe, or anyone, is sitting there deciding which game gets advertised and which game isn’t. As far as algorithms go, steam one is pretty straightforward and fair afaik.
They are indeed in charge of the ads on their website, not only they can decide what gets featured in ads but they also design the website page and the ads placement as they like.