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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.