Importance:
AWA
AdWordsAdvisor says that only one ad per advertiser will show on any particular search.
AdWordsAdvisor Says: [
Link to quote]
Still here, maoley - a few loose ends to tie up ;)
You are correct. When you use the same keyword in multiple places, only one ad will show at a time. As you suggest, this is to prevent a "single advertiser from occupying too many ad slots...".
Which ad will show? Well, the system will favor the one with the higher Max CPC. If both (or all) have the same Max CPC, then it will favor the one with the highest CTR.
