If you think about it from the ads company’s perspective, they are trying to put an ad for a product that you are most likely to buy/click on. Even if they have shown you this product before, you might still be most likely (based on their data) to click on it compared to all the other products that they could show you an ad for. Usually the probability of a user clicking on an ad for a product decreases as more ads are shown to them but it is not as drastic as you would expect.
This is the high level reason but as you can expect, it is actually much more complicated in reality so I will not go into more details.
Source: worked on such algorithms for many years
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