Not exactly. Google orders and displays advertisements based on expected value (to Google). Then the winner of the slot pays the lowest market-winning price.
Overly simplistic example: eBay bids $1 max and Amazon bids $2 max. People searching for eBay have a 10% probability of clicking on an eBay ad and a 2% probability of clicking on an Amazon ad.
Expected value to google:
Ebay - $1 * 10% = $0.10 EV max
Amazon - $2 * 2% = $0.04 EV max
Ebay is displayed even with a lower bid because the expected value of the display is higher. The bid is never adjusted -- eBay is specific about its bid or its maximum bid and the market of expected value decides who is shown. Amazon could just as easily bid $5.01 and show up. And when the ad is clicked, if Amazon is the only bidder at $2, then Ebay would pay $.50 for that click because that is the lowest bid that wins the position using the EV.
To apply this to the Snapchat Conversation -- One might expect if Snapchat operated this way, then its probably fair to assume that EveryTown would have had a much higher relevancy score than NRA, so should have been able to win the campaign for much lower $$. But in paid placement like this, everyone is paying for placement not for performance. It is not an EV market. Hence the dilemma.
I work at Google. I pretty sure what I said before is true, bids are adjusted based on quality and relevance to the search query, not just predicted click trough rate.
Also this does not apply to snapchat, because afaik they do brand advertising based on impressions (CPM) and not clicks (CPC).
Overly simplistic example: eBay bids $1 max and Amazon bids $2 max. People searching for eBay have a 10% probability of clicking on an eBay ad and a 2% probability of clicking on an Amazon ad.
Expected value to google: Ebay - $1 * 10% = $0.10 EV max Amazon - $2 * 2% = $0.04 EV max
Ebay is displayed even with a lower bid because the expected value of the display is higher. The bid is never adjusted -- eBay is specific about its bid or its maximum bid and the market of expected value decides who is shown. Amazon could just as easily bid $5.01 and show up. And when the ad is clicked, if Amazon is the only bidder at $2, then Ebay would pay $.50 for that click because that is the lowest bid that wins the position using the EV.
To apply this to the Snapchat Conversation -- One might expect if Snapchat operated this way, then its probably fair to assume that EveryTown would have had a much higher relevancy score than NRA, so should have been able to win the campaign for much lower $$. But in paid placement like this, everyone is paying for placement not for performance. It is not an EV market. Hence the dilemma.