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by genewitch 1609 days ago
It's two different parties. You've a website. Google says your ad space is worth '3rd place bid' and pays you out 'your share' of 3rd place. The advertiser that 'won' the bid for ads on your site pays out the 2nd place bid' to Google.

The monetary difference between second and third place bids? Google pockets that plus the fee they take for 'brokering' the ad sale.