It's not really a problem when the model is to focus on making a great experience for paying users and just dumping ads on free users.
The revenue generation focus and incentive alignment is with paying users not advertisers. If the ads don't make as much money or have a more limited audience that's fine.
Obviously the entirety of Google is structured so this isn't the case, but in products I like better than Google products (Substack, Spotify, Apple) the focus is on paying customers. Ads, if they exist at all, are only on freemium versions of the product.
The revenue generation focus and incentive alignment is with paying users not advertisers. If the ads don't make as much money or have a more limited audience that's fine.
Obviously the entirety of Google is structured so this isn't the case, but in products I like better than Google products (Substack, Spotify, Apple) the focus is on paying customers. Ads, if they exist at all, are only on freemium versions of the product.