Yep.

And I suspect (would love some real data from scammy advertisers) that this is a bigger factor than most folks appreciate.

If you're a regular business that sells clothes or food or SaaS or insurance or whatever, online ads are a) not your whole customer acquisition system (you have regular marketing, word of mouth, maybe sales people, maybe brick-and-mortar brand presence, physical advertising, etc.) and b) not part of your expense sheet that you want to spend tons of time on.

The "b)" there leads companies to either overspend on stupid (but unlikely to be flagged) ads, or to try to keep their ad spend as low as possible for the highest reward, because they think of it like opex. After all, they have all the normal expenses of a normal business to worry about in addition to ad spend. Sure, there are outliers here who spend almost all their non-product money on online ads, but not most ordinary companies from Verizon to Dave's Local Auto Insurance to Safeway.

So "good"/ordinary advertisers aren't generating super high flag rates, but they're probably either a) spending lots of money without churn/support-needs risk or b) aren't spending that much ... compared to scam-ads-only businesses. Sure, google would prefer more upstanding customers in category "a)", but they're a near-monopoly and some of that growth is expensive to chase, while the scammers are beating a path to their door.

If you're a scam-ad business that produces malware or LLM-written gacha games or whatever, your product expenses are minimal and, if your business is lucrative, you can spend very large amounts of your balance sheet on ads for scam delivery channels. Tiny businesses in this area are likely to have whale-sized ad spends and a strong likelihood of growth (vertical as they get bigger/greedier, or horizontal as they keep spinning up new businesses to keep ahead of the law and bad press). I bet they punch above their weight ad-spend-wise, in other words.

You thought the unit economics of a SaaS business were good? Well, wait until you see the unit economics of a Play Store whitelabeled gacha game app with a credential stealer inside!