Comment by benatkin

They're losing business that they don't want. Silicon Valley culture has embraced saying no, firing clients and customers, choosing the right audience, etc. This even fits into finding product-market fit. You don't try to please everyone, and find a well-defined segment. So to Google it might not seem like it's getting bad at all. To them, maybe the trash took itself out, they got rid of that annoying customer who complains about their marketplace, whereas they appreciate the quiet reporting of an ad that's against the ToS...