> As a result a large percentage of pages that show Google Ads are not in the search index.
Those results are organic, at least they were not marked as ads. That's even worse, it means the regular crawler is preferring generated phone number sites over blogs. That's the real money waster right there.
> We need to crawl all the pages that serve our ads so that we can show ads that are relevant.
Why? I though Google's business model was tracking users to show relevant ads to them. You say it's more like DuckDuckGo, or the old magazine ads: film magazines get blockbuster trailers, gardening magazines get compost ads.
Either the ads are personalized, so the surrounding content doesn't matter, or the ads are "static", so why track everyone all the time, then?
> If we show ads on google.com we get 100% of the revenue. If show ads on reversephonelookup.it they get majority of the revenue. There is a limited amount of advertiser demand. Instead of manipulating the organic search results, it would be more profitable for google to just show more ads on the search page or inflate the ad price or something.
As your sibling comments imply, this works like a protection racket. The profit is closing the market to webmasters that don't allow ads at all, or that use non-Google networks.