The first question is easier to answer: no advertiser really knows why an ad works or doesn’t work. So two other questions surface: why do fake game ads work, and why do ad platforms allow them? To address the question asked in the title of the post: the assumption would be that companies run fake game ads because those ads work and deliver profit from ad spend. Whatever the case, the Facebook Ads Library has brought transparency to the diversity of ad creative being used by large advertisers and has helped to expose this strategy.
Some of these ads are egregious misrepresentations of gameplay, such as when footage of a 3D, third-person adventure game is used to depict a 4X build-and-battle game, and some of these ads are simply bizarre, such as when torturous punishment scenarios are used to depict simulation home management games:
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