No the relationship isn't direct. As you add more advertising content to videos people will watch less and the advertising revenue would go down - this makes it not directly correlated.
> Same goes for paying content creators less.
In the same way, it's not a direct relationship. As you pay creators less they're less incentivised to create content for you to attach your advertising to.
To prove by absurdity, if you added an hour of un-skippable advertising to a two minute video, few people would watch the video.
Now the annoyance of ads also serves the direct purpose of advertising their own service.