I don't think ads are what changed this.
This system doesn't make sense... the incentives for producers don't line up with reality. Producers are incentivized to find ways to break your rules and advertise as if they do it alone, they will profit massively.
I would speculate that if all ads disappeared right now, you would be without a job in mere days. Simply put economies work these days because people buy endless amounts of shit they don't need. The parts of our economies that provide necessities are minority factors today, as where you creep back over 150 years and 'needs' were the vast majority of work in an economy.
I'm definitely not saying we're in a good state currently, but breaking our current state without a state replacement plan isn't going to put us in a better position.
How did it we accomplish it for the earlier 99.99% of human history?