The idea that privacy needs to be conceded in order for a healthy ad market to exist is false.
I agree with "fewer" and strongly disagree with "worse quality."
Anyway, I don’t begrudge anyone who has worked in the ad business, but I do wonder if folks might be happier optimizing for something of real lasting value in comparison to the gambling business.
ads == worse quality
You can't in practice verify that clicks or impressions are real, as opposed to initiated by bots, without correlating them with real human behavior.
If you have an idea for how to verify a click or impression was real without also gathering some kind of data, go make ten billion dollars selling that technology.
I fully understand why advertising companies would be opposed to this, it's in direct opposition to their value prop. As a consumer, though, I don't want anyone who is not the entity I'm interacting with to know anything about me.
Track purchases coming from ads?
High-value advertising revenue generally comes from very specific brands targeting very specific users.
Of course you can do certain kinds of targeted advertising without user profiles, but I don't see how that would work on Facebook.
Maybe the problem with online ads isn't the targeting or lack thereof but that the well has been poisoned by allowing even the worst possible scum and the users reached their breaking point and learned to ignore them, while the higher quality in real-world advertising is enough to even keep people paying for advertising (in the form of buying magazines)?
Some companies are willing to pay that much more for the prestige of showing up in the "real world", just like some brands might maintain unprofitable flagship stores.
Another reason is "because they have to charge that much". Which means that if fewer companies are willing to pay that much, more classic media outlets go out of business, as they can not lower prices further.
Lastly, you can't accurately measure how inefficient these forms of advertising are, whereas online advertising makes it easy to see whether ads are a net loss or not.
On top of that, extremely course information can be gathered without tracking users. For example, you can probably get a country level location and maybe even language from the request the browser sends.
However, if you sell, say, artisanal hot sauce, you'd pay more to target an affluent person that likes spicy food, rather than some random person that may be just be googling how to make macaroni and cheese.
