Let's go back to banner ads that are "targeted" based on what type of website you're looking at, rather than based on vacuuming up as much private info as possible about users.
You appear to understand the situation, so I'm not sure why you bring this up as a problem. If a business is utterly incapable of operating without resorting to an unethical business model, then the solution is to shut down the business rather than abandon ethics.
I have no expertise in this, but I don't see why anyone would pay for banner ads for more than pennies on the dollar if tracking is an option.
Wouldn't removing tracking change the economics?
>You appear to understand the situation, so I'm not sure why you bring this up as a problem.
It is a problem, just not one that I think is more important than the benefits it comes with.
>If a business is utterly incapable of operating without resorting to an unethical business model, then the solution is to shut down the business rather than abandon ethics.
I agree, but weigh the impact of other industries that rely on that business as well. It would be a very unpopular move, and given the lobbying in the US, it's unlikely to pass here. And if it passes in the EU that might have other negative impacts in partitioning the web even more. It's a balancing act, and the solution is not as clear cut as "ban tracking in advertising". Knowing lawmakers, do you think this would differentiate between a paid service keeping a user logged in and, say, google ads? I bet the paid service would have an option in the subscription menu to upgrade, is that tracking in advertising? Probably not to 99% of sane people, but can lawmakers (or anyone for that matter) express what they want out of such a law in a concise enough manner to not be misconstrued in a major way?
On the other hand, it can be that people detected the change on their results metrics, and decided to increase their spending because of the change. I really don't know how to differentiate this scenario from a normal increase on internet advertising that should naturally happen at the earlier days of a fast growing web. I don't think even Google (that has all the numbers) can tell them apart either.