No one wants to be advertised to, but powerful lobbies argue that ending ads will lower consumption and thus harm the economy; and no politician wants to lower GDP.
No one wants to be spied on, but powerful lobbies argue tracking people allow better security; and no politician wants to be soft on crime and terrorism.
I doubt that. People tend to spend their money regardless. Advertising just determines what they spend it on.
Advertising is only used heavily when all products are similar, otherwise the best would naturally rise to the top.
For example, washing powder/liquid is advertised heavily on TV, yet do you really believe one brand of powder/liquid gets your clothes cleaner than any other?
You're assuming people would still have the same amount of money, but for most money is not a given, and people strive to earn money precisely because they want to buy the things they were advertised.
Without the social pressure to acquire things one doesn't need, it's very possible people might simply work less and use that time for other things.