The fact that these companies store your data means that during an attack that data may be compromised and misused by the attackers. Adapting the ads is simply a way for Google to sugar-coat the reality and to optimize sales and increase income from effective advertising. The real issue is what can be derived from that data by a malicious third party, and what they might do with the data and findings.
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I prefer to be advertised what I might want to buy instead of something I would never buy. And the use of data by the third parties is fairly limited in the damage they may cause.