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I think the very old Google was better in this: They analysed current intent by looking at current search and contents of the current page one looks at. There an ad may solve a specific current need. As soon as past profile overrides this the relevance goes down: It's great that two weeks ago I spent a lot of time on travel sites, but now my summer vacation is booked and all related ads are irrelevant.
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The problem with the idealism of targeted advertising is that it assumes that there is always an ad that fits your desires. In reality, some people have very niche interests and preferences, and not every business advertises through the same channels or with the same budget. Ads will pretty much always cater to the lowest common denominator even if you account for the individual.
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Search ads do seem like the one ad type that kind of flips that though. Where it's not based on some general set of interests, but literally the thing you're searching for at that moment.
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They seem like that, but in practice, human marketers are your adversaries, and they're buying ads on targeted search terms. I can search "better pancakes than Waffle House" and a marketer at Waffle House will have bought the ads so I just see ads for Waffle House's pancakes. This is not actually useful to me at all.
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