I think this will evolve advertising in interesting ways.
"Ads 1.0" had a viewpoint of trying to scrape every last little bit of data about a user's interests: from their email, messages, calendar, search history, friendships, and discussions. There was a mental model that you can't really know what's going to resonate with a person until you have their life under a microscope. This the "surveillance capitalism" take.
There's a view, perhaps not universally shared, that humans may not actually be as complicated as all that. That if you have a person play a short game, engage in a chat session a few minutes long, swipe on people they find interesting, or even just pay careful attention to how much of a video someone watches -- that discerning their personality and interests is challenging but totally viable.
Let's remember: the Cambridge Analytica debacle didn't stem from a full dump of someone's private Facebook history - it was mainly personality tests that were very quick to complete. It turned out that such a quick & casual test is mostly sufficient signal to be actionable re: how they were likely to vote and how to influence that vote.
In this mode, we'll see the rise of superapps that have rich ways of engaging and rich telemetry to discern your interests without having to "snoop" on you. They'll just engage you directly.
In this way, privacy is preserved nicely but ads can still be well-targeted.