Here is the Google deal: There are producers and there are consumers and they make up the economy. That's just a fact. And, unless you are a hermit, you participate in one or both groups. Producers and consumers want to find each other. How? Well, there was the old way, where producers spent a fortune broadcasting their message all over the place, littering TV, print media, and your mailbox with crap you did not want to see. And fortunes were spent on that, more than small businesses could afford, and whole forests were destroyed. There is a large cost of entry so you could blanket the world with your message which got lost among all the other large companies doing the same thing.
Or, we could target the messages. Much more efficient. Small players can now afford to advertise. The change to consumers is that they still see as many ads, but they are now less random. Small producers can afford to get their message to just the people who might be interested. Small consumers get tons of free services in exchange to seeing ads that might be something they are interested in. Everybody wins, except the conventional companies who have a vested interest in maintaining their distribution and information hegemonies.
No company does more to protect your privacy than Google. Your information never leaves the datacenter and is never viewed by human eyes. You can see just what information they collect by visiting your account page. You can use Chrome Incognito mode to do things you don't want anyone knowing about. You can turn off tracking completely if you like. If you leave it on, you are helping promote a more efficient economy where small businesses can compete against larger companies with huge advertising budgets. You are free to turn it all off, but don't turn it off just because some hipster IT geek likes to shout wolf.