Now, I am not saying I like the surveillance economy, and I don't, by any means, enjoy ads. I also think we are risking a lot by the erosion of privacy as a value in our societies in the name of ad targeting. But I thought I'd point out there are social ills associated with pay services as well.
Freemium is another option, but it quickly becomes about finding a balance between providing a good enough free service that people want to use and thus promote it, and yet crappy enough that enough will upgrade to the pay version.
Note: My paycheck or the future of my current workplace does not depend on ads ;)