Everywhere else is the problem, I don't like being treated like I'm at the store every minute of the day, online and offline. I'm not looking to buy anything when I browse the internet, when I commute, when I'm at home and the phone keeps ringing to sell whatever, when I'm picking the kids at school and people keep trying to engage in sale talk and push flyers. It's exhausting.
Amazon needs to spend its money on improving its search, ranking, and review systems to customers can find the products they want themselves, not on adtech. Amazon's search is trash and it's always been trash. It's 2017, why does sort-by-ratings still rank products with a one 5-star review over products with 1000 reviews and an overall rating of 4.9 stars. There are better algorithms out there [1]. It also needs to put serious effort into fixing its fake reviews problem and counterfeiting problem.
Amazon's core search and shopping experience hasn't improved much in at least 10 years, possibly more. That needs to change.
[1] https://www.evanmiller.org/how-not-to-sort-by-average-rating...
I echo some of your sentiment. If Amazon is truly as customer obsessive as they branded themselves, they would avoid putting cheap ads out there. Since their click rate is going to be so high, those ads will be very expensive indeed, which I would assume to be quality ads as well.
But to be honest I would be very much reluctant at seeing a lot of ads. They do this already with "Sponsored" products and most of the time it serves as distraction instead of convincing buyer into even at least clicking their ad.
Now, you go elsewhere on the web and you see ads for that particular jacket, but there's no incentive for you to click on the ad because you already know the price is too high.
But if the ad says: "hey, 10% off on this jacket in the next 30 minutes with coupon code xyz" then yeah you might click on the ad, buy the jacket and in the end, the customer, the retailer and the ad agency are all winning.
There are people who save ridiculous amounts with traditional coupons, but not many people are willing to put in the effort or make the sacrifices to to that, so they still work for the companies.
So just having paid advertising is just an extension of this. As Amazon acts less like a department store and more like the operator of a bazaar with thousands of merchants hawking their wares in the street, I guess it makes sense.
They just don't look like ads because they are indistinguishable from the rest of the amazon interface.