Isn't Gmail the core pillar of Google's ad network? Whoever is logged into Gmail tells Google who is using an IP address. Facebook is the other ad network because they can also link requests to ids.
Facebook can monetize Instagram because they can sell targeted ads. Likewise, Google can monetize Youtube. If ads can be sold without those ids, Instagram and Youtube could have grown on their won.
Is this an emperor's clothing situation and nobody talks about this or do I have a complete misunderstanding of ad technology?