No. The most ad targeting that should ever exist is by geography, and that's it.
Advertising has value in letting people know about your product. If you're selling locally, you rent a billboard on some street crossing, or a banner at a mall, or you buy a sponsorship at a local event because you think your target demographic will be there. At a demographic level, not individuals.
On the Internet, geography translates to maybe using zipcode from an IP address, and demographics translates to choosing which websites ("publishers") to put ads on.
And that should be it, that's fair and should get you enough bang for your buck.
Putting cameras in people's homes, listening to their conversations, following them around in their cars, stalking their relationships, tracking their voting records, etc should not be an acceptable way of increasing the efficiency of the targeting.
Of course you would make more money with this kind of spying (as what happens today). But this kind of invasion has great societal costs to privacy, and subsequently to freedoms, and should never be justifiable.