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You are assuming a benevolent advertiser that uses knowledge about you in a way that is aligned with your long-term interests.

If we assume that a white noise advertising is less effective than a targeted advertising then it is in the interest of most people to prefer the former because a benevolent advertiser is a rare bird in real life.

He understood his argument just fine.

What he is saying is that advertisements manipulate you (likely without your knowledge) and that this is a net cost the the consumer (not to mention even dirtier ads for scams and malware, that's a different subject.) The other kinds of advertisement, the ones that actually inform you of something that is useful to you, do exist. But how much of a benefit are they? I don't think I've ever clicked on an internet ad or bought something because of one.