Advertising, tracking, and privacy are three separate concerns. We conflate them due to the way current advertising networks work: they track you, storing + analyzing the data in centralized servers (which violates your privacy), to deliver ads.
You can deliver ads without tracking (for example, contextually based upon the page you are looking at, without any storage of that information or historical state.) And you can track users without violating their privacy (by not sending the data to a remote server and only analyzing it locally.) So in general, it's certainly possible to be able to preserve a user's privacy while also be monetizing your product through advertising.
Now of course, most people dislike ads, which is a separate issue. But advertising is not inherently a violation of privacy, at least if you see privacy through the lens of surveillance by a third party. (You could stretch the definition of privacy to a point where seeing ads I suppose could be privacy violating, but I don't feel my privacy is being violated when I see a billboard on the highway, for example.)
