And that's a great trick - calling it "privacy" without reducing your own data collection/telemetry/spying, only your competitors. If I want privacy, Apple is included in the companies I want to stay private from!
So geo-targeting, and targeting via fine-grained (5k people in the same segment) advertising profiles built from data such as your age, name, address, gender, what other apps you've installed, what content you've consumed in Apple products, etc.