(The latter still account for the ads I see most of the time, unfortunately.)
Some examples of what I'm fine with: if I visit a hardware store's online website and am then retargeted by their ads, or I visit a hardware magazine's website and am then targeted by hardware ads.
The site showing an ad knows the context of what I'm looking at, whether that's a specific news article or the weather. That's enough info for a reasonably targeted ad without needing to match back to my browsing history, who I bank with, my likely religious views or sexual orientation, etc