Instead of increasing regulation, the burden of which will fall on small businesses, the EU should encourage online micro-payments.
If individual users could pay a few cents to access content across thousands of websites, with the total spend level aggregated, this could replace the need for advertising.
That just leads to a scenario where people pay for stuff and are subjected to ads. There is no situation where business owners wouldn't benefit from putting ads into their stuff. Choosing not to do it means leaving money on the table.
Some turn to ads because they can't afford to host/build the content otherwise, even though they don't like having ads.
I think we do desperately need viable widespread micropayments system(s). We need an alternative funding mechanism. Plastering everything with ads is no good solution, whether they invade privacy or not.
If individual users could pay a few cents to access content across thousands of websites, with the total spend level aggregated, this could replace the need for advertising.