Totally agree with this. Even after collecting so much data, Google and Facebook fail at showing me ads which are useful for me.
However, even with their inferior targeting FB and Google are making billions. So it might be the case that there is no further incentive to improve in this area and they are focusing on making their core product better to get even more users.
the claimed relevance of the adds is the selling point of google and friends; maybe they do not quite anticipate what a 'power user' might want, however maybe they are more relevant to some people who are not connected day in and day out - sometimes you might do better if you have less data to extrapolate from .
However, even with their inferior targeting FB and Google are making billions. So it might be the case that there is no further incentive to improve in this area and they are focusing on making their core product better to get even more users.