if you dont block some applications from internet, they definitely are listening somehow. not sure if they can bypass the microphone permission, but if any has constant access then that is that. what i meant that the phone itself doesnt seem to have thing where it listens on you. average user who is not technically adept at all will have their phone riddled with spyware so no wonder they are seeing targeted ads.

Fakebook is just facilitating the ads, the advertising companies are the ones with the data. Though what facebook does with it is likely that they try manipulate you through their algorithm, suggesting stuff they want you to see based on the data collected. Be it for increased addiction, manipulation of opinions or something else.