I don't think the word 'targeted' has as narrow a definition as you are proposing (at least in the common vernacular). In writing laws, as in code, one has to be very specific and define things properly, but not in frank discussion.
Disclosure: I believe in the eventual success of the fediverse.
So no, targeted advertising is not any ad with a target in mind, that is just advertising. Targeted ads are distinguished from regular ads based on targeting a specific individual. An ad in the WSJ may be aimed at a broad category of people interested in business news, but if I know for a fact that 'Letmesleep69' happens to be a reader of that paper and I take out an ad that specifically refers to that user name, then it would be a targeted ad.
edit: formatting