After thinking about it for a long time I came to the conclusion that I'm OK with ads. They are not so annoying to me and as long as they are not popping out or really interfering forcefully I fine with them being there. As far as I can see ads are the de-facto fuel for a broad part of the content-creation monetization system which I consume heavily (mainly YouTube).
so,
I want to configure my set-up so it won't block all the ads (especially not on YouTube).
But,
I do think that the amount tracking this days sites have is highly exaggerated and unnecessary (I worked on data-science so I can say that with a bit of confidence). Therefor I do want to block trackers and third-party cookies if possible.
Currently using Firefox both on my Macbook and my Android phone (with Duckduckgo as my search engine).
Is the above possible? Which extensions might be relevant?
In Firefox, install the uBlock Origin extension. Go into ublock settings, disable ad blocking filterlists, enable tracking filterlists. Personally, I'm blocking ads too as they're sometimes abused as malware vectors.
Or if you only want ads that aren't interfering, there's Adblock Plus with its acceptable ads programme. Can't vouch for whether that's a good or bad thing.
Google is paying copius sums of money to in AdBlock Plus (asuming this is the extension you are speaking about), makes sense to avoid it completely and run uBlock Origin.