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I'm confused, I never see any ads in Gmail (using the web interface or the mobile app), and I don't pay for it.

Is that really still a thing? If my email app was showing me ads I'd obviously switch and/or start paying for it.

Gmail seems to only show ads if you have categories on.

I haven't seen an ad on Gmail since at least 2010. I remember it because how snappy the email interface was back then.