Do you get payed by click or do advertizers rent the space like in newspapers or a combination?

I use adblock because i'm growing pretty sick of the growing amount of ads on sites and i hate it when i get greeted by my fucking first name when i enter a site i never seen before or some ad that reades "MEET NEW FRIENDS FROM AMSTELVEEN!!!!111!" where just happen to life. talk about privaty infringement. i dont even know how a website obtains that info. does it hack my adressbook or something?

anyway, if adblock harms this site i'm willing to allow the ads on this site