Let me focus it from a slightly different side: my believe - from observing the world around me - is that physical privacy violation is perceived differently from a software one because of the side-effects: you gaze out of your window and see the same car with some guy in it parked there, you see the same car following you when you are going to the mall etc. There is some similar side-effect with online tracking, which is the typical "ad in my Instagram feed for something I searched for last week in Google", and there are people that are "scared" by this. But since it's just about buying things, well hey I might actually tap on that Instagram ad!
I see some success by telling people "what if was our government doing the same thing to us, even by extorting private companies? what if that same government, or the next one, just hates you for whatever reason?"
I take your point about the 'abstract' nature of online privacy. But another angle might be suggesting to those that are ambivalent on the issue that the pervasive (and for all intents and purposes, permanent) recordkeeping nature of 'software surveillance' should be much scarier than some guy sitting outside. I mean, at the very least, even with some guy sitting outside, you'd still have privacy inside.
But again, I hear you. Most people unfortunately have come to view the issue as being just about targeted advertising (which some go so far as to espose as a good thing).