None of that matters if the text is broken English... "U" is not a word. Numbers should generally be written out in headlines. Text should either be title case, all uppercase, all lowercase, or sentence case, not a mixture of cases.
It's difficult to tell if tracking should be decreased without seeing the ENTIRE usage... same holds true for the font. And what does "off in this screenshot" mean? Define "off".
Yes, generally speaking, the heavier the weight, the tighter the tracking. But obviously, this headline is more about someone's idea of "clever design" than typography (thus the silly webspeak, which I also find nothing but annoying). So without seeing the ad, who knows?
(I hope that one of the items listed as what one needs to succeed is basic grammar.)
Another thing to think about is the context of the typography, meaning how close or far away the viewer is going to be. Often it is suggested to use more tracking the smaller the text used–so, you might use much less tracking on a billboard sign than on a business card. Of course, tracking is also dependent upon the typeface used and the overall aesthetic of the piece. Like the others said, we would need to see the type in the context of the entire ad to give a meaningful suggestion.
The other "rule" is; The more condensed the type, the tighter the tracking.
Condensed type with too much tracking begins to look like fenceposts in the desert, like yours is beginning to.
I too hate the silly spelling. It’s awfully hack. But it’s your choice.
All's fair in love and war and advertising is basically war.
There is no right and wrong and design in advertising has never actually been a criteria for good or bad advertising and certainly good design has never entered into the equation.
The fact that you asked the question more or less indicates that you have a feeling about this and what ever that feeling be is your answer.
As for the wording there is no way to tell without seeing the ad knowing the target , etc. For instance say it was an ad for a play and that was the name of the play, then depending on the content of the play the letter and word spacing might be appropriate.
On the other hand if the text of the headline refers to something very specific such as might refer to web speak it might also be appropriate. Then it might not be a matter of tracking as it is a headline and if might be more a matter of custom kerning which is more likely than tracking.
In the ned the issue is communications and more important is it worthwhile content which very little in this world of communications qualifies as.