Cookies play a pivotal role in online advertising by collecting and storing user data to deliver more personalized and targeted advertisements. These small pieces of data, stored in a user's web browser, track their online behavior, preferences, and interactions with websites. In the context of online advertising, cookies serve several key purposes:

   Ad Targeting: Cookies enable advertisers to analyze users' browsing habits and interests. This information is utilized to deliver targeted advertisements, ensuring that users see content relevant to their preferences and behaviors.

   Frequency Capping: Cookies help manage the frequency at which users see specific ads. Advertisers can set limits on how often a particular ad is displayed to prevent overexposure and enhance the user experience.

   Ad Attribution: Cookies assist in tracking the effectiveness of online advertising campaigns. Advertisers can analyze cookie data to determine which ads lead to specific actions, such as clicks or conversions, providing valuable insights into the performance of their campaigns.

   Retargeting: Cookies support retargeting strategies, where users who have previously visited a website or interacted with specific content are shown relevant ads as they browse other sites. This helps re-engage users and encourages them to return to the advertiser's site.

While cookies contribute to more personalized and effective online advertising, concerns about user privacy and data protection have led to increased scrutiny. Regulations such as the General Data Protection Regulation (GDPR) and efforts to enhance user privacy settings aim to provide individuals with more control over how their data is collected and used in the online advertising ecosystem.

Read also: Role of cookies in website analytics.