1) How ad networks identify people searching for products
A. Direct signals (what you actively do)

- Search queries & site visits: If you search for “running shoes” on a search engine or visit product pages on retailers, those queries and pageviews are recorded by the search engine, publisher, or advertiser.
- Form fills, logins, and emails: If you give an email/phone to a site (newsletter, account, order), that’s strong deterministic data.
B. Tracking technologies
- Cookies & tracking pixels: Small files or 1×1 images on web pages that tell ad networks which pages you visit. Common on e-commerce and publisher sites.
- Mobile SDKs & app IDs: Apps include software-development-kits that send events (searches, product views) linked to mobile advertising identifiers (IDFA on iOS, GAID on Android).
- Browser / device fingerprinting: Collects device/browser attributes (screen, fonts, time zone) to create a unique fingerprint when cookies aren’t available.
- URL parameters & referer data: Product identifiers or search terms sometimes appear in URLs and are captured by analytics/ad scripts.
C. Cross-site / cross-app linking
- Cookie-syncing & ID graphs: Ad partners exchange identifiers (or sync hashed emails) to stitch a single identifier across sites/apps so the same user can be recognized elsewhere.
- Deterministic matching: Exact matches (e.g., hashed email) across datasets give high confidence.
- Probabilistic matching: Statistical signals (behavior patterns, IP + device) used to guess identity when exact match is absent.
2) How they turn those signals into sellable products
A. Audience segments
- Raw signals get transformed into labeled segments like “in-market: running shoes” or “interest: home mortgages.” Segments are what advertisers buy, not a spreadsheet of names (usually).
B. Data enrichment & profiling
- Data brokers combine first-party signals with other sources (purchase history, offline lists, demographics) to create richer profiles.
C. Distribution & sale channels
- Real-Time Bidding (RTB) / Ad exchanges: When a web page loads, an ad auction sends a bid request that can include user signals and segment IDs. Advertisers bid to show an ad to that user.
- Demand-Side Platforms (DSPs): Advertisers buy audience segments through DSPs using segment IDs or data-provider integrations.
- Marketplaces & data-providers: Companies sell predefined audience lists (e.g., “recent auto-intenders”) via marketplaces or APIs (historically companies like LiveRamp, Oracle BlueKai, etc.).
- Onboarding & lookalikes: Advertisers upload a customer list, a data onboarding provider hashes and matches it to online IDs to target existing customers or build lookalike audiences.
D. Delivery formats
- Segment IDs / tags: Buyers get an ID representing an audience (no raw PII) to target.
- Whitelabel lists / offline files: For direct marketing, data brokers may also sell lists (email, phone) — depending on legal rules and contracts.
3) Privacy, legal limits, and technical protections
- Hashing & pseudonymization: Email/phone often hashed before matching. This reduces direct PII sharing but can still be re-identified in some cases.
- Regulatory constraints: GDPR, CCPA and similar laws restrict processing/sale of personal data, require disclosures, and give consumers rights (access, deletion, opt-out).
- Platform rules: Major platforms (Apple, Google) limit access to persistent identifiers and restrict cross-app tracking (e.g., App Tracking Transparency for IDFA).
- Ad industry opt-outs: Industry initiatives (e.g., Global Privacy Control, IAB Transparency & Consent Framework) and ad choices pages exist to manage consent.
4) Typical lifecycle (simple example)

- You search “best hybrid bikes” and click an article.
- That publisher’s tracking pixel records the pageview and tags you as “in-market: hybrid bikes.”
- The publisher or a partner syncs that segment to an ad exchange.
- An advertiser’s DSP sees a bid request including your segment ID and bids to show you a bike ad.
- If they win, you see the ad; the advertiser pays the exchange and/or the data provider a fee for access to that audience.
5) How ad networks actually “sell” — payment & models
- CPM/CPM via RTB: Advertisers pay per thousand impressions when targeting an audience.
- Subscription / licensing: Some data providers charge recurring fees for access to a segment.
- Per-match or per-lead: For direct-response offers, brokers may charge per matched contact or per lead delivered.
- Revenue share with publishers: Publishers get paid for enabling access to their audience (via ad revenue share).
6) What you can do to reduce being targeted
- Use browser privacy modes, block third-party cookies, and use privacy extensions (uBlock Origin, Privacy Badger).
- Opt out of ad personalization: Google Ad Settings, Apple/Android ad ID reset & limit ad tracking.
- Use tracker-blocking browsers (Brave, Firefox with strict tracking protection) or a VPN.
- Exercise privacy rights under local laws (CCPA/GDPR) to request deletion or opt-out.
7) Ethical issues & risks
- Re-identification risks: Even hashed data can sometimes be linked back to people.
- Bias & fairness: Segmentation can reinforce harmful profiling (e.g., excluding groups from housing or employment ads has legal implications).
Transparency: Many users don’t know how widely their behavioral signals are shared.