Third-party data tracking refers to the collection of user data by entities that are not directly involved in the interaction between the user and the website or app. This is typically done by third-party cookies placed on a website by other companies, often for advertising purposes.
When you visit a website, the website may allow other companies (the “third parties”) to set a cookie on your browser. These third-party cookies can then track your behavior across multiple websites, building up a profile of your interests based on the sites you visit and the content you view. This profile can be used for targeted advertising, so that you see ads that are likely to be of interest to you.
It’s important to note that third-party data tracking has become a contentious issue, with concerns raised about privacy and consent. As a result, some web browsers have started to block third-party cookies by default, and regulations like the European General Data Protection Regulation (GDPR) have placed restrictions on how this kind of tracking can be carried out.