Google's Data Collection Practices and Advertising

In our hyper-connected world, data isn’t just collected; it’s decoded, tracked, and turned into powerful tools that help marketers analyze and shape YOUR digital life and experience. For example, every search you make, ad you click, and every location you visit adds a new brushstroke to your online identity. Tech giants like Google don’t just collect certain information; they craft experiences around it and use the data for their algorithms to better tailor to you. In addition, many companies leverage this data for their advertising efforts, employing techniques like behavioral targeting to deliver personalized content based on user behavior and preferences.

However, these data collection practices are subject to stringent regulations designed to protect user privacy. Laws such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States mandate that companies obtain explicit consent from users before collecting personal data and provide transparency regarding how this data is used. Companies must adhere to these regulations, ensuring that their data collection and advertising practices comply with legal standards and respect user privacy.

Understanding how this all works is essential—not just for everyday users of Google, but also for businesses and advertisers who use its tools. As we all navigate the line between personalization and privacy, it’s important to realize there’s a clear distinction between the data Google collects for itself and the data businesses collect through Google’s services.

So, what data does Google collect and store?

That’s not an easy question to answer, since we cannot know exactly what happens behind the curtain. However, the best place to start looking is directly to the source: The Google Privacy Policy: https://policies.google.com/privacy

Summary of Google’s Privacy Policy

Google’s Privacy Policy outlines how the company collects, uses, and protects user data across its services, ensuring compliance with data protection laws like GDPR (EU) and CCPA (California).

1. Data Collection

Google collects information from users through:

User-provided data: Names, email addresses, payment details, and content users create (emails, photos, videos).
Device and browser data: IP addresses, operating systems, device identifiers, and app usage.
User activity: Search queries, browsing history, video views, ad interactions, and purchases.
Location data: GPS, IP addresses, and Wi-Fi signals.
Third-party sources: Publicly available information and data from partners (advertisers, security firms).

2. Purpose of Data Collection

Google uses collected data to:

Provide and improve services (e.g., personalized search results, AI features).
Offer tailored ads and recommendations based on user activity.
Measure ad performance and optimize marketing strategies.
Enhance security and prevent fraud, using AI-driven threat detection.
Develop new products and refine existing ones based on user behavior.
Comply with legal obligations, including responding to law enforcement requests.

3. User Control and Privacy Settings

Users can:

Manage their data via Google’s Privacy Checkup and My Activity dashboard.
Adjust ad preferences in My Ad Center to control personalized advertising.
Delete or export their data using Google Takeout.
Limit data collection through browser settings (e.g., Incognito Mode) and device permissions.

4. Data Sharing and Security

Google does not sell personal information but shares data in these cases:

With user consent (e.g., sharing data with third-party apps).
With domain administrators for enterprise accounts.
With partners for analytics and ad targeting, using anonymized or aggregated data.
For legal compliance to meet government or regulatory requests.

5. Compliance and Legal Framework

Google ensures data protection compliance by:

Adhering to GDPR, CCPA, and other regional laws.
Providing transparency on data handling via privacy settings and regular policy updates.
Allowing users to withdraw consent and request data deletion.

6. Updates and Changes

Google may update its Privacy Policy due to new laws, service improvements, or security needs. Users receive notifications for major changes.

Key Takeaway

Google uses data to improve user experience, personalize its services, and support its ad-based business model while ensuring privacy control options and legal compliance.

Google’s commitment to responsible advertising and user privacy

No Sale of Personal Information: Google asserts that it does not sell users’ personal information to third parties for advertising purposes.
Transparency in Data Collection: The company emphasizes clarity about what data is collected and the reasons for its collection, ensuring users understand how their information is utilized.
User Control Over Personal Data: Google provides tools like My Ad Center and My Activity to allow users to customize their ad experiences and manage their activity data.
Limited Use of Sensitive Information: The platform does not use sensitive information, such as health, race, religion, or sexual orientation, to tailor ads. Additionally, content stored in apps like Drive, Gmail, and Photos is not used for advertising purposes.
Built-in Security Measures: Google highlights its advanced security infrastructure designed to protect user data and prevent fraudulent activities.

Google’s Policy in Story Representation

Nice and fun, but what does this all mean? Here’s a visual representation of how Google collects and processes data from a fictional user, Alex, along with a simplified explanation of what’s happening behind the scenes.

Meet Alex – A Regular Google User
Alex uses Google Search, YouTube, Google Maps, Gmail, and an Android phone daily. Here’s what Google collects and how it’s used.

🔍 1. Searching on Google
Activity: Alex searches for “best hiking trails near me.”
Data Collected:
– Search terms
– Approximate location (IP address, GPS if enabled)
– Browser and device details
How Google Uses It:
– Provides personalized search results
– Shows hiking-related ads
– Suggests nearby trails on Google Maps

📍 2. Using Google Maps
Activity: Alex opens Google Maps to find a hiking trail.
Data Collected:
– GPS location
– Search history
– Past visited locations (if Location History is enabled)
How Google Uses It:
– Suggests the fastest route
– Provides traffic updates
– Recommends nearby attractions or restaurants

🎥 3. Watching YouTube
Activity: Alex watches hiking gear reviews on YouTube.
Data Collected:
– Videos watched
– Search history
– Engagement (likes, comments, subscriptions)
How Google Uses It:
– Suggests similar videos
– Shows hiking-related ads
– Creates a personalized “Watch Later” list

📧 4. Sending Emails on Gmail
Activity: Alex emails a friend about a hiking trip.
Data Collected:
– Email metadata (who, when, subject lines)
– Content analysis for security and spam detection
How Google Uses It:
– Protects against phishing scams
– Suggests calendar events based on email content
– Offers smart reply suggestions

📱 5. Using an Android Phone
Activity: Alex downloads a weather app and enables Google Assistant.
Data Collected:
– App usage and permissions granted
– Voice interactions with Google Assistant
– Location, device type, and battery level
How Google Uses It:
– Sends weather notifications
– Provides voice search suggestions
– Optimizes battery life based on usage patterns

📢 6. Seeing Ads on Google and Other Websites
Activity: Alex later sees ads for hiking gear while browsing the web.
Data Collected:
– Past search history
– YouTube watch history
– Location data
– Interests inferred from browsing behavior
How Google Uses It:
– Displays personalized ads
– Helps businesses reach relevant customers
– Allows users to adjust ad preferences in My Ad Center

Is Google Spying?

No, but Google tracks and stores data to improve user experience and target ads.
The good news: Alex and you can manage and limit what data is stored through Google’s privacy settings if you would like this.

How To Manage Your Data with Google

Use Incognito Mode to prevent search history tracking
Disable Location History in Google settings
Adjust Ad Preferences in My Ad Center
Delete Search & Activity Data via Google My Activity
Export or Remove Data using Google Takeout

What Data Do the Advertisers (e.g., a Bank or a shop around the corner) Collect through Google?

When a company or any other advertiser runs campaigns on Google Ads, YouTube, or Google Display Network, they don’t receive direct access to personal user data or anything that we discussed above. Instead, the advertisers see aggregated and anonymized insights from Google’s data. Here’s what advertisers can see, collect, and cannot collect:

What Advertisers Can See via Google Services

Advertisers and businesses rely on Google’s ad tracking, analytics, and reporting tools to understand campaign performance. They can access:

1. User Interaction Data

What’s Collected/Seen?

Ad Clicks: When a user clicks an ad, Google tracks that action.
Impressions: How many times the ad was shown.
Engagements: Likes, shares, or comments on YouTube or Display ads.
Conversions/Events: Actions like form submissions, purchases, or app downloads.
Visit and Interaction Data: Google/Advertisers track, if implemented, how users interact with the company’s website, including clicks, page views, and subsequent actions. Also think about behavioral Data: Pages visited, Time spent, Actions taken (e.g., adding items to a cart).
Search Queries: The terms and phrases users input into Google’s search engine.

Why It’s Used?

Measure ad effectiveness and ROI.
Optimize ad placements and bids.
Optimize experiences – Adapt website design, content, or user flows based on real behavior.

2. Audience Segmentation Data

What’s Collected/Seen?

Demographics: Google provides advertisers with age ranges, gender, household income levels, and parental status.
Interests: Based on past browsing behavior, advertisers can target users interested in finance, home loans, investment banking, etc.
Location: Advertisers can see broad location data (country, city, ZIP code) but not precise addresses.
Life events: It’s possible to target users based on certain life events customers go through.

Why It’s Used?

Helps advertisers show ads to the most relevant audience.
Enables custom audience targeting (e.g., people interested in mortgage loans).

3. Remarketing Data (Website Visitors & App Users)

What’s Collected/Seen?

Users who visited the company/organization website but didn’t convert.
App users who engaged but didn’t complete key actions.

Why It’s Used?

Advertisers can retarget past visitors with follow-up ads on different platforms like YouTube, Search, or Display. Example: If an user visits a company but doesn’t buy anything, the company can show an ad reminding them about the product.

4. Device & Technology Data

What’s Collected/Seen?

Device Type: Mobile, desktop, tablet.
Operating System & Browser: Windows, iOS, Android, Chrome, Safari, etc.
Network Provider (for mobile ads).
IP Addresses: Used to infer approximate location and deliver region-specific content.
Device Identifiers: Such as device type, operating system, and browser type.
Cookies: Small text files stored on users’ devices to track preferences and activity across websites.

Why It’s Used?

Optimize ad formats for the best-performing devices. Example: If mobile users engage more, the company can increase mobile ad bids.

5. First-Party data, Third-Party Data, Customer Match & Lookalike Audiences

What’s Collected?

Most companies collect first-party data (data they control and own), for example, emails or phone numbers from existing customers. Companies/advertisers can decide to match this data with platforms like Google to increase reach, accuracy, and new audiences, and match this data with Google’s platform.
If customer match or lookalike audiences are used, Google will collect personal identifier information like email, phone, and mailing addresses and match it to their data.

Why It’s Used?

Expand audience reach to similar potential customers. Example: A company could target people similar to existing customers.
This data is used to match with Google user profiles for ad targeting, but isn’t shared with third parties without consent.

To add on

Cookies: Google sets cookies to track:

User activity across different sites
Session IDs
Login information
Preferences

The data is aggregated for advertisers, they can only see

Performance Metrics: Google collects data on ad performance, such as:

Reach
Engagement
Conversions

Google security logs. If Google services are involved in ad delivery, it may log:

Failed login attempts
Access to secure areas of the website

What Advertisers CANNOT See/Collect from Google

Personal Identifiable Information (PII)

No access to names, emails, phone numbers, or precise locations unless provided directly by users and advertisers.

Individual Search History

Advertisers cannot see what users searched for outside their ad campaigns.

Individual Device or IP Address Tracking

Google provides aggregated location insights but hides precise IP addresses.

Sensitive Categories (e.g., Race, Religion, Health, Sexual Orientation)

Ads cannot be personalized based on sensitive personal data (per Google Ads policies).

How Advertisers Use Google Data for Ad Targeting

Data	How It’s Used for Ads
User Interests	Show relevant ads (e.g., mortgage ads to homebuyers).
Past Website Visits	Retarget visitors who didn’t convert.
Demographics	Target by age, gender, or household income.
Location	Show ads based on city or region.
Device Type	Optimize ads for mobile or desktop users.
Behavioral Data	Target users based on browsing patterns.

How Advertisers Use Data in Visual Representation:

Let’s analyze in the most extreme scenario where a Company (for example, a Bank called Invest Secure) could use Google extensively, here’s an overview of what data Google and a company might collect:

Meet Invest Secure – A Modern Financial Institution Using Google & Its Own Data
Invest Secure is a financial services company offering online investment tools, mortgage products, and savings accounts. They run ad campaigns through Google Ads, track user behavior with Google Analytics, and use their CRM and newsletter tools to stay connected with customers.

Let’s walk through how Invest Secure might collect and use data in conjunction with Google, without ever seeing your personal Google data.

1. Alex Clicks on a Google Ad

Activity: Alex searches for “best savings accounts” and clicks on Invest Secure’s Google ad.

Data Google Collects (and Shares in Aggregated Form):

Search query that triggered the ad
Clicked ad and timestamp
Device type and location (city-level)

What Invest Secure Sees:

Which keyword led to the ad click
Number of impressions, clicks, CTR
Conversion data (if the user signs up)
Device category and location trend

Note: They don’t know the user’s name or exact identity unless voluntarily submitted to the website.

2. Alex Browses the Website

Activity: Alex lands on Invest Secure’s site and checks out the “Premium Savings Account” page.

Data Collected via Google Analytics & Tag Manager:

Page views, time on page, bounce rate, etc.
UTM parameters (source, medium, campaign)
Events (e.g., clicks on ‘Apply Now’ button)

First-Party Data Collected by Invest Secure:

Nothing personal yet—just behavioral data unless a form is filled.

Note: Google provides anonymized session insights—Invest Secure sees aggregated trends.

3. Audience Segmentation & Retargeting

Activity: Alex leaves without signing up. Later, he sees a remarketing ad for Invest Secure while watching YouTube.

What Google Does:

Tags the user (via cookie or GA4 audience) as a past website visitor
Matches this behavior to a relevant audience segment
Shows the ad via YouTube or Display Network

What Invest Secure Controls:

Defines the audience (e.g., “Visitors to Savings Account page”)
Writes the ad copy and sets targeting preferences
Chooses devices, times, and locations for showing the ad

Note: Invest Secure never knows who exactly saw the ad—they only see audience group metrics.

4. Alex Submits a Contact Form

Activity: Interested, Alex fills out a form to speak to a financial advisor.

First-Party Data Collected by Invest Secure:

Name, email, phone number, inquiry type
Timestamp and session data (via Google Tag Manager)

How They Use It:

Store data in CRM system
Trigger a confirmation email
Assign a sales rep to follow up

Note: This is the only moment personal data is known—and only because the user gave it voluntarily.

5. Using Data for Performance Analysis

Activity: Marketing team at Invest Secure checks campaign dashboards.

Google Shares:

Which ads perform best
Conversion paths (e.g., ad → website → form)
ROI and cost per conversion

What Invest Secure Learns:

Which keywords and campaigns bring quality leads
Which demographics engage most
Where to increase/decrease ad spend

Note: They still don’t know personal identities unless submitted via forms.

Communicating data practices to customers

1. Transparency

Inform customers that their data may be used for ad personalization if they interact with the company’s ads or website.

2. Consent

If required by privacy laws (e.g., GDPR, CCPA), ensure users provide explicit consent for cookies or data processing.

3. Control

Customers can manage their data through their Google Account settings, including opting out of ad personalization.

4. Data Use

Explain that data is used to:

Show more relevant ads

Improve marketing effectiveness

Measure ad performance

Note: Google does not sell this data to third parties.

📌 Reference: Google Data Collection Overview

Answering Your Legal Team’s Questions

If you’re running advertising campaigns, it’s only a matter of time before your legal team asks: “What exactly are we collecting?”
And the honest answer is: It depends.

Not the most satisfying reply, but it’s the truth. What you collect depends entirely on how your setup is configured, which tools you’re using, and how consent is managed.

Variables like cookie banners, tools, settings, tagging strategies, the use of first-party data, and your campaign objectives all influence what data is collected, processed, and stored. That’s why it’s crucial to have clarity on your tech stack, understand what’s being tracked, and ensure everything aligns with data privacy laws like GDPR or CCPA.

💡 Need help figuring this out?
At To The Maks, we help businesses audit their data collection, set up compliant tracking, and bridge the gap between marketing performance and legal peace of mind. Let’s talk about how we can help your team stay both data-driven and privacy-first.

Use cases for the data

A. Ad Personalization & Targeting

Audience Segmentation: Use demographic, interest, and behavioral data to target ads to the most relevant users.

Remarketing: Show ads to users who visited the website but didn’t convert, encouraging them to complete the action.

B. Performance Measurement & Optimization

Conversion Tracking: Identify which ads lead to valuable customer actions (purchases, sign-ups, etc.).

Ad Testing (A/B Testing): Experiment with different ad creatives, formats, or targeting to optimize campaigns.

C. Insight Generation

Market Research: Analyze user behavior to refine marketing strategies and product development.

Trend Analysis: Track consumer trends over time and adjust marketing tactics accordingly.

D. Customer Match & Lookalike Audiences

Customer Match: Use first-party data to target existing customers across Google’s platforms.

Lookalike Audiences: Identify and reach new customers who share similarities with existing ones.

2. Other Business Purposes

A. Security & Fraud Prevention

Detect and prevent click fraud or fraudulent conversions to ensure ad spend is used effectively.

B. Compliance with Legal Obligations

Process data to comply with regulatory requirements (e.g., providing data to authorities if legally required).

How Users Can Control Their Data

Google provides privacy settings for users to manage their ad preferences:
✔️ My Ad Center – Customize or turn off personalized ads.
✔️ Activity Controls – Delete search and browsing history.
✔️ Incognito Mode – Prevents search activity tracking.
✔️ Google Takeout – Export or delete personal data.

Key Takeaway

Understanding how data is collected, processed, and used by both Google and advertisers like your company is no longer optional—it’s essential. Google gathers vast behavioral and technical data from its ecosystem to personalize experiences and power its advertising engine, but it does so within strict privacy guidelines. Advertisers, on the other hand, only access aggregated insights and rely on their own first-party data for deeper targeting and optimization.

By clearly distinguishing between Google-collected data and advertiser-collected data, businesses can operate more transparently, align with legal and ethical standards, and earn customer trust. Companies must proactively configure tracking setups, gain proper consent, and communicate their data usage practices clearly, especially in a world where user expectations and legal requirements are evolving fast.

Conclusion: From Confusion to Clarity

At To The Maks, we believe knowledge is power, and clarity is the bridge between ethical marketing and customer trust. While data collection may feel invisible, scary or complex, it’s built on defined systems and permissions. Google manages its own user data for its platform’s ecosystem, while businesses collect data only through deliberate actions, like website visits, consented form submissions, or ad interactions.

By understanding the boundaries and potential of each data source, your organization can make smarter decisions, comply with global privacy laws, and still run highly effective marketing campaigns. Whether you’re a compliance officer, marketing lead, or digital strategist, knowing who collects what—and why—should be a core part of your playbook.

Ready to dive deeper into ethical, data-driven marketing?
Let To The Maks help you build campaigns that are powerful, compliant, and trusted.

Resources

Google Ads Data Protection Terms: Service Information
provides detailed information about Google’s data protection terms concerning its advertising services. It outlines the specific services categorized under either ‘Controller Terms’ or ‘Data Processing Terms,’ clarifying Google’s role in data processing for each service. Additionally, the page specifies the types of personal data associated with these services, ensuring transparency regarding data handling practices. Since they should be compliant as well and disclose their data.

https://business.safety.google/intl/en_uk/adsservices/

Google Ads FAQ GDPR

The webpage serves as a comprehensive FAQ resource addressing how the General Data Protection Regulation (GDPR) relates to Google Ads. It provides businesses with insights into compliance requirements, data handling practices, and the implications of GDPR on advertising strategies.

https://ads.google.com/intl/en_uk/home/resources/gdpr/

Google’s Commitment to Ads and Data Privacy

Google’s Ads and Data Privacy page outlines the company’s approach to responsible advertising, emphasizing transparency, user control, and data protection. It details how Google never sells personal information, allows users to manage their ad preferences through My Ad Center, and limits the use of sensitive data in ad personalization. The page also highlights Google’s efforts to enhance privacy through initiatives like the Privacy Sandbox and provides tools for users to control their ad experiences

https://safety.google/privacy/ads-and-data/

Google’s Advertising Technologies and User Data Practices

Google’s Advertising – Privacy & Terms page offers an in-depth look at how the company utilizes technologies like cookies and device identifiers to deliver relevant ads while upholding user privacy. It explains how cookies are used to enhance ad effectiveness, prevent fraud, and limit repetitive ads, and how users can manage their ad preferences through tools like My Ad Center. The page also highlights Google’s Privacy Sandbox initiative, which aims to develop privacy-preserving alternatives for ad targeting and measurement in a world without third-party cookies

https://policies.google.com/technologies/ads

Manual of how Google Utilizes Conversion and Event Data in Google Ads

Google’s How Google uses conversion and other event data page explains how the company processes conversion and event data to enhance advertising performance while maintaining user privacy. It details how this data is used for campaign performance reporting, automated bidding strategies like Target CPA, and aggregated analysis to benefit advertisers collectively. The page also emphasizes Google’s commitment to data security, stating that event data is only collected on sites and apps with configured tracking, and that advertisers must obtain user consent where required by law or Google’s policies.

https://support.google.com/google-ads/answer/93148