What role do cookies play in digital advertising?

Cookies play a crucial role in digital advertising by tracking user behavior and preferences for personalized advertising. When a user visits a website, cookies are placed on their device to collect data about their browsing activities. This information helps advertisers understand what interests users, allowing them to deliver tailored ads that resonate with individual preferences and behaviors.

Personalization is essential in digital advertising as it increases the relevance of ads, leading to higher engagement and conversion rates. By knowing users' past interactions, including pages visited and content consumed, advertisers can create more effective marketing strategies that cater to specific demographics or interests.

The other options provide alternative functions for cookies, but they do not encapsulate the primary use of cookies in the context of digital advertising. For example, while cookies can help website performance in certain scenarios, their primary purpose in advertising is related to user tracking and personalization. Similarly, cookies are not directly involved in securing online transactions or limiting ad frequency.