Cookies tailor your internet session to suit you and your interests. Back in 2001-2002 I read an in-depth article on Internet privacy, from a well-known respected newspaper, and that article contained a definition of cookies.

Paraphrasing, the definition went like this: "Cookies are programs that websites put on your hard disk. They sit on your computer gathering information about you and everything you do on the Internet, and whenever the website wants to it can download all of the information the cookie has collected. [ which is wrong! ] Definitions like that are fairly common in the press.

The problem is, none of that information is correct!

Cookies are not programs, and they cannot run like programs do. Therefore, they cannot gather any information on their own. Nor can they collect any personal information about you from your machine.

So What Are Cookies?

Cookies are very small files which are created whenever you visit a website, and then stored in your Internet browser. They contain small amounts of information which are available to whoever is running the platform you were on. An example could be an online shop's website that you were browsing or an advertising agency.

What Do Cookies Actually Do?

Let's say you are visiting a website selling watches. As you browse that site, you're only focusing on looking at expensive ladies' watches. The cookie that was downloaded onto your PC or MAC when you visited the site gathers information about the pages you viewed.

The next time you visit the watches' website, you'll find the home page has been tailored and is strongly focused on featuring high-end ladies' watches. This is due to the cookie using the information it gathered on your previous visit to the site. This kind of influencing is most relevant to your browsing history. A cookie will only store anonymous information, while giving you a unique ID.

It doesn't know your name or any details about you just that an anonymous ID likes high-end ladies' watches.

So What Are The Benefits?

Cookies are used all the time to tailor the Internet to the person using it. They're in use as soon as you open your Internet browser and cookies make sure your search results are as relevant as possible.

They also result in the user being offered recommendations based on past browsing behavior.

Additionally, they can even result in passwords and login details being remembered by your browser and remember preferences you've set within websites.

The Use Of Cookies In Display Advertising

With this kind of advertising, a cookie may be used to retarget consumers.

A third-party cookie could be put onto a website so that when you visit that site, then move on to the third-party site, you'll be retargeted with the original website's display ad. For example, say you visit sparerooms.com, a cookie gets dropped on your PC from aol.com and then you visit aol.com this website knows from your cookie that you've been to sparerooms.com and then will show you their display advert.