You are aware that Google sends you advertisements based on the analysis of specific data collected from your account. For this, Google uses a special advertising identifier. The data collected from your account is not only used to provide more relevant ads. Google also uses it for analytics and fraud prevention. Therefore, if you disable ad personalization, Google will not use your ID to serve you personalized ads. But this does not mean that the other two processes are also stopped. So now ad personalization, analytics and fraud prevention related only using collected data. But this will change in the near future.
At this time, you can opt out of personalized ads by going to Settings > Google > Ads or Settings > Privacy > More > Ads on your Android device. As mentioned, after these steps, Google will simply stop sending personalized advertising recommendations to your device. But Google will still collect data from your advertising credentials.
Google may remove your advertising ID
However, if you believe the latest update on Play Console help page, Google Play Services is going to remove the advertising identifier when you opt out of interest-based advertising. So “starting in late 2021, when a user opts out of interest-based advertising or ad personalization, the advertising ID will be unavailable. You'll get a string of zeros instead of an ID."
Simply put, all apps on your Android device will see a string of zeros instead of your advertising ID if you turn off personalized ads. In addition, Google Play Services will send notifications to all those applications that collect data. We mean that Google will inform them that any existing data can be deleted. developer, kdrag0n, also noticed, that "The phased rollout of Google Play services will affect apps running on Android 12 devices starting in late 2021, and will expand to apps running on Google Play-enabled devices in early 2022." Also, according to Google, they will provide more details in July. In addition, we will see an alternative solution to support important use cases such as analytics and fraud prevention.
Although there is still not enough information about the alternatives that Google can offer, one thing is clear - all major technology companies, such as Google, Apple, Facebook and others, are reviewing their privacy policies. Of course, all these companies are under external pressure. But we are more interested in how the user privacy policy changes and what effect it will have.