”Tracking” means to follow. Tracking apps send you personalized ads. Apple recently made an adjustment via the latest update for the iPhone, so that apps will ask for permission whether they can track you.
The app asks for permission to the ‘Identifier For Advertisers’, which means that the smartphone behavior is saved. Everything you do and search on the smartphone is registered and can be shared with advertisers, without your identity being revealed. This information is used to send personalized advertisements that match your interests.
It is possible to not allow apps to track your behavior. You do this by moving the ‘Allow tracking requests from apps’ to the gray area. This ensures that you will no longer receive notifications about allowing tracking by apps.
Allowing tracking doesn’t hurt much. Your personal information is separate from your advertising profile. This prevents advertisers and third parties from linking your behavior to you as a person.
By not allowing tracking, you will also see much less attractive ads. It is not yet clear what the long-term consequences will be.