For large private companies, they want to track all your data to make things tailored as close to you as possible.
If they notice that you are black and black people buy a specific item (say chinos instead of jeans) more than other ethnicities, they can tailor ads to you closer to what their data suggests in the hope that you buy more stuff.
The models are a lot more complex than just ethnicity (they’ll look at literally everything: your age, time of day, type of device), but this is a simplified version of what happens.
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