One of the reason Google is loved so much around the world is because it offers everything free of cost. All Google products and services are virtually free for any internet user, and they are also the best in class. However, many people fail to understand that why these products are free in the first place?
A simple answer is because Google can track the way you use the product and show relevant advertisement. In fact, 97% of Google's revenue comes from selling advertisement.
Google makes this personal profile for every user based on his activites on Google products. This ad profile lists your sex, age, languages, interests and other informnation that advertisers want to know. If your details match the advertisers needs, you will be shown those ads.
Here is a infographic explaning the core concept -
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