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Google Analytics works by means of tracking code that is added to the pages of your website. Every user is registered with a unique ID, so that Google Analytics can provide you with insight into how many unique visitors there are to the site, for example, and how many users return.
With Google Analytics, one can survey how often any single user has visited the website, what pages they visited, for how long they stayed and how they interacted with the site.
Combined with their enormous statistical data on internet users, Google Analytics can provide very precise information on what segments your website attracts according to demographics such as age, gender, professional and private interests, geographical location etc.
An accurate overview of what data Google Analytics actually tracks is difficult to get hold of, as it is constantly developing and improving, and Google does not provide transparency about their methods.
According to their Google Ads Data Protection Terms: Service Information, Google Analytics collects the following types of personal data:
Online identifiers including cookie identifiers
internet protocol addresses and device identifiers
"We collect information to provide better services to all of our users – from figuring out basic stuff like which language you speak, to more complex things like which ads you’ll find most useful, the people who matter most to you online, or which YouTube videos you might like.