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Keeping in mind that all of the accumulated data is anonymous, there isn’t some universally important reason to reset the Ad ID and by no means should it be considered standard procedure. For some historical background, the Advertising Identifier is a relatively new creation, and previously advertisers tracked anonymous data by the actual device UDID.
Another reason might be if you have very weak willpower and you’re afraid you won’t be able to resist all those targeted ads! Another reason is you simply do not want to be tracked for any reason just because you do not.
So does the ON setting mean that it is blocking tracking or does OFF mean it is blocking tracking? Although the ad tracking features are anonymous, the ID can easily be used to associate activities with a person’s name.

In short, since Apple created this ability, vendors like Google have worked hard to make it irrelevant by getting your personal information through other means. Do you think they are making it that way to make it possible to profile and locate any user? When checked, Shutterstock's safe search screens restricted content and excludes it from your search results. Lightboxes allow you to categorize groups of photos and send them to your friends or colleagues. This means you can basically throw all the anonymously gathered data about a device that is used to serve relevant ads out the window and start fresh, thereby removing any of the targeted data that has been accumulated and assigned to that Advertising ID. What that will do is completely deny the ability for anonymous data to be gathered about the device to serve more relevant ads, outside of web cookies.

Because the UDID is tied to hardware and not possible to reset, Apple created the Advertising ID as an alternative to the UDID, one which can be freely reset and directly controlled by the user much like cookies and browser history can be managed at any time. Subscribe to the OSXDaily newsletter to get more of our great Apple tips, tricks, and important news delivered to your inbox!
Although the identifier is anonymous by itself, it is easy for an app developer to attach it to your name by asking you to log in. For example if you have every Angry Birds app installed on the device and do 100 web searches for Angry Birds a day, disabling ad tracking would prevent you from seeing ads relevant to that topic.

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