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What is Personalized Intrest Based Google Advertisement System and how it works

Personalized Ad system or Interest based Ad system is a programme of Google by which Advertisements are displayed according to users’ interests. The interests of any particular individual are checked by keeping track of cookies. That is why this system is also referred to as Google's cookie ad system. Google reads the data defined in the cookies, by which it finds the browsing trends of any user, these browsing trends are then used to make decisions about any the interests of any person. This type of advertisement will override the contextual advertising structure in situations. Google also allows the option in chrome to mark your interests so that the ads displayed to you are those which are most relevant to your interests.
I have practically seen the enforcement of this advertising structure. I was on a technology website when I saw ads related to programming and programming languages. Before going to that technology website I was surfing some codes on the coding websites. So Google tracked the cookies and presented the ads related to programming on a website which did not have any far off relation with programming. So those ads were not contextual. I then deleted the cookies, reloaded the page and got astonished that ads were replaced by contextual ads i.e., the ads were based on the keyword present in the content of that website. In case if it fails to identify interests of any particular users it displays targeted contextualized ads.
Google also offers a plug-in if you want to opt out of such type of advertisement system targeted on you. If you turn off the cookie based advertisements, then you will never see any more interest based advertisements. Instead you will always be displayed contextual advertisements related to content of any webpage. To turn off cookie based personalized ads, you can move here.
Or on the other hand you can manually customize your interests here and set preferences which suit you most. If you opt in for this then you are allowing Google to track your cookies.  Google will govern the adsense ads according to your interests. But remember this is browser dependent if you change your browser or machine then this will not work.
In my opinion you should allow Google to track your interest as I have found the displayed ads very much useful, helpful and interesting to myself, many times.