Your activity on Twitter, the information you provide to Twitter, and our relationships with ad partners all help make promoted content more relevant for you.
When you use Twitter to follow, Tweet, search, view, or interact with Tweets or Twitter accounts, we may use these actions to customize Twitter Ads for you. For example, if you search for a specific term, we may show you promoted content related to that topic. We also might customize ads using other information about you, such as your profile information; your mobile device location (if location features are turned on); your IP address; or the apps installed on your device. This helps us show you local ads and other ads that you might prefer.
Twitter may also personalize ads based on information that Twitter and our affiliates collect and that our ad partners share with us, such as a hashed email address, a mobile device identifier, or browser-related information (a browser cookie ID).
This helps Twitter display ads about things you've already shown interest in from brands and businesses that you may like. For example, you could receive a Promoted Tweet that includes a deal or promotion from a business whose website you frequent or email newsletter you subscribe to.
Source: https://business.twitter.com/en/help/troubleshooting/how-twitter-ads-work.html