Is Google tracking you

The answer to this varies, have you ever wondered when you searched for a term, the following day you see nothing but adverts based on your search term, this is personalised advertising and is designed to help you find the products that you are looking for at the best prices. When you do a search in google you leave a cookie file that lists the terms you are interested in and it tells the websites that publish the advertisements read this file and serve the adverts that you are interested in.

When you are leaving these cookies they do not save anything personal like your name, they are saving things like age, sex and sites visited.  All of these things are to make sure you as a customer get the best experience.

Analytics, what is it?

Google analytics tells the webmaster about your interactions with their website, it tracks things like, the pages you are visiting, how long you spend on the page, which pages you click back on and many other things.  It saves a session cookie but does not identify the user in any way so is completely anonymous.  This allows the webmaster to improve your experience on their website.