This is explained in the article. Apps use high-precision geolocation when requesting location-targeted ads, and you can target ads to specific locations, so if you blanket an area in ads you can indirectly track movement through the grid.
> They then used that DSP to place a geographic grid of location-targeted ad buys around a three-mile square section
> They then used that DSP to place a geographic grid of location-targeted ad buys around a three-mile square section