The article explains the necessity of using a custom context provider in application development, particularly for managing state and context in React applications. It emphasizes how custom context providers can enhance code organization, reusability, and scalability by allowing developers to create tailored solutions that meet specific project requirements.

Effectively managing state in the URL is crucial for enhancing user experience in React applications. By utilizing search parameters, developers can ensure that users retain their navigation context, enabling features like sharing links and bookmarking. The article emphasizes best practices, such as avoiding unnecessary state duplication and creating custom hooks to manage URL state effectively.