Server side tracking explained

Server-side tracking represents a modern approach to gathering online data. Understanding the differences between server-side and client-side tracking is crucial for grasping the nuances of these data collection methods. With evolving online privacy regulations, traditional data collection has become more restricted and challenging. Currently, cookies are the primary means of online data collection. However, Google has announced that tracking cookies, including third-party and cross-domain cookies, will be phased out in the coming years. Although Google has delayed the deadline multiple times, compliance will eventually be mandatory for all.

The elimination of third-party cookies will make it increasingly difficult to collect data and derive accurate insights. Already, several industries are experiencing up to a 30% loss in data due to various blocking measures. We'll delve into the reasons for this data loss later in this blog.

Server-side tagging offers a solution by enabling continued, privacy-friendly (GDPR-compliant) data collection. It represents the next logical step in marketing strategy. But what exactly is server-side tracking, and how is it implemented? This article will explore the world of server-side tracking and its installation process.

What is Server Side Tracking?
Server Side Tagging: The benefits
Are there any drawbacks?
What is the difference between a Web container and a Server container?
Future Changes in Legislation
How do you get started with Server Side Tracking?
Start transitioning to Server Side Tracking
Frequently Asked Questions
What if I don’t make the switch to Server Side tagging?
Does my website still need a cookie banner?
How much extra money does Server Side Tracking make me?

What is Server-Side Tracking?

This question comes up frequently. Server-side tagging offers an alternative to the conventional client-side tagging method. Traditionally, client-side tagging involves placing pixels and cookies directly in the user’s browser, which then sends user data to various software applications like Google Analytics or Google Ads. The drawback of this approach is that the data stream can be easily blocked.

Server-side tracking changes this process. Instead of loading tracking scripts in the user's browser, they are loaded from your own domain, and the data is first sent to your server. This creates an intermediary layer that gives you control over which data is shared with different software platforms. A significant advantage of this method is that it prevents the data stream from being blocked. Additionally, server-side tracking offers numerous other benefits.

But what does Server-Side Tracking entail?

Server-side tagging works by loading tracking scripts from your own domain and sending the data to your own server first. This creates an intermediary layer that gives you complete control over which data is shared with which software.

The Advantages of Server-Side Tagging

Server-side tracking brings a host of benefits to the table, including:

Enhanced Data Collection
Compliance with GDPR
Improved Website Speed
Greater Data Control
Increased Flexibility

Want to know all the benefits of server-side tagging? Keep reading to learn more.

1. Enhanced Data Collection

Data is the backbone of online marketing, allowing for precise ROI calculations on marketing campaigns through tracking cookies and conversion tags. However, privacy concerns are prompting users to avoid tracking, with browsers like Safari and Firefox blocking third-party cookies and recent iPhones (iOS 14.5) offering opt-out options. Additionally, ad blockers can further restrict data flow. This results in a significant reduction of available data, making it harder to measure and optimize campaigns.

Server-side tracking addresses these challenges by enabling more reliable data collection. By using the Facebook Conversion API and setting up server-side tags with Google Tag Manager, you can improve data accuracy and maintain comprehensive campaign tracking.

2. Compliance with GDPR

As privacy regulations like the General Data Protection Regulation (GDPR) become more stringent, ensuring compliance is critical. Issues like lawsuits against Google for storing data on U.S. servers highlight the need for GDPR compliance, as this storage potentially allows the FBI access to European data.

Server-side tagging offers a solution by hosting data on European servers, thus avoiding these compliance issues. For example, Onetagger hosts data on Belgian servers by default, ensuring legal use of Google Analytics.

3. Improved Website Speed

Client-side script loading can slow down your website, adversely affecting user experience and search engine optimization (SEO). Server-side tracking minimizes loading times by managing tracking synchronously on the server, leading to a faster and more efficient website.

We've conducted a study on the speed improvements achieved through server-side tracking, which you can check out here.

4. Greater Data Control

With client-side tagging, data is readily available to all installed tags, which can compromise data privacy. Server-side tracking provides more control over which data is shared, allowing you to protect sensitive information. This control is especially crucial for industries like healthcare, government, or any field dealing with confidential data.

5. Increased Flexibility

As businesses adopt more software solutions, each with its own data collection methods, unifying this data becomes challenging. Server-side tagging facilitates data integration from various software into the GTM server container through an API. Using a Google Tag Manager container, you can set up a server-side tagging environment, configure a server, and manage a Client in Google Tag Manager. This setup allows you to combine and forward data as needed, enriching conversion data with CRM information and enhancing marketing campaign results.

Server-side tagging is an effective tool that improves data collection, ensures privacy compliance, speeds up your website, and provides enhanced control and flexibility in data management.

Are There Any Drawbacks?

Every solution comes with its own set of pros and cons, and server-side tracking is no exception. The three main drawbacks include:

Complexity
Software Compatibility
Cost

1. Complexity

Implementing server-side tracking requires a thorough server setup, demanding technical expertise and a clear understanding of the necessary technical requirements. While configuring tags, triggers, and variables in the web container is well-documented, server-side tracking adds an extra layer of complexity. Since this is a relatively new development, comprehensive documentation is still emerging. However, this will improve as more companies adopt server-side tracking. To help with the setup, we've created a detailed checklist.

2. Software Compatibility

Not all software is currently compatible with server-side tracking. For instance, Hotjar can only be installed client-side. However, by using the recommended Google Tag Manager setup, you can manage both server-side and client-side tags, mitigating this issue.

3. Cost

Using server-side tracking with Google Tag Manager requires server space, typically arranged through Google Cloud. This can be costly, with monthly fees starting at €120. Due to the extensive features and large scale of Google Cloud, these prices are inevitable. However, Onetagger offers a specialized server-side tracking hosting product at a more affordable rate. Our paid subscriptions start at just €25 per month, and we offer free plans for very small websites.

Differentiating Web Containers from Server Containers

What Sets Web Containers Apart from Server Containers?

A web container directly collects data via tags sent to the user's browser. On the other hand, a server container routes data to a server first, allowing you to control which data is subsequently sent to various platforms like Google Analytics. Implementing a server container requires setting up a server-side tagging environment, often using Google Tag Manager, to streamline data management and monitoring.

At present, many companies use a method where data is initially collected by the web container, which then forwards it to the server container. However, this process is likely to change in response to new laws and regulations, leading to shifts in data management practices.

Preparing for Future Data Privacy Regulations

The Evolution of Data Tracking Practices

If you are currently utilizing server-side tagging, you are probably employing a hybrid approach that combines both web containers and server containers. However, this dual-method process is likely to undergo significant changes due to impending legislation. As new laws and regulations come into effect, the traditional web container method will likely be phased out, leaving server-side tracking as the primary approach.

The Reason for the Shift

Stringent privacy laws, such as the GDPR and other privacy regulations, are putting increasing pressure on the traditional web container method. This heightened scrutiny will likely lead to the eventual banning of web container practices. Consequently, it is crucial for businesses to begin transitioning to a full server container approach for data tracking and processing to ensure compliance with future regulations.

Initiating Server-Side Tracking: A Comprehensive Guide

Ready to Start with Server-Side Tagging?

Excited about the advantages and ready to dive in? Starting with server-side tracking might seem daunting, but we're here to simplify the process for you. Our goal is to make SST accessible to every business.

There are various ways to implement server-side tracking, but we recommend using Google Tag Manager (GTM). Given its widespread use, building on GTM is a logical step. This method allows you to enhance your current tag setup without a complete overhaul.

Every company uses Google Tag Manager differently. E-commerce sites track sales, B2B companies measure leads, and nonprofits monitor engagement. Therefore, no single implementation fits all. However, there are essential steps to begin with GTM server-side tracking. Below are the steps you need to follow.

To set up a server-side tag in Google Tag Manager, you need to deploy a server-side GTM container in the cloud and keep it updated according to the server-side container settings.

Key Steps to Get Started:

Google Tag Manager Web Container
Optional: A Working Data Layer (for e-commerce and online sales)
Google Tag Manager Server Container
Subdomain for the Server
Server Hosting

At Onetagger, we provide a step-by-step guide through this setup. We explain each component in detail to ensure it fits your business needs.

The main advantage of server-side tracking with Google Tag Manager is that it integrates with your existing structure. This allows you to implement it easily and, if necessary, revert to your previous setup. This approach enables you to test the benefits of server-side tracking for your business with minimal risk.

Begin Your Transition to Server-Side Tagging

Ready to harness the benefits that server-side tagging can offer for your business or your clients? Start by creating a free account with Onetagger. We provide comprehensive setup assistance and expert guidance to help you maximize your tracking capabilities.

Why Create an Account with Onetagger?

Expert Guidance: Our team will walk you through the entire process, ensuring a smooth transition and optimal setup.
Comprehensive Setup: We offer detailed step-by-step instructions to implement server-side tracking effectively.
Enhanced Data Control: With Onetagger, you can fully leverage the power of server-side tracking to gain better control over your data.
Improved Compliance: Stay ahead of privacy regulations by adopting a more secure and compliant tracking method.
Scalable Solutions: Whether you’re a small business or a large enterprise, our solutions are designed to scale with your needs.

Don't miss out on the opportunity to improve your data tracking and stay compliant with upcoming regulations. Create your free Onetagger account today and start reaping the benefits of server-side tracking!

Frequently Asked Questions

What happens if I don't transition to server-side tagging?

If you don't transition to server-side tagging, you'll face significant challenges as more browsers block third-party cookies. The quality and quantity of your data collection will drastically decline, meaning you'll track significantly fewer events on your website. This reduction in data accuracy will lead to poorer performing campaigns and traffic that can't be accurately attributed to its sources. Additionally, you may fail to comply with GDPR regulations without server-side tracking.

Do I still need a cookie banner if I switch to server-side tracking?

Yes, you will still need a cookie banner even after switching to server-side tracking. While you will be using first-party cookies instead of third-party cookies, you are still collecting data from users on your website. It's essential to inform users about these cookies and obtain their consent, as required by privacy regulations.

How does server-side tracking improve data security?

Server-side tracking enhances data security by keeping user data within your server environment. This approach reduces the risk of data breaches and unauthorized access, as data is not exposed to external tracking scripts and third-party servers. It also allows for better compliance with data protection regulations.

What technical skills are required to set up server-side tracking?

Setting up server-side tracking requires a basic understanding of server management and familiarity with Google Tag Manager (GTM). While it may seem complex at first, resources and guides provided by Onetagger can help simplify the process. For those without technical expertise, Onetagger offers step-by-step assistance to ensure a smooth implementation.

Can I use server-side tracking with all my existing marketing tools?

Yes, server-side tracking is compatible with most marketing tools and platforms. By integrating server-side tracking with tools like Google Analytics and Facebook Conversion API, you can continue to collect and analyze data effectively. This integration allows for more accurate tracking and better optimization of your marketing efforts.

How does server-side tracking affect website performance?

Server-side tracking can significantly improve website performance. By shifting the tracking load from the client-side to the server-side, you reduce the amount of data processing required in the user's browser. This leads to faster page load times, enhanced user experience, and better SEO performance.

Is server-side tracking suitable for small businesses?

Yes, server-side tracking is suitable for businesses of all sizes. While the initial setup may require some technical effort, the long-term benefits of improved data accuracy, compliance, and website performance make it a valuable investment for small businesses looking to optimize their marketing strategies. Onetagger offers affordable solutions tailored to the needs of small businesses.

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