What is Google Tag Manager Server Side and What Are Its Benefits?

Google Tag Manager Server-Side (GTM SS) is a topic gaining popularity in the world of web analytics. Many experts predict that it is the future of analytics implementations. However, before investing time and resources into this technology, it is important to understand what benefits it can bring and what challenges it may entail. In this article, we will discuss what server-side tagging is, its major advantages, potential drawbacks, and how it impacts the phase-out of third-party cookies.

What is Server-Side Tagging?

Server-side tagging involves shifting part of the data collection process from the user’s browser to a server. In traditional client-side tagging, data is collected directly by the browser and sent to various analytics and marketing platforms. With server-side tagging, data is first sent to our server, where it can be appropriately processed before being forwarded to other platforms.

Benefits of Server-Side Tagging

Reduced Page Load

One of the main issues with traditional client-side tagging is the burden it places on the page. Every additional JavaScript script you add to the page can slow down its performance. Even if the scripts load asynchronously, they can still affect speed. Server-side tagging allows data to be sent to a server where it is processed and forwarded, significantly reducing the number of scripts running directly in the user’s browser.

Classic Approach

GTM SS Approach

Control Over Data Sent to Vendors

JavaScript scripts loaded on a page can collect more data than we might expect. They can gather information about the user’s device, the URL of the page, and the title of the page, among other things. With server-side tagging, we have full control over what data is sent to external vendors, enhancing the privacy of our users.

Reduction in Adblocker Impact

Adblockers often block scripts used for tracking site activity. With server-side tagging, data is sent to a server within our domain, making it less likely to be blocked by adblockers.

Data Integration and Enrichment

One of the most valuable aspects of server-side tagging is the ability to enrich data before sending it to external vendors. We can combine data from various sources, such as CRM systems, e-commerce platforms, or internal databases. For instance, user data can be enriched with product information, lead quality, or purchase history, enabling more advanced and precise analysis.

Drawbacks of Server-Side Tagging

Costs

While the server-side container in Google Tag Manager is free, hosting the server it runs on incurs costs. For a medium-sized website, costs can amount to approximately $120 per month.

High Technical Expertise Required

Server-side tagging requires more technical knowledge than traditional client-side tagging. You need to understand how JavaScript works, how to configure servers, and how Google Tag Manager functions in its server-side version.

How the Phase-Out of Third-Party Cookies Affects Server-Side Tagging

The phase-out of third-party cookies by web browsers has forced many marketers to seek alternative ways to collect user data. Third-party cookies were a major tool for tracking users across different websites, allowing for more precise ad targeting. However, due to increasing user privacy awareness and legal regulations such as GDPR, browsers have started blocking third-party cookies.

Server-side tagging allows for more precise data collection and processing, which is less susceptible to browser-imposed limitations such as ITP (Intelligent Tracking Prevention) in Safari. This enables us to continue effectively gathering user data while simultaneously ensuring better privacy protection. Requests sent to our server are treated as first-party cookies, which helps to bypass the blocking of third-party cookies.

Conclusion

Google Tag Manager Server-Side is a powerful tool that can significantly improve the accuracy and security of collected data. However, it requires greater technical knowledge and additional financial costs. Small businesses may initially do without it, but for larger companies that rely on data, it is worth considering implementing this solution.

Server-side tagging offers many benefits, such as reducing page load, better control over data sent to vendors, reducing the impact of adblockers. Additionally, the ability to integrate and enrich data before sending it to external vendors allows for even more advanced analysis and optimization of marketing efforts.

However, due to costs and technical requirements, it is not a solution for everyone. Therefore, it is worth carefully considering all the pros and cons before deciding to implement server-side tagging in your company.