The repercussions of the Cambridge Analytics scandal are still playing out and marketers face numerous challenges when it comes to tracking user behaviour and measuring campaign performance. Server-Side Google Tag Manager (sGTM) has emerged as a powerful solution to these challenges, offering improved advertising performance, enhanced data collection, stronger privacy compliance, and better website performance.
Given all these benefits is there a reason not to implement sGTM? Let’s explore the problems that sGTM overcomes, what it delivers, and obstacles to implementation. And provide some insight into whether this is worth it.
The Tracking Dilemma
Third-Party Cookie Blocking
Web browsers are increasingly blocking third-party cookies, which have long been the backbone of online tracking and advertising. This shift has significantly impacted our ability to track user behaviour across different websites and deliver personalised experiences.
iOS and Safari Restrictions
Apple’s iOS and Safari browser have implemented strict privacy measures, including blocking third-party cookies and GTM scripts. This has created a significant blind spot, particularly when targeting Apple device users.
Impact on Conversions
The diminished tracking capabilities directly affect our ability to measure and optimise conversions. With less data available, it becomes challenging to attribute sales and conversions to specific ad campaigns, leading to ineffective targeting and budget allocation.
Server-Side GTM: The Solution
Enhanced Data Collection
sGTM moves data processing from the user’s browser to a secure server environment. This approach allows us to bypass ad blockers and tracking prevention measures implemented by browsers like Safari and Firefox. The result is a significant increase in measurable data, with some studies showing a 5-30% boost in recorded pageviews and conversions.
Improved Privacy Compliance
sGTM helps us navigate the complex landscape of privacy regulations such as GDPR and CCPA. By centralising data processing on the server, businesses can implement stricter controls over data handling and user privacy. This centralised approach allows for easier implementation of consent management systems and data anonymisation techniques.
Better Website Performance
By shifting the processing load from the user’s browser to the server, sGTM can significantly improve website performance. This leads to faster page load times, which not only enhances user experience but also positively impacts SEO rankings.
Increased Conversion Tracking
The implementation of sGTM can lead to a substantial increase in tracked conversions. This is achieved through:
- Bypassing ad blockers and tracking prevention measures
- Utilising first-party cookies, which are less likely to be blocked
- Implementing enhanced tracking scripts that are less detectable by ad blockers
Data Quality and Control
sGTM provides greater control over your data. It allows for data enrichment and customisation before sending it to various marketing and analytics platforms. This capability is particularly valuable as third-party data becomes less available, enabling you to build more accurate user profiles and targeting strategies.
Compliance with Privacy Regulations
When properly implemented, sGTM can help organisations comply with privacy regulations. It facilitates the collection of granular user consent and allows for more precise data handling practices. By pairing sGTM with Google Consent Mode, you can ensure that tags respect user privacy choices, making it easier to navigate the complex landscape of data protection laws.
Real-World Impact
Case studies have shown the tangible benefits of implementing sGTM. For instance, one university reported a 100% increase in webpage conversions, a 57% decrease in cost-per-acquisition, and a 350% increase in reach after implementing a server-side tagging solution.
Obstacles to Implementing sGTM
While sGTM offers clear benefits and some lucrative upsides, it’s not simple to implement.
Technical Complexity
Implementing sGTM requires a significant level of technical expertise. Unlike traditional client-side GTM, sGTM involves setting up and managing a dedicated server, which can be particularly challenging for smaller companies with limited technical resources.
Cost Considerations
The financial aspect of sGTM implementation can be a substantial barrier. Operating a dedicated server or using a cloud solution incurs ongoing costs, which may be higher than using client-side GTM. These expenses can escalate for high-traffic websites, potentially straining budgets for smaller businesses.
Learning Curve
sGTM introduces new concepts and workflows that differ from traditional GTM. This steep learning curve requires investment in training and upskilling for both marketing and development teams.
Criteria to Determine sGTM Suitability
It’s always exciting to implement new tech and sGTM is no different. But given its complexity, you have to assess whether your organisation really needs it.
Data Volume and Complexity
Businesses handling large volumes of data or complex data structures are more likely to benefit from sGTM. If your organisation requires extensive data manipulation or enrichment before sending it to various platforms, sGTM could be a valuable solution.
Privacy Compliance Requirements
If your business operates in regions with strict data protection laws or deals with sensitive user information, sGTM’s enhanced control over data processing and transmission can be particularly beneficial.
Website Performance Priorities
For businesses where website speed is crucial (e.g., e-commerce sites), sGTM’s ability to reduce client-side script load can significantly improve page load times and user experience.
Marketing Technology Stack
Evaluate your current marketing technology stack. If you rely heavily on tools that already support server-side integration, the transition to sGTM might be smoother and more beneficial.
Resource Availability
Consider whether your organisation has the necessary technical expertise and budget to implement and maintain an sGTM setup. This includes both initial setup costs and ongoing maintenance expenses.
Prerequisites for Implementing sGTM
If you decide that sGTM is something your organisation needs, here are some items to check off with your implementation team.
Technical Infrastructure
Ensure you have the necessary server infrastructure in place. This typically involves setting up a cloud server to send data to.
Team Expertise
Your team should have a solid understanding of server-side technologies, API integrations, and advanced GTM concepts, or have access to reliable subject matter experts.
Data Strategy
Develop a data strategy that outlines what data you need to collect, how it will be processed, and where it needs to be sent. This strategy should align with your business objectives and compliance requirements.
Vendor Compatibility
Check that your key marketing and analytics vendors support server-side integration. While many major platforms offer this support, some niche tools might not be compatible.
Budget Allocation
Secure budget not just for the initial setup but also for ongoing costs related to server hosting, maintenance, and potential consultancy fees.
Compliance Requirements
Understand the requirements your organisation is subject to and how sGTM will be used to meet privacy regulations such as GDPR or CCPA.
Given that tracking is essential and privacy regulations are not going to become more lax, server-side GTM is becoming an essential tool for marketers. It offers a solution to the challenges posed by increased privacy measures and browser restrictions while providing enhanced data collection capabilities and improved website performance.
Although complex, working with an experienced implementation team can ensure you’re well-equipped to navigate the cookieless future, maintain accurate conversion tracking, and deliver personalised experiences while respecting user privacy.