Server-Side 101
In today's digital world, we’re facing the challenge of advertising online while (a) staying compliant with U.S. internet privacy laws and (b) slowly losing user data due to privacy-focused browsers and adblockers. One innovative tool that has gained attention and credibility recently is Server-Side Google Tag Manager (“SSGTM”).
Let's explore what it is, how it works, and how it can boost your digital advertising campaigns.
What is Server-Side Google Tag Manager?
Server-Side Google Tag Manager (SSGTM) is an enhanced version of the traditional Google Tag Manager (GTM). While standard GTM runs in the user's browser (“client”-side), SSGTM moves data processing and transmission to your server. This shift offers greater control over data handling and enhances website performance. To clarify: your traditional browser-side GTM container will still be used, but a server-side container will be added.
How Does SSGTM Work vs Traditional Browser-side GTM?
Traditional (Browser-Side) Tracking:
When a user visits your website, their browser loads various tracking scripts (tags) that collect data for analytics and advertising purposes.
These scripts can slow down your website, negatively affect user experience, and are often blocked by ad blockers and privacy settings, making users' activity anonymous and un-actionable.
Server-Side Tracking with SSGTM:
Instead of executing scripts directly on the user's browser, slowing it down and remaining susceptible to data loss, cookie/ad blockers, and other privacy features, the browser simply tracks actions on your site—like clicks, scrolls, and page views—and sends this data directly to a server you own for further processing and distribution to third parties such as GA4, Meta, and others.
Note: SSGTM doesn’t replace browser-side GTM, but rather complements it and takes on most of the “heavy lifting.”
This method offers a cleaner, faster user experience and gives you the opportunity to control what data is collected and sent to third parties—great for data security and compliance with future internet privacy legislation.
Key Benefits
Optimized Advertising Campaigns:
Better Insights: More accurate data allows ad platforms (and us) to make smarter decisions, which leads to better campaign optimization.
Higher ROI: Improved targeting and measurement can lead to more effective campaigns and better returns on ad spend.
Accurate Data Collection:
Bypass Ad Blockers: Since data is collected server-side, it's less likely to be blocked by browser-based ad blockers, leading to improved targeting and ad delivery, plus more accurate analytics.
Consistent Tracking: Ensures consistent data collection across different browsers and devices.
Enhanced Data Privacy Control Tools:
Control Over Data: With server-side tracking, you have more control over what data is collected and how it's used, helping you stay compliant with ever-shifting internet privacy laws.*
Data Security:
Sensitive information is processed on your server, reducing the risk of data breaches.
Improved Website Performance:
Fewer browser scripts mean quicker page loads, which keeps users engaged and reduces bounce rates.
*Important note regarding compliance:
SSGTM will not affect your privacy compliance status. You’re likely already compliant, and implementing SSGTM won’t change that.
The important thing to understand is that SSGTM gives you much more control over how your website users' data is collected and where it’s sent. This allows you to make your own decisions and ensure your users' privacy and compliance with laws if things change in the future and it’s necessary to do so.
If, for instance, you decide to adjust how much data you share with a third-party platform due to a shift in your privacy policy or changing business priorities, SSGTM allows you to make those adjustments without losing access to that platform’s benefits.
Costs and Considerations
Implementation Costs:
Initial Setup: Setting up SSGTM is a fairly technical process, but RAIN is practiced and prepared with resources to guide you through it. Plus, it’s relatively simple using a platform like Stape.io.
Hosting Fees: Maintaining a cloud server incurs monthly costs, which vary based on traffic and your cloud provider (we use Stape and Google, and find that Stape makes more sense for most of our clients)
Google Cloud Platform (GCP): Can range from $50 to several hundred dollars per month, depending on website traffic and server resources. GCP's Cost Calculator
Stape.io: Offers plans starting as low as $20 per month, which include hosting and support. Stape's Cost Calculator
Note: Cost Calculators' estimates will be accurate for most cases, but can change depending on the choices you make during set-up.
Maintenance:
Ease of Management: Platforms like Stape.io simplify server maintenance, making it less daunting.
Improvements To Expect
Compliance Alignment via Data Control: Better data control ensures alignment with privacy laws, reducing legal risks.
Reliability: Less impacted by ad blockers and browser limitations, even as they constantly change.
Performance:
Increased Conversion Rates: Faster sites and better user experiences can boost engagement and conversions.
Improved Data Accuracy: Reliable data helps fine-tune campaigns for better performance.
Expected Improvements: While results vary, on average, many institutions adopting SSGTM are seeing:
Up to 50% Faster Page Loads: Keeping users engaged longer.
10-20% More Accurate Data: Leading to smarter campaign decisions.
15-25% Better ROI on Ad Spend: Through improved targeting and insights.
A Practical Example
Imagine you're running an online campaign for a new savings account people can apply for on your website. We want to track how users interact with your website after clicking on your ad, so you can understand your ads' effectiveness and optimize your campaigns.
Traditional (Browser-Side) Tracking:
User Clicks Ad: A potential customer sees your ad and clicks on it.
Loading Tracking Scripts: When they arrive at your website, their browser loads several tracking scripts (tiny programs) that collect data about their visit. These scripts are like digital observers noting down what the user does.
Data Collection Challenges:
Ad Blockers: If the user has an ad blocker, these scripts might be blocked, so you receive no data.
Privacy Settings: Modern browsers may limit tracking capabilities by default.
Result: You might not know that the user visited your site, what pages they viewed, or if they started an application form.
Server-Side Tracking with SSGTM:
User Clicks Ad: The same user clicks on your ad and lands on your website.
Server Receives Data: Instead of relying on the user's browser to run tracking scripts and send user data directly to multiple third parties, the website itself (your server) collects data about the visit.
Processing Data on the Server:
Your server gathers information such as pages visited, time spent, and actions taken (e.g., starting an application).
Since this happens on your server, ad blockers and browser privacy settings have less impact.
Sending Data to Third-Party Services:
The server sends the relevant data to tools like Google Analytics or your advertising platforms.
This communication is secure and allows you to control exactly what data is sent.
If you collect sensitive user information, data can be anonymized or certain parts excluded before being sent it to third-party services, reducing privacy risks.
Result: You receive accurate data about the user's interaction, allowing you to measure campaign effectiveness and optimize future ads.
The Challenge: Declining Access to Personal User Data
Understanding Cookies and Ad Blockers
Cookies: Think of cookies as small notes that a website asks your browser to hold onto. These notes help websites remember who you are and what you've done on the site. For example, a cookie allows a bank's website to remember that you've added items to your online application form if you navigate away and return later.
Ad Blockers and Privacy Settings: Many users install ad blockers or adjust their browser settings to prevent tracking. This is like telling your browser to refuse to hold onto or share these notes. While this enhances user privacy, it also means advertisers receive less information about user behavior.
Impact on Digital Advertising
Less Personalization: Without cookies and tracking data, it's harder to personalize ads based on user behavior. This can lead to less effective advertising campaigns.
Incomplete Data: Advertisers receive fragmented information, making it difficult to measure campaign performance accurately.
Enhanced, Not Perfect Data Collection
SSGTM can reduce or mitigate the negative effect of ad blockers and browser privacy settings since data collection occurs on your server rather than the user's browser, however…
Advanced Privacy Tools: Some sophisticated privacy tools and browser features may still limit data collection, even with server-side tracking.
Browser Limitations (ITP and ETP): Technologies like “Enhanced Tracking Protection” (ETP) in Firefox and “Intelligent Tracking Prevention” (ITP) in Safari limit tracking capabilities on both the client-side (browser) and server-side.
Legal Requirements Remain (Consent): Privacy laws like the California Consumer Privacy Act (CCPA/CPRA) require you to provide mechanisms for users to opt out of data collection, and respect their preferences.
Third-Party Cookie Restrictions: SSGTM doesn't fully overcome issues related to third-party cookie restrictions imposed by browsers. For example, we used to be able to see your websites' browsing history and behavior, which may have helped ad platforms with targeting, but now we can’t do that, even with SSGTM.
What If We Don’t Implement?
If you decide not to implement Server-Side Google Tag Manager (SSGTM), your digital advertising efforts will continue to rely solely on traditional client-side (browser-based) tracking methods. In the current environment—where privacy laws and user expectations are increasingly limiting data collection—this approach may lead to several challenges:
Continued Data Loss:
Ad Blockers and Privacy Settings: More users are employing ad blockers and adjusting browser settings to enhance their privacy. These tools often block or limit client-side tracking scripts.
Incomplete Data Collection: As a result, you'll receive less accurate data about your website visitors, making it harder to understand user behavior and measure campaign performance.
Reduced Advertising Effectiveness:
Limited Personalization: With less user data, tailoring ads to individual preferences becomes more challenging, potentially decreasing engagement and conversion rates.
Inefficient Budget Allocation: Incomplete data can lead to less informed decisions about where to allocate your advertising spend.
Compliance Challenges:
Less Control Over Data Handling: Client-side tracking offers limited control over how data is collected and processed, which can make it harder to comply with evolving privacy regulations.
Alternatives to SSGTM
While SSGTM helps mitigate data loss more effectively than traditional methods, there are other strategies to consider which can work in tandem with it as well:
Enhance First-Party Data Collection:
Direct User Engagement: Encourage users to provide information willingly through account sign-ups, surveys, or personalized content offerings.
Value Exchange: Offer incentives like exclusive content or promotions in exchange for user data, building trust and transparency.
Contextual and Content-Based Advertising:
Serve ads based on the content of the webpage rather than user-specific data. This method respects user privacy and is less affected by data restrictions. It can also be difficult, as there’s only so much contextual inventory, and a lot of competition for it.
Consent Management Platforms (CMPs): Implement clear consent mechanisms to comply with privacy laws and build user trust.
What You’ll Need
In order to implement a server-side GTM container, we really only need to set up a couple things:
A server
This is not a free service. We estimate 99% of our clients will pay between $20-$200/month for a cloud server, depending on which vendor they choose and their website traffic.*
A sub-domain (like ss.yourdomain.com)
This is free, and we can walk you through how to do it!
Conclusion
SSGTM is a powerful tool that can greatly improve your data collection efforts by enhancing the accuracy of data and your control over it. However, it's not a one-size-fits-all solution that will resolve every data collection issue.
If you'd like to explore how SSGTM fits into your overall data strategy or need assistance with implementation, our team is here to help. Contact us today to discuss your specific needs.