Ever since Google made an unexpected U-turn on its long-awaited plan to ditch third-party cookies on Chrome, server-side tracking has been thrust back into the limelight for online advertisers. A major hot topic in the marketing analytics department, this handy strategy helps businesses side-step many of the issues surrounding cookies and their inevitable demise.
But, with everything so up in the air, it’s been a tricky business to navigate the uncertainty. How and when should advertisers begin to dip their toes into cookie-less attribution? What exactly is server-side tracking? Well, stick with us for all the answers.
In this helpful guide, we’re going to prove to you that it’s not as complicated as it seems at first glance, and by the end of it, you’ll be confident that your business is future-proofed for this new era of advertising. Here are some spoilers.
Skip to:
- The cookie quandary
- What is server-side tracking?
- How it works
- 9 server-side tracking benefits
- How to get started
- Wrap up
The cookie quandary
Before we give you a proper definition of server-side tracking, we ought to provide a bit of context. To understand server-side tracking (or server-side tagging as it is also known), you need to know what cookies are and how they operate.
What are tracking cookies?
As an internet denizen, you might already be familiar with cookies; these bad boys are the small pop-ups or tracking scripts that appear when you visit a website, and for nearly three decades, advertisers have relied on them on the client side.
In essence, cookies are tiny text files that gather data about users’ browsing behaviour across the internet. First-party cookies are stored directly by the website you’re visiting, while third-party cookies are placed by external sources like advertisers to track your activity across multiple sites so they can tailor future encounters to your audience profile.
A dying technology
Cookies sound pretty neat, right? Well, not so much these days.
As we’ve entered the internet privacy era, we’ve seen much stricter online data protection laws being ushered in – GDPR, we’re looking at you! Because of these increased restrictions along with growing consumer awareness, the efficacy of third-party cookies has been seriously watered down.
In response, some browsers such as Safari and Firefox, have already phased out third-party cookies, meaning advertisers can no longer rely on them as a primary method for obtaining audience insights. A growing swathe of users are also undermining cookies through ad blockers, VPNs and privacy-focused browsers.
So, as this tracking method steadily vanishes, businesses will need to explore alternative ways of monitoring consumer behaviour. Which is where innovations like Google’s Privacy Sandbox, with its various features and APIs, and server-side tracking come into play, proffering up more privacy-conscious ways of collecting data and delivering personalised advertising.
Finding new ways of tracking consumers
With third-party cookies firmly on the way out, advertisers have to rethink their PPC strategy. But don’t let this trick you into thinking that cookie-less attribution means saying goodbye to data-driven advertising campaigns.
On the contrary, there are so many alternative attribution techniques that don’t require third parties to get involved on the client side. The main ones are device fingerprinting and server-side tracking, both of which support the consumer’s desire for privacy without depersonalising the ads they see.
So, what exactly is server-side tracking?
Simply put, server-side tracking is the process of obtaining data on a user’s interactions with your website, processing that data on your server, and then transmitting it to a destination server, which is usually a CRM system, ad personalisation tool or analytics platform.
Popular choices are Google Analytics and Cometly, but there is a plethora of software providers out there working in this domain.
How it works
Server-side tagging works by shifting the responsibility of data collection away from the user’s browser to your server. This happens in a few steps, once the process is triggered by someone interacting with your web content.
Normally, it looks something like this:
- The initial data is collected via a tracking script from Google Tag Manager or a pixel you have embedded in the pages you want to track.
- That data is then processed and cleaned up if necessary.
- The information is securely stored.
- Finally, the data is transmitted to the connected marketing and/or analytics platform.
This method ensures that the whole process is more secure, accurate and privacy-focused as the individual user data stays between fewer entities, rather than technology companies and ad agencies selling it to god knows who. The cherry on top? You also have the peace of mind that the data is more qualified and relevant (but more on that later…).
9 server-side tracking benefits to enjoy now the cookie’s crumbled
As we’ve already established, the growing momentum behind first-party data attribution is a direct response to tighter online privacy laws like GDPR. But there’s more to it than that. Let’s break down some of the key benefits of server-side tracking.
1) Greater control
What we love about the various server-side tagging software out there, is the sheer level of personalisation. Far superior to client-side tracking, the grasp on your analytics is much more granular, allowing for better control over your data and richer, higher-quality insights as a result.
2) Bypass ad blockers
Did you know 36% of Brits aged 16-24 use some form of ad-blocking software? With client-side tracking, you could be missing a significant portion of your data or suffer from a big discrepancy in the attribution compared to the reality.
Server-side tracking bypasses these blockers because the data collection happens server-side, rather than the user’s browser, which ensures you’re capturing a fuller picture of your audience’s behaviour, even if they’re using ad-blocking tools.
3) Improved accuracy
Leading on from the previous benefit, by shifting data processing to the server, you can reduce the gaps in data collection caused by cookie-blocking tools, VPNs and other tech your website visitors are using. This leads to more reliable, comprehensive insights, allowing you to breathe a sigh of relief knowing marketing decisions are based on accurate information.
4) Overall stronger performance & reliability
One of the most overlooked benefits of server-side tracking is its positive knock-on effect on website performance. By reducing the volume of HTTP requests, you can speed up your pages’ loading times, therefore reducing your bounce rates and improving your site overall. Paired with the advantages mentioned thus far, what you get is a far more reliable, robust tracking system.
5) Cost-effective targeting
When your tracking is on point, you’re not just gathering more accurate data – you’re also improving your cost-effectiveness, and PPC budget efficiency particularly as Google Ads are so algorithmically driven. Server-side tracking can save you money in the long run by ensuring your budgets are allocated to the right channels and activities from SEO to PPC management. Without the correct data, you could end up pouring money into underperforming channels, leading to misallocated funds, inefficient campaign optimisation and inaccurate ROI measurement.
For example, imagine running a brand awareness campaign for an ecommerce store. Under traditional attribution models, this campaign might seem like a failure since it doesn’t directly drive conversions. However, in reality, it’s the campaign that got your audience interested and primed for a final purchase. With server-side tagging, you can track these interactions accurately, ensuring your marketing spend is going to the right places and you’re not missing out on key opportunities.
This also ties into the broader strategy of multichannel retailing, where seamless integration of data across platforms ensures you’re capturing the right customer touchpoints. By refining your tracking and optimising spend, you can ensure that all your channels are working together effectively, which is key for retail marketing tactics that deliver tangible results.
6) Optimal privacy for your website users
It would be remiss of us not to mention how server-side tracking benefits from the enhanced privacy it offers your website users. By moving the data collection to the server, you reduce the exposure of personal data to client-side vulnerabilities. For example, third-party cookies placed on users’ browsers can be intercepted or manipulated, whereas data processed server-side is handled more securely and anonymously.
7) Simplified compliance
Managing consent will be much easier once you switch to server-side tagging. With the enforcement of Google’s Consent Mode V2, advertisers who fail to obtain explicit consent for cookies face are probably going to face penalties.
However, server-side tagging simplifies the process; by reducing your reliance on cookies, particularly third-party ones, you can offer greater control over user privacy and store the information more securely. Since the data is anonymised before being processed, it’s also less susceptible to breaches or general misuse, making compliance with privacy regulations, like GDPR, far more straightforward.
8) A better alternative to client-side tracking
Unlike traditional client-side tracking, server-side tagging doesn’t rely on placing cookies on a user’s device to gather that useful intel. This means that you don’t have to concern yourself with the same downsides; with the decline of cookies, client-side tracking is now missing large amounts of traffic – and even more critically, conversions.
This disruption can throw off conversion-reliant algorithms like those used in Google Ads and make strategising for your next digital marketing campaigns a nightmare. The solution? It’s staring you right in the face – server-side tracking!
9) Futureproofing for inevitable industry change
Even though Google has delayed the phase-out of third-party cookies in Chrome while they address regulatory challenges from CAM, it’s still crucial to prepare for this inevitable change.
Chrome, with its 68% global market share, accounts for millions of users. When the cookie depreciation moves forward with Chrome, you’ll need to have strategies in place to account for these users. So, the earlier you start preparing, the better protected your data attribution will be. After all, we can’t deny it, it’s always better to futureproof sooner rather than later.
How to get started with server-side tracking
Getting started with server-side tracking might seem like a daunting prospect, but really it’s much simpler than it seems, especially with tools like Matomo, Plausible and Cometly at hand. These platforms integrate really well with Google Tag Manager, enabling you to implement server-side tracking on your website without much hassle.
Here’s how you can start:
- Choose your analytics tool: Platforms like Matomo and Plausible are great for beginners. These tools are designed to provide intuitive interfaces for tracking user activity without relying on cookies.
- Server set-up: You’ll need to implement server-side tracking scripts and connect them to your website via Google Tag Manager, a plugin/extension or a pixel added to your website . This will direct your tracking data to your server for processing before forwarding it to external platforms.
- Test and optimise: Once established, test your system to ensure it’s well-oiled, collecting and sending the right data correctly. Here, savvy advertisers will have their own back by regularly monitoring the data flow to check they’re hitting the mark on compliance, and don’t forget to optimise your setup for accuracy and performance too!
- Consult an expert: If the technicalities still feel overwhelming, it might be a good idea to consult a digital marketing agency with experience in server-side tracking. Their expertise can ensure smooth implementation and allow you to focus your energy on growing your clientele and increasing those all-important sales.
Key takeaways for businesses
Whoa, we just covered a lot of stuff! So, I wouldn’t blame you if it feels like your head is starting to spin. To make sure you remember at least the important bits, here’s a handy wrap-up of the key information to take away with you.
- Third-party cookies, the small text files that track users’ behaviour across the web to deliver personalised ads, are on the brink of disappearing.
- While many browsers (e.g., Safari & Firefox) have eliminated 3rd party cookies, Google once again delayed their removal in 2024 to the following year to address regulators’ concerns.
- In the meantime, marketers should adopt cookie-less data attribution methods like server-side tracking to avoid unnecessary disruption to their online marketing campaigns and keep targeting accurate.
- Server-side tagging, AKA cloud delivery, is a way of tracking and delivering data via your website – the information is sent to your web server first before being transferred to the tracking platform of your choice.
- Server-side tagging has many benefits, from its privacy-friendliness to its accurate, easy-to-control data collection and monitoring.
- There are many server side tagging software available with easy set-up and user-friendly display; however, if you’re struggling with the transition, it’s a good idea to reach out to a digital marketing agency with experience in this area.
Enrich your marketing with accurate, data-driven insights
The bottom line is that if you’re still cookie-reliant for your marketing insights, you’re only getting a snapshot of your audience’s online behaviour. To stay ahead of the curve and grab that full picture, you’re going to need to step into the world of cookie-less, first-party data collection. So, what are you waiting for? It’s time to kickstart your server-side tracking journey today.
