Key Benefits of Server-Side Tracking for Marketers

Server-side tracking was not invented yesterday, and most people involved have at least a general idea of it. However, the question arises of how to implement it in practice and what to expect.

In this article, we will discuss what marketers can gain from using server-side tracking and how they can benefit from it. Let’s find out together!

What is Server-Side Tracking?

Tracking is often viewed as something all marketologists were born for. You use it every day at work and are used to setting it up via web Google Tag Manager (GTM). However, a new concept was released in 2020 — server-side GTM, which introduced the idea of moving all data processing to the server and enormously boosted the whole concept of server-side tracking.

Since then, technology has been developing and improving non-stop, bringing us to where we are today. Server-side tracking slowly pushes out client-side one. It has moved all the data processing to the server’s side, thus increasing data security, accuracy, and effectiveness.

At that point, you might say that the topic is already covered, the benefits are clear, and there is no need to read further. We have many more interesting things to tell you about server-side tagging and tracking and why it is worth your while.

Additional reading: “Digital Marketing Checklist: 7 Considerations”

Benefits of Server-Side Tracking for Marketers

The list of server-side tracking benefits can be long enough for a separate landing page. That’s why we selected only the main cornerstones that may change your mind and tip the scales in favor of named technology.

Cookie Persistence & Extended Lifespan

To begin with, let’s define what a cookie in terms of internet marketing is. You may claim that it is nonsense and everyone involved knows what it is. However, pause from reading, take a piece of paper, and write a definition of the internet cookie in 3 seconds.

It is normal for marketers to have only an abstract understanding of cookies as they analyze them but do not set them up. However, we must define them to understand why long-lasting cookies are important and how they relate to server-side tracking.

Now that we know the basics let’s explore the topic further. There are two types of cookies: first-party and third-party.

First-party cookies are created by the website visited and used only on that website. On the other hand, third-party cookies are small text files created by companies that may be shared all over the Internet across multiple websites, even without your proper consent.

Which type does seem preferable to you?

Finally, we are returning to server-side tracking and its connection to this story. There are several important aspects.

• Browsers often limit how long cookies can exist, narrowing the time gap when this data can be analyzed. Server-side tracking, in turn, sets up the cookies via the server (not by JavaScript, as usual), allowing them to exist longer despite the local browser restrictions.
• First-party cookies are generally considered more privacy-friendly, but they require proper use and management for analytics and marketing. Server-side tracking can be set up to anonymize personal data and manage all required consents before data processing, making the best use of these “browser stickers”.
• This type of tracking guarantees more reliable and precise tracking results. It is possible because blocking programs usually focus on scripts being executed on the client’s side, which is not true with server-side tracking (it’s literally in its name!).

WoodUp, a Scandinavian acoustic panel manufacturer, experienced a 62% increase in measured revenue after setting up Stape’s server-side tracking infrastructure and using it for GA4, Meta, Snapchat CAPI, TikTok, and Pinterest. Moreover, it resulted in a 27% increase in the number of sessions and a 56% increase in conversions. Overall, this impressive and inspiring result proves the effectiveness of server-side tracking.

Bypassing of Ad Blockers & Tracking Restrictions

People often install or turn on ad blockers in their browsers simply to get rid of irritating pop-ups.

However, there is something ordinary users do not know about ad blockers: they prevent questionable and suspicious data collection by blocking known tracking scripts. Several reasons exist for this.

1. Although we live in a world full of laws and regulations, not all are followed. Many websites gather information about visitors without clear consent. Ad blockers do not allow third-party platforms to build extensive user profiles, ignoring all the privacy policies.
2. Many tracking scripts send extra requests, slowing the browser. Ad blockers stop such scripts from executing and improving page load time.
3. Targeted advertising is useful, no doubt. Many internet users benefit from it. However, it often becomes irritating to follow people from one page to another and stay in their line of sight repeatedly. Ad blockers solve this problem by making such ads less intrusive.

Considering everything above, bypassing ad blockers and tracking restrictions sounds fishy, but wait. The key point here is that they help people protect their legal right to personal data privacy. That is exactly what server-side tracking is used for; It turns out that ad blockers and server-side tracking are allies!

Unfortunately, ad blockers have yet to adapt to the new world, where internet users fully control what data they share and with which platforms. Server-side tracking makes the whole process even safer: All the tracked information is sent to a cloud server, and filtered before sharing with analytical platforms. Thus, while we are waiting for ad blockers to modify their “working style”, server-side tracking allows companies and platforms to still receive the data they need, but only if the client on the other side has given their consent.

One of the most impressive examples of how server-side tracking and its ability to bypass blockers helped a company overcome difficulties is the case of Farmasave. It’s a leading Italian pharmaceutical retailer working online, and it had difficulties optimizing its advertising campaigns because ad blockers interfered with marketing attribution.

With the implementation of server-side tracking, the number of GA4 traffic sessions tracked increased by 82%, and the number of conversions from Facebook Ads by 88%. 

Data Filtering & Enrichment

We have already mentioned that all the tracked data is filtered on the server. However, here, we have added enrichment. What is going on? How is the data filtered generally? What is enrichment? For now, it sounds like a cheap marketing move — using louder and more professional language to impress potential customers without any sense. However, is it really the case?

Let’s start with filtering. In fact, it is one of the biggest advantages of server-side tracking. However, we wanted to share it only with those interested in and motivated enough to learn all its aspects in depth. Obviously, filtering in our context is not an empty word. It actually changes the whole process of sending data to analytics and its outcome.

• Companies may implement specific server rules to block bot traffic and season them with IP filtering and user-agent detection.
• Server-side tracking helps companies separate duplicate events and not send them to analytics, guaranteeing more precise analytic results.
• Finally, server-side tracking can be set up (if required) to remove or anonymize personal data before sharing it with third parties (GA4, TikTok, Meta, etc). This ensures compliance with GDPR and CCPA.

All these things become possible because the server mediates between the client and the analytic platform. Now, let’s move to enrichment. There are aspects in which the tracked information can be improved on the server before being sent further.

• The data can be merged with internal databases or CRM (for instance, add the loyalty status and/or purchase history).
• Additional context can be added( for instance, discount code or profit margin for profit reporting on e-commerce).
• User identification can be improved (for instance, using first-party user IDs from a CRM).

LEDWINKEL-Online, a Dutch LED solutions distributor, experienced a 20% increase in the alignment between the GA4 and actual revenue data (resulting in 90% instead of 70%) after setting up Stape’s server-side tracking infrastructure. Moreover, CPA decreased by 23%, and the accuracy rate of the tracking process increased by 95%. Overall, this impressive and inspiring result proves the effectiveness of server-side tracking.

Safer, More Private, and More Effective – What’s Stopping You?

We could ask you if it is enough to switch to server-side tracking, but there is a better, more informative question. Do you have any reasons not to switch to it? 

There were hundreds of cases when companies increased their profits with server-side tracking, and none (we haven’t found any) when it worked oppositely. Considering that nowadays, there are many ways to implement it for a reasonable price, the stars seem to align with your switching to it.