With users’ increasing need for privacy compliance and third-party cookies crumbling under regulatory pressures, companies are looking for new ways to handle first-party data collection and management. In fact, 54 % of marketers’ companies looking for alternatives for third-party cookies are considering collecting first-party data. The goal is to be able to maintain data reliability, ensuring accurate tracking and minimizing potential loss of data.

Among different emerging solutions that help companies with gathering and managing data while remaining compliant, server-side tracking is an approach that has gained attention lately. Server-side tracking offers an alternative to traditional tracking mechanisms, with the potential to resolve various privacy and performance limitations of client-side tracking methods. But what is this method actually about and what kind of benefits does it offer for businesses?

In this article, we will look into the basis of server-side tracking, explain how it differentiates from the more traditional client-side tracking. We will also share the advantages of a server-side method for forward-thinking organizations.

 

CONTENT

 

What is server-side tracking?

Server-side tracking is a method where the visitors’ data on a digital platform, for example a website, is collected by a server. The server processes the data and sends it safely to third party services, analytics platforms or databases. In the server-side tracking approach, you can imagine the server as a transporter, taking users’ data to the desired third-party destinations, allowing better control on data processing and compliance.

Server-side tracking is generally capable of reducing the impact of ad blockers as the data is sent straight from the server to the desired endpoints, rather than fully counting on scripts or data collection on browsers, which typically face the blockers. The method is still not airtight – many ad blockers have strategies to recognize and block data tracking attempts. Often discussed alongside client-side tracking, server-side tracking offers several advantages compared to the more traditional client-side way, including easier tracking, better control over data, and compliance in privacy.

Server-side tracking and server-side tagging – how do these differ?

When it comes to server-side tracking, you often hear talk about both tracking and tagging. In essence, server-side tracking is usually used to describe the overall strategy or process of data collection and management on a server. On the other hand, server-side tagging is specifically about how individual tracking tags are handled, modified, and sent to desired destinations.

Related reading: First-party data strategy: trends and tips

 

What is the difference between server-side tracking and client-side tracking?

Server-side and client-side tracking both aim to collect valuable user interaction data, but they differ significantly in their approach and execution.
Where client-side tracking relies on the user’s browser with data collection and forwarding, server-side tracking lets the server to run these tasks, which covers it better in relation to ad blockers and tracking preventions.

How do these data collection methods differ?

Client-side tracking: When a user interacts with your website, a script activates on the browser and starts collecting data about the user’s activities, such as page views, scrolls, and clicks (for example, tracking which product category a user checks out in your online store). After the collection, the data is transferred to desired end points.

Server-side tracking: When a user interacts with your website, their browser sends requests to your server (for example, HTPP or API requests). The server processes these requests, collects relevant data, and possibly enriches it with existing data (for example, combining user interaction data with historical purchase data). After this the server transfers this data safely to desired end points.

 

What are the disadvantages of client-side tracking?

While on paper it may appear that these are just two different ways of collecting data, there is a reason why server-side tracking has received increasing attention. With today’s changes in the digital environment, traditional client-side tracking faces many different challenges, that include:

  • Weaker data reliability and accessibility: due to 25 % of adults worldwide using ad blockers and tracking preventions on web browsers, it’s more difficult to collect and get accurate data.
  • Stumbling blocks in performance: Tags can cause your website to load slower and cause negative impact on user experience and SEO performance.
  • Compliance and users’ privacy: tags pose a risk of security flaws and unintended information leaks.

Next, let’s look at how server-side tracking addresses these weaknesses of client-side tracking and provides additional benefits as well.

Related reading: Data privacy compliance: surviving in a privacy-first world

 

Benefits of server-side tracking

As mentioned, server-side tracking tackles many client-side tracking limitations, while offering advantages for data collection and analysis:

  • More accurate data: Fewer restrictions from ad blockers and tracking preventions make it easier to collect data in a more accurate way.
  • More control of data: With the server in place, you get to choose what data you want to track and what to do with it, whether it’s about data enrichment, anonymization, sending to desired destinations or deciding who to share it with.
  • More secure: The capacity to collect and manage data on the server side equips you with better security and lowers the possibilities of data breaches. It also enables easier compliance with GDPR.
  • Better website performance: Compared to client-side tracking, there are fewer scripts to burden the website with, enhancing user experience with faster browsing.
  • Better preparing for the future: Ensure your competitiveness with server-side tracking as a part of your first-party data strategy.

 

What are the challenges of server-side tracking?

While server-side tracking offers many advantages, there are also some aspects that are important to be aware of when considering the implementation:

  • Ensuring compliance: While server-side tracking will in principle help you with privacy compliance, you must remember to respect the consent of your users and comply with the law.
  • Required expertise: Implementing server-side tracking can be tricky, as setting up the system and server configuration demand technical knowledge that you might not have in your company.
  • Higher cost: In relation to required expertise associated with the implementation and maintenance, server-side tracking requires more funds compared to client-side tracking.

Related reading: Privacy Sandbox update: What does it mean?

 

How Vaimo can help

In the current evolving environment, the benefits of server-side tracking surpass the challenges of client-side tracking, providing businesses with greater control over their data in a compliant way and without compromising website performance. In addition, this approach supports your CDP in collecting first-party data and building a robust strategy as third-party cookies fade away.

Would you like to have a better understanding of your customer data, improve your data management, and optimize the customer journey? Our free CDP ebook covers it all!

Get your copy »