Server-side measurement (tracking) is an increasingly popular topic in web analytics. This measurement approach involves tracking user interactions directly on the server instead of on the client side (the browser) and offers both several advantages and specific challenges. We decided to split the topic into three systematic parts, which we will publish gradually.
In this article we therefore start by looking at how server-side measurement works, what its advantages and limitations are, and we also cover conversion tracking and working with user consents.
How Does Server-Side Measurement Work?
Server-side measurement moves the tracking of interactions from the user's browser to a server, which means that data is collected and processed on the server before it is sent to analytics tools. It can be implemented using server-side Google Tag Manager (GTM) and Google Cloud Platform (GCP).
Data collection 👇
User interactions with the website are sent to a server instead of being sent directly to analytics tools.
Data processing 👇
Your server processes, cleans, filters and, where needed, enriches the data before sending it to analytics platforms.
Data delivery 👇
Exactly the data you have defined is securely sent to the target analytics systems such as Google Analytics, Facebook Pixel or Google Ads.
Advantages of Server-Side Measurement
Accuracy and Data Enrichment
- Data enrichment: Server-side measurement opens up endless possibilities for enriching and cleaning data in real time. When a user makes a purchase, you can load in real time data from company systems that you cannot or do not want to have available on the website (e.g. in the data layer) and pass it securely to the advertising system. You can store the data in several places and work with it as needed.
- Fewer data losses: Data is sent in the so-called first-party context. This approach makes it possible to partially overcome some obstacles of modern measurement, such as ad blockers and similar techniques, which ensures data accuracy that is several percent higher. Data then goes to marketing systems directly from the server, which minimises the risk of data loss in transfer.
- Value-based bidding – bidding on margin: Server-side GTM is for most of our clients the first step towards value-based bidding, that is, towards setting up and optimising campaigns not on the basis of revenue but of profit. The profit calculation can then be delegated to an analytics server, which, based on data from your e-shop, company accounting and other systems, determines the gross profit in real time and sends it to the advertising systems. The details of the profit calculation can differ between implementations, from a percentage calculation for specific product categories to an exact figure based on warehouse prices, overheads, and shipping and payment costs.
- Fewer requests on the browser side: By the very nature of this kind of measurement, where data leaves for the server only once, the number of requests created directly in the user's browser is minimised. In the future we can expect the analytics pixels of individual tools to be gradually reduced, with a full move to server-side measurement. For now the pixels still play a role, mainly in generating and matching the user's identity using cookies.
Improved Data Security
- Control over data: Server-side measurement gives you more control over how data is collected, processed and sent. As the controller of your users' and customers' data, you therefore have full control over the entire process of data collection and processing.
- Encryption: Data can be better protected by encryption in transit between the server and the analytics tools.
Better Overview of Consents
- Centralised management: Server-side GTM can serve as a data distributor for all analytics systems as well as for email and advertising data. This approach makes it easier to comply with data protection laws such as the GDPR. Thanks to logging of all information you also have precise control over what was measured and how.
- Flexibility: Thanks to the graphical interface in the browser you can debug and check how individual data flows and how it has been handled.
Limitations of Server-Side Measurement
- More complex implementation 👉 Implementing server-side measurement requires advanced technical knowledge and server management, so the technical demands can be a challenge for some organisations. It means adopting a new technology and procedures that the organisation may not have used before. Our team, however, handles the integration with ease and will gladly guide you through the implementation on Google Cloud Platform.
- Costs 👉 The cost of running the server depends on the amount of data that flows through the analytics server. You pay only for what you actually use. For small projects, where server-side is used only for measuring transactions (FB Conversions API, Google Ads), the costs are in the order of CZK 1,000 a month, for larger projects (about 10 million hits a month) around CZK 2,500–4,000. For large projects of about 100 million hits a month around CZK 6,000–8,000. The amounts are only indicative, everything depends on the specific implementation and on what data processing takes place on the server. (The requests to the server include not only page_view events, but the total number of events; the figure you see per month, for example, in a tool such as Google Analytics can give you an idea of the possible costs. To determine the operating price it also depends a lot on how many hits are generated per second, that is, whether your website is prone to large spikes in the number of hits and a more robust infrastructure will therefore have to be prepared).
- Long-term maintenance 👉 If you build an ecosystem for server-side measurement, the organisation must expect, as with other server technologies and services, that this ecosystem will have to be maintained and managed. Because everything is built on Google's cloud technologies, a DevOps team can easily take over all the administration. If you do not have such a team, our specialists will take care of the operation.
- Fear of the unknown 👉 For many companies the biggest obstacle and limitation of server-side measurement is that it is something new and they are afraid to invest in the technology. From our point of view, however, we see that companies that implement server-side measurement achieve better results, are more competitive on the market, react faster to change and have their data under control.
- Limited support for some tools and compatibility 👉 Some analytics and marketing tools may not fully support server-side measurement, and this can limit integration options. Gradually, however, there are more and more tools that can be measured via server-side Google Tag Manager, either officially or through community-developed solutions. We currently have fully functional implementations for Zboží.cz, Heureka.cz, Ecomail.cz, Facebook Meta Pixel, TikTok Pixel and other tools.
Server-Side Measurement and Conversion Tracking
Server-side measurement provides a robust solution for tracking conversions on various marketing platforms such as Google Ads and Facebook. This approach can help overcome the measurement accuracy problems caused by the blocking of third-party cookies.
Google Ads 👇
Enhanced Conversions 👉 Server-side measurement allows more accurate tracking of conversions thanks to better collection and transfer of data directly from the server.
Data-driven Attribution 👉 Better data quality allows more accurate conversion attribution models.
Facebook Pixel 👇
Conversions API 👉 Facebook offers the Conversions API, which makes it possible to send conversion data directly from the server, which increases measurement accuracy even when cookies are blocked.
The End of Third-Party Cookies and Server-Side Measurement
With support for third-party cookies coming to an end, server-side measurement becomes a key tool for preserving data quality in web analytics. Third-party cookies were long the cornerstone of tracking users across websites, but their disappearance forces marketing and analytics teams to look for alternative solutions.
Preserving data quality 👇
- Data security 👉 Server-side measurement offers a more secure way of collecting and transferring data without relying on third-party cookies.
- Consistency 👉 It enables consistent measurement across different channels and devices.
Protecting user privacy 👇
- Respecting consents 👉 Server-side measurement allows better, clearer control and respecting of user consents, which is key for complying with data protection laws.
