Server-side tags are more critical — and simple — than ever

Server-side tag management helps to address some of the most pressing challenges faced by marketers today, including Google’s oncoming deprecation of third-party cookies, evolving consumer privacy regulations and customer sentiment surrounding transparency and data collection. Yet many organizations cannot imagine a world without client-side tags. Why?

Simply put: Server-side tag management has a bad reputation.

Misconceptions about server-side tagging are commonplace. Some marketers perceive it as overly complex or prohibitively expensive, while others are unsure of its benefits compared to traditional client-side methods. Unfortunately, these misunderstandings result in poor user experiences, inferior data quality and steep compliance fines.

Let’s review some persistent myths that keep organizations from implementing server-side tags and uncover why this method of tagging is more critical now than ever.

MYTH 1: Server-side tagging is too technical to implement.

Compared to client-side tagging, which requires users to add HTML or JavaScript to a webpage via their content management system (CMS) or tag manager, server-side tagging might initially seem “too technically complex” to implement. It’s true that server-side tagging often requires more developer input and extended hosting capabilities than traditional tagging methods. However, its complexity is often overstated.

While the initial setup of server-side tagging may require technical knowledge, recent technological advancements and user-friendly interfaces have made it more accessible. For instance, many third-party providers now offer platforms that abstract much of the complexity involved in resource management. These platforms allow marketers to directly interface with server-side tagging systems without relying heavily on developers and IT teams. Thus, they can more efficiently manage event volumes and gain deeper insights into consumer behavior.

Furthermore, many service providers offer comprehensive support and documentation to assist with the setup, making implementation feasible for teams without extensive technical expertise.

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MYTH 2: Server-side tagging complicates reporting structures and can jeopardize robust data governance.

Server-side tagging centralizes control over consumer data collection and processing, ensuring consistency and accuracy across various channels and stakeholders. When organizations host their consumers’ data, they can more reliably guarantee the accuracy of said data. Furthermore, organizations relying on server-side tagging can place stronger protections on consumer data, ensuring it remains compliant and protected.

Yet many marketing and advertising leaders fear the change management process for server-side tagging. They may be hesitant to share control of consumer data with IT or engineering teams. While this internal friction may be a hiccup during the adoption process, it should never prohibit an organization from moving server-side altogether. The bottom line is that server-side tagging improves marketing and engineering outcomes.

As previously mentioned, the server-side tag management market has shifted dramatically in the past decade. Since Google first announced the death of cookies in 2020, we’ve seen a significant increase in demand for server-side tagging solutions on the marketing side. Consequently, low-code and no-code vendors have stepped in to democratize the tag management process. These solutions enable marketing teams to manage and run tag managers with minimal technical expertise, leveling the playing field. Meanwhile, engineering teams can use these platforms to hit KPIs related to webpage performance. That’s a win-win situation for the entire organization.

MYTH 3: Server-side tagging is expensive.

Cost is perhaps the most challenging hurdle to achieving buy-in for server-side tagging adoption. Legacy, client-side tagging via Google Tag Manager is 100% free — a difficult price to beat. But I challenge marketing and advertising leaders to consider the cash they leave on the table if they don’t adopt server-side tagging.

Client-side tagging may incur several hidden costs, including:

1. Data quality issues.

As of Q3 2023, 912 million internet users rely on ad blockers. These engines, along with privacy-focused browsers, make client-side tagging challenging to rely on. Adblockers interrupt client-side tags and lead to inaccurate and incomplete data collection. Furthermore, client-side tagging systems can lose consumer data entirely if a user navigates away from a page before tags have fully loaded or executed.

2. Performance and SEO hits.

The HTML and JavaScript required by client-side tagging can delay webpage load times, negatively affecting user experience (UX) and SEO. Sluggishness is problematic given that many digital shoppers expect superior mobile and web experiences. In fact, many consumers navigate away from particularly troublesome sites in favor of quicker options. B2B sites with 1-second load times experience conversation rates 5x higher than competitors with 10-second load times.

3. Security and privacy risks.

Compliance with regulations like the General Data Protection Regulation (GDPR) and the California Consumer Protection Act (CCPA) requires robust consent enforcement and data handling policies. However, client-side tagging makes compliance trickier because it delays the binding of consumer preferences and consumer data. Furthermore, client-side tagging opens the door to unintentional data misalignment and inappropriate data-sharing through relationships with third-party vendors.
Meanwhile, certain server-side tagging providers enable consent enforcement at the moment of collection, ensuring that consumer preferences are respected even as first-party data is ethically shared with partners.

Google will eventually phase out all third-party cookies. At this time – whenever it may be — early server-side tagging adopters will enjoy significant benefits, including greater flexibility and control, enhanced marketing and analytics capabilities, and enhanced compliance protocols. These improvements present incredible long-term ROI and should be weighed when considering a transition from client-side tagging.