Server-Side Tracking and GDPR

Written by David Aleksandersen | Oct 1, 2024 10:46:18 AM

Server-side tracking has emerged as a crucial solution for EU-based businesses navigating the complex landscape of data privacy and GDPR compliance. As reported by Usercentrics, this approach offers enhanced control over user data collection and processing, potentially addressing the challenges posed by the phasing out of third-party cookies while maintaining marketing effectiveness within regulatory boundaries.

Transition from Third-Party to First-Party Cookies

The digital marketing landscape is undergoing a significant shift as the industry moves away from third-party cookies towards first-party data collection. This transition is driven by increasing privacy concerns and regulatory pressures, particularly in the EU.

First-party cookies, created by the website itself, are becoming more crucial for optimizing user experience and maintaining essential site functionality.

Unlike third-party cookies, which are set by external domains and used for cross-site tracking, first-party cookies offer more control over data collection and better align with privacy regulations.

Key aspects of this transition include:

Google's planned phase-out of third-party cookies in Chrome by 2025, following similar moves by Safari and Firefox
Increased focus on first-party data collection strategies, such as newsletter signups and interactive content
The rise of server-side tagging, which uses first-party cookies to collect data before sending it to analytics tools, enhancing privacy compliance
A shift towards contextual advertising as an alternative to user profile-based targeting

This move towards first-party data not only addresses privacy concerns but also potentially offers businesses more accurate and valuable insights into their audience's behavior and preferences.

Server-Side Tagging for Enhanced Data Control

Server-side tagging offers businesses enhanced control over data collection and processing, acting as a buffer between users and third-party vendors

This approach allows companies to:

Improve privacy controls by validating, parsing, anonymizing, or blocking HTTP requests before sending data to marketing partners
Enhance website performance by reducing client-side load and minimizing the need for third-party JavaScript libraries
Boost data quality through first-party context data collection, enabling more durable and secure cookies with the HttpOnly flag
Centralize data management, allowing for granular user consent implementation and better compliance with privacy regulations like GDPR

By moving data processing to the server, businesses can better protect sensitive information, improve site speed, and maintain more accurate user tracking while adhering to stringent privacy standards.

GDPR Compliance with Server GTM

Server-side Google Tag Manager (GTM) offers a robust solution for GDPR compliance by providing enhanced control over data collection and processing. It allows businesses to process data on their own servers before sending it to third-party services, enabling better management of personal information and user consent

With server-side GTM, companies can remove or hash personally identifiable information (PII) before transmitting data to external platforms, ensuring compliance with GDPR requirements

Key benefits of using server-side GTM for GDPR compliance include:

Improved data minimization by carefully auditing and controlling the tags deployed
Enhanced ability to respect user consent preferences through integration with consent management platforms
Reduced reliance on client-side cookies, mitigating privacy concerns associated with third-party tracking
Option to self-host GTM, eliminating the need to transfer personal data to Google servers in the USA
Better control over third-party data collection, allowing businesses to specify exactly what information is shared with external services

By leveraging these features, businesses can maintain valuable insights while adhering to GDPR's stringent data protection standards.

Contact us for a chat about how we can help you implement a server-side tracking that complies with GDPR and add full control over your own 1st party cookies.

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