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Demystifying S2S tracking

The difference between server-side tracking and first-party tracking. There are more options than you think.

What are server-to-server (S2S) and first-party tracking?

Server-side tracking is the opposite of client-side tracking. It means the tracking tools don’t collect data directly in the browser (client). Instead, data is passed to them from another web server (Server-to-server). In most cases, this web server relies on a unified client-side data collection before it can forward all relevant data to the tracking services.

First-party tracking or first-party domain tracking refers to the (sub-)domain used for tracking. This can be a subdomain of the tool provider (3rd party) or a subdomain of the advertiser’s marketing domain. When advertisers switch to S2S tracking, this typically includes a switch to first-party tracking.

The main benefits

  • Server-side tracking gives advertisers more control over the tracked data.
    This has become increasingly important as legislation has become stricter, and website owners need to take more responsibility for tracking their pages.
  • A potential reduction in page loading times is another benefit. However, the technical setup significantly impacts this, so this advantage isn’t always realized.
  • Some market players highlight benefits such as simpler data enrichment with CRM data, more extensive data collection without legal restrictions, and clear data ownership. But, these are not 100% true.
  • In the case of the Safari browser, server-to-server tracking – if set up correctly – can also lead to better data quality driven by longer cookie lifetimes.
  • First-party tracking mainly improves data quality.
    Advertisers will suffer less from the browser’s cookie limitations and get better customer journey data. This leads to better data for analysis, attribution, basket protection features, etc.
    Advertisers also benefit from less untracked traffic by bypassing ad blockers.

Why you must be thinking about server-side tracking now

The pressure is on advertisers to modify their tracking, and this will increase in 2023.

  1. Advertisers have to take responsibility for all tracking
    Previously, many websites contained a considerable number of 3rd party scripts. Often marketing departments weren’t aware of all tracked data and data streams. As advertisers are now responsible for all tracking, they must take action to avoid the risk of fines and negative publicity. In many companies, a new stakeholder has joined tracking projects to make these changes happen: IT security.
  2. Browsers are rejecting third-party trackers and rewarding first-party approaches
    In 2017 the market saw Apple’s first wave of ITP for Safari. In 2022 Firefox made cookie blocking a default setting. Even Google will only support third-party cookies until 2024. There’s great pressure on advertisers to take action now to be prepared for the future.

What are the typical approaches?

To understand the different new approaches, you need to consider the data flow of typical client-side tracking with direct transmission from a user’s browser to the individual tools.

Option A: Client-side tracking with first-party domains

The easiest way for advertisers to benefit from first-party tracking is to take a tool-wide approach. Exactag and other service providers offer their service with first-party tracking domains. Under this scenario, tracking requests are sent to tool-specific servers working with a 1st party domain. This approach doesn’t reduce page loading times but will boost data quality.

But advertisers must be careful. In the future, you must avoid CNAME cloaking to ensure that browsers will not limit cookie lifetime for this approach. Our team will happily explain how CNAME, A-Record, and other options work.

Option B: Tool-wide server-side tracking

To also benefit from server-side tracking, advertisers can choose a tool-wide approach. Many providers allow advertisers to (partially) send their data S2S. In some cases, they even offer servers that can handle server-side tasks. Of course, this forwarding can also be handled by existing internal servers. Typically this implementation includes 1st party domain tracking.

Option C: Unified server-side tracking

To maximize the advertiser’s control over tracked data and avoid redundant data collection, advertisers can integrate data collection. Here, a single distribution server is responsible for data collection. This server then provides all servers with the relevant input.

Although this approach sounds attractive for advertisers, especially smaller ones, you must be aware of its impact. Setting up and maintaining this infrastructure requires great effort: every service has data requirements, and the volume of clicks and ad impressions can be huge.

Due to these challenges, advertisers may prefer to use a third-party service for unified tracking instead of building their own, although outsourcing will reduce the advertiser’s control. Nevertheless, it requires some effort to configure a unified data collection together with a service-specific forwarding of data. Exactag has worked together with tools like Jentis and Tealium to build connectors that make it easier to configure our data collection using their server-side technologies.

What server-side tracking won’t solve

Unfortunately, server-side tracking isn’t the holy grail. While we consider it an essential part of future-proof tracking, don’t believe those who tell you it can solve the following issues.

  • Consent (GDPR)
    It doesn’t matter whether you collect PII client- or server-side. You need the user’s consent.
  • Cookies
    If you want to track users across sessions, you need cookies or similar solutions. With server-side tracking, you can reduce the number of cookies, but you won’t get rid of them. This is why Exactag developed a solution for anonymous tracking of granular data.
  • Documentation
    Advertisers must explain their tracking to users and, if requested, the authorities. In the case of server-side tracking, less information is visible in the browser. This is where the advertiser must provide additional information to ensure transparency.

What to do next?

At Exactag, we support all scenarios. Ultimately, these approaches will enhance your future data quality and positively impact your performance measurement. Attribution will particularly benefit, as complete tracking leads to better pattern recognition. Of course, we are more than happy to discuss your requirements so you can plan and set up the most efficient solution for your business. Just get in touch.