Protecting user privacy isn’t just good practice—it’s the law. For businesses operating in the EU or dealing with EU citizens, GDPR compliance is non-negotiable. The General Data Protection Regulation (GDPR) requires companies to manage personal data responsibly, but staying compliant can feel like navigating a maze.

That’s where server-side tracking steps in. Unlike traditional client-side methods, server-side tracking shifts data collection to your server, giving you tighter control and security. It’s a powerful way to ensure compliance without sacrificing the insights you need to grow your business.

In this blog, we will explain how server-side tracking helps companies follow GDPR rules, technical strategies and the implementation of server-side tracking to protect user privacy. It’s a way to have a safe and legal digital strategy.

To start with, let’s understand more about GDPR and its importance.

What is GDPR, and Why is it Important?

The General Data Protection Regulation (GDPR), which was introduced by the European Union in 2018, is a detailed set of rules that govern the collecting, processing, and storage of personal information. Its mission is to defend people’s privacy and rights, particularly in the context of internet activity.

Some core principles of GDPR include:

• Data minimization: Only collect necessary data.
• Transparency: Inform users about data collection practices.
• Data subject rights: Users must have control over their data, including the right to access, correct, and delete it.
• Consent: Companies must obtain explicit consent from users before collecting their data.

Non-compliance with GDPR can lead to hefty fines and damage to businesses’ brand reputations. Therefore, marketing teams must urgently adopt privacy-conscious technologies that meet these requirements, such as those offered by CustomerLabs, a GDPR and CCPA compliant no-code 1PD Ops platform that streamlines data management while ensuring compliance. 

With GDPR reshaping data management practices, businesses must rethink their approach to website tracking to avoid running afoul of these regulations.

Next, we’ll discuss the profound impact of GDPR on website tracking.

Impact of GDPR on Website Tracking

The GDPR has significantly transformed the way businesses handle user data, especially in the realm of website tracking. Websites must now obtain explicit consent from users before collecting their data. This means you can’t just automatically track user behavior without their permission.

• Consent Management: Websites must use tools like Google Tag Manager’s Consent Mode to only activate tracking when users give consent.
• Clear Cookie Notices: Websites need to have clear and concise notices explaining what data is being collected and why.
• Explicit Consent for Marketing Emails: You can only send marketing emails to users who have explicitly opted in.

By complying with GDPR, websites can protect user privacy and avoid hefty fines. It also builds trust with users, leading to better user experiences and increased customer loyalty.

While GDPR aims to give users more control over their data, it has introduced several challenges for traditional client-side tracking methods that rely heavily on cookies and other tracking technologies. 

Here are some of the challenges businesses face with client-side tracking under GDPR and the necessity of consent and data protection in modern tracking practices.

Challenges with Traditional Client-Side Tracking Under GDPR

Client-side tracking refers to the process of loading tracking scripts and cookies directly on a user’s browser when they visit a website. 

Businesses have widely used this method to collect data on user interactions, such as page views, clicks, and conversions. 

However, GDPR poses significant challenges to this traditional tracking approach:

Increased Regulation on Cookies:

One of the primary concerns of GDPR is the use of cookies. 

Cookies are small text files that track user activity on a website. Under GDPR, businesses must obtain explicit consent from users before placing cookies on their devices. 

This requirement creates a barrier to traditional client-side tracking, which often relies on third-party cookies to collect and share data for advertising and analytics.

Lack of User Control:

GDPR gives individuals the right to control their data, including the right to access, correct, or delete it. 

Traditional client-side tracking methods often collect a large amount of user data without giving users adequate control over how it’s used. 

With third-party tracking technologies involved, users may not be fully aware of all the data being collected, which contradicts the principles of transparency and user consent outlined by GDPR.

Data Retention Issues:

GDPR requires that businesses only store personal data for as long as necessary. 

However, traditional client-side tracking practices often result in long-term data retention, especially when cookies are used. 

If businesses are not properly managing their data retention policies, this can lead to potential non-compliance, exposing them to fines and reputational damage.

Third-Party Data Sharing Risks:

Traditional tracking often involves sharing user data with third-party services like ad networks, social media platforms, and analytics providers. 

Under GDPR, businesses must ensure that these third parties are compliant with the regulation, which can be difficult to manage. 

Data shared with non-compliant third parties may lead to legal penalties or breaches of trust.

To address the limitations of traditional client-side tracking, many businesses are turning to more GDPR-compliant alternatives. One such solution involves server-side tracking, which allows businesses to better control data processing, improve accuracy, and reduce reliance on cookies. For example, solutions like CustomerLabs 1PD Ops offer businesses a way to implement server-side tracking, overcoming the challenges of traditional methods while ensuring full GDPR compliance.

By adopting such solutions, businesses can safeguard user data, stay compliant with GDPR, and enhance their ability to track conversions effectively without compromising privacy.

Now, let’s take a closer look at what server-side tracking is and how it works.

What is Server-Side Tracking?

Server-side tracking is a method of data collection where the tracking code is executed on the server instead of the user’s browser. 

Unlike traditional client-side tracking, where data is processed by the browser and sent to third-party services, server-side tracking allows businesses to control and secure data before transmitting it to external systems.

This approach helps businesses reduce dependency on cookies, provides better control over data privacy, and ensures that data collection and processing are done in a more secure and compliant manner.

Moreover, businesses can significantly enhance their ability to comply with privacy regulations. Let’s explore the benefits of server-side tracking specifically in the context of GDPR compliance.

Benefits of Server-Side Tracking for GDPR Compliance

Adopting server-side tracking offers several advantages when it comes to maintaining GDPR compliance:

• Reducing the Risk of Data Leakage: Since all data is processed server-side, businesses can control what information is shared with third parties. 

This reduces the risk of data being leaked through insecure third-party cookies or other vulnerable client-side methods.

• Enhanced Data Security: Server-side tracking reduces exposure to data breaches by limiting the number of parties with access to user data. 

Instead of data being transmitted across multiple platforms, it remains securely on the server.

• Reduced Reliance on Third-Party Cookies: With server-side tracking, businesses no longer rely on third-party cookies to track user behavior. 

This allows businesses to bypass many of the limitations imposed by cookie restrictions and build more sustainable, privacy-conscious tracking methods.

• Improved Accuracy of Data Collection: Server-side tracking also improves the accuracy of data collection. 

By eliminating issues such as ad-blocking, JavaScript errors, or cookie consent denial, businesses can gather more consistent and reliable data for analysis and optimization.

• Importance of Custom Subdomain Setup: A custom subdomain setup for server-side tracking is essential for ensuring that cookies are set on your domain, rather than relying on third-party domains. 

This is especially important for bypassing restrictions like Intelligent Tracking Prevention (ITP), which limits the ability to set cookies in cross-site contexts. 

A custom subdomain also allows businesses to implement GTM (Google Tag Manager) server-side tagging effectively, ensuring that cookie-related issues are mitigated and compliance with privacy laws is maintained. 

With a solid foundation of server-side tracking in compliance with GDPR, let’s explore the technical strategies and continuous monitoring that ensure robust GDPR compliance while optimizing data security and privacy

Technical Strategies for Server-Side GDPR Compliance

As businesses increasingly focus on GDPR compliance, using server-side tracking is an effective solution to safeguard user data and avoid compliance issues. 

We’ll break down three key technical strategies for server-side tracking that will help you stay compliant with GDPR:

Setting up Server-Side Containers and Data Routing

• Isolated Environments: Create separate, secure server-side containers for different data processing tasks. This isolation minimizes the risk of unauthorized access and data breaches.
• Data Minimization: Implement strict data minimization principles. Only collect and process the necessary data to fulfill specific purposes.
• Data Retention Policies: Establish clear data retention policies and regularly delete unnecessary data to comply with GDPR’s data minimization requirements.
• Secure Data Routing: Use secure protocols like HTTPS to encrypt data transmission between servers and third-party services.
• Firewall and Intrusion Detection Systems: Deploy robust security measures, including firewalls and intrusion detection systems, to protect server-side infrastructure.

Transmitting Data While Ensuring GDPR Compliance

• Anonymization and Pseudonymization: Anonymize or pseudonymize personal data before transmitting it to third-party services. This involves removing personally identifiable information or replacing it with unique identifiers.
• Consent Management: Obtain explicit, informed consent from users for data processing. Explain how their data will be used clearly and concisely.
• Data Transfer Agreements (DTAs): Establish DTAs with third-party service providers to ensure they comply with GDPR requirements.
• Data Subject Rights: Implement procedures to handle data subject rights, such as access, rectification, erasure, and data portability.
• Data Breach Notification: Establish a robust data breach notification process to promptly report any breaches to the relevant authorities and affected individuals.

3. Hashing PII and Securing Data Transfers

• Hashing PII: Hashing personally identifiable information (PII) renders it irreversible. This can help safeguard sensitive data from unauthorized access.
• Encryption: Encrypt data both at rest & in transit to further enhance security.
• Secure Key Management: Implement secure key management practices to protect encryption keys.
• Regular Security Audits: Conduct regular security audits to identify & address potential vulnerabilities.

These strategies will help you manage data safely, ensuring privacy and security while meeting GDPR requirements.

As businesses look to improve their GDPR compliance, CustomerLabs offers a suite of server-side tracking tools and strategies to ensure privacy and security.

Continuous GDPR Monitoring and Improvement

Achieving GDPR compliance is not a one-time task; it needs ongoing efforts to ensure that your business remains compliant as regulations evolve and your data collection practices adapt. 

Continuous monitoring and improvement are crucial to avoiding fines, protecting customer privacy, and maintaining trust. 

Here’s how you can stay on top of GDPR compliance:

• Regular Compliance Audits: Perform regular compliance audits to assess adherence to GDPR principles.
• Stay Updated on Regulations: Stay informed about the latest GDPR and updates to ensure continuous compliance.
• Data Protection Impact Assessments (DPIAs): Conduct DPIAs for high-risk data processing activities to identify and mitigate potential risks.
• Employee Training: Provide regular training to employees on GDPR compliance and data protection best practices.
• Third-Party Vendor Assessment: Assess the GDPR compliance of third-party vendors and service providers.
• Incident Response Plan: Have a well-defined incident response plan to address data breaches and other security incidents.

After establishing GDPR server-side strategies, it’s essential to dive deeper into specific tools like Server-Side GTM, ensuring they align with GDPR requirements for secure and compliant data handling.

Server Side GTM in Compliance with GDPR: Key Considerations

One of the GDPR’s central tenets is the requirement for explicit consent before businesses collect and process user data. 

This has a profound impact on how tracking technologies are implemented on websites. 

Here are the key considerations for ensuring consent and data protection are respected:

Obtaining Explicit Consent:

Under GDPR, businesses must obtain explicit consent from users before collecting data. 

This means a simple opt-in is not enough; users must actively agree to the tracking methods being used. 

Websites must display clear, understandable consent notices that explain how the data will be used and who will have access to it. 

The user must also have the option to withdraw consent at any time, which introduces the challenge of managing consent preferences across multiple tracking tools.

Granular Consent:

GDPR also requires that users choose which types of data they consent to be collected. For example, users may agree to allow analytics cookies but opt out of advertising cookies. 

To meet these requirements, businesses need to implement granular consent mechanisms, ensuring that users have full control over the data they share. 

This introduces additional complexity to website tracking, as businesses must manage multiple consent layers for various types of cookies and trackers.

Data Protection by Design & by Default:

GDPR mandates that businesses implement data protection by design and by default. This means privacy must be integrated into the design of tracking systems and processes. 

Instead of collecting excessive data upfront, businesses must ensure that only the data necessary for the intended purpose is collected and stored. 

This requires a shift away from traditional client-side tracking, which often collects large amounts of data by default, to more privacy-conscious methods that focus on minimizing data collection.

Transparency and User Rights:

GDPR requires businesses to be transparent about their data collection practices. 

This involves alerting users about the types of data gathered, the purpose of the collection, the length of time the data will be retained, and their data rights. 

With client-side tracking, this transparency can be difficult to achieve, especially when data is shared with multiple third parties. 

Businesses must update privacy policies and tracking notices to ensure full transparency and help users make informed choices.

Secure Data Storage and Processing:

GDPR also emphasizes the security of personal data. 

Businesses are required to implement appropriate technical & organizational measures to protect data from unauthorized access, loss, or corruption. 

Traditional client-side tracking often involves sending data through various third parties, creating potential security risks. 

Server-side tracking solutions, on the other hand, allow businesses to maintain more control over the data, reducing the risk of breaches and unauthorized access.

Setting up Server-Side Google Tag Manager (GTM) requires careful attention to GDPR compliance, ensuring that data privacy and protection remain at the forefront of your tracking strategy. Let’s explore the easy GTM integration with quick and simple steps.

Steps to Integrate Google Tag Manager (GTM) with CustomerLabs 1PD Ops

To enhance GDPR compliance with server-side tracking, integrating advanced tools like Google Tag Manager (GTM) with a  1PD Ops such as CustomerLabs takes your tracking strategy to the next level. 

This integration allows you to collect and process user data on your server while still adhering to GDPR principles like user consent, data minimization, and privacy rights. 

Here’s how to integrate Google Tag Manager (GTM) with CustomerLabs 1PD Ops to streamline data management while maintaining compliance:

Prepare Your Environment

Before diving into the integration, ensure that both your GTM server-side container and CustomerLabs account are set up and ready. CustomerLabs will handle the data collection and user segmentation, while GTM will manage the deployment of your server-side tags.

Create a GTM Server-Side Container

Set up a Server-Side Container in Google Tag Manager. This involves creating a server-side container in your GTM account, which will handle tracking requests on the server side.

Ensure your server (e.g., on Google Cloud, AWS, or Microsoft Azure) is configured to handle the data flow between your website and CustomerLabs.

Configure Data Layer Variables

In GTM, configure the Data Layer to push the necessary data (like user actions, purchases, or form submissions) from your website to the server-side container. The data layer variables should be structured to align with the data types CustomerLabs needs for segmentation.

Install the CustomerLabs Script

Install the CustomerLabs tracking script on your website. This script will push user event data to CustomerLabs when events occur (e.g., page views, clicks, form submissions).

Ensure the script is placed properly in your site’s code so that it can send data to GTM server-side for processing and forwarding.

Set Up CustomerLabs Webhook in GTM

After configuring your GTM container, you will need to set up a Webhook to send the event data to CustomerLabs. This allows you to send the data collected through the GTM container to the CustomerLabs 1PD Ops for further processing and analytics.

You’ll need to input the CustomerLabs API endpoint and configure it in GTM’s webhook tag settings.

Configure Consent Management and Data Privacy

Ensure that your Consent Management Platform (CMP) is integrated with GTM to respect user privacy preferences. GTM’s server-side setup should only trigger the tracking code if the user has granted consent for data collection. If a user denies consent, GTM and CustomerLabs should avoid processing or sending any personal data.

Test and Monitor the Integration

After setting up the integration, thoroughly test the entire data flow. Make sure that user interactions are being tracked, data is flowing correctly to CustomerLabs, and consent preferences are being respected.

Use the GTM preview mode to test tags and troubleshoot any issues in the event flow.

Ensure Ongoing Compliance

Regularly monitor the integration to ensure that data is being processed securely and in accordance with GDPR rules. This includes ensuring data retention policies are followed and that users can easily exercise their rights (e.g., accessing, correcting, or deleting data).

Integrating Google Tag Manager (GTM) with CustomerLabs helps streamline data collection, segment audiences more effectively, and maintain GDPR compliance. With this server-side approach, you get better control over your data, ensuring a safer and more transparent experience for users.

CustomerLabs for GDPR-Compliant Server-Side Tracking

CustomerLabs offers a powerful solution for businesses looking to stay GDPR-compliant with server-side tracking. Here’s how they help:

1. First-Party Data Control

CustomerLabs helps businesses collect and manage first-party data (data directly from users) securely. This ensures better privacy, as businesses control the data without relying on third-party cookies, making it easier to comply with GDPR rules.

2. Server-Side Tracking Integration

By shifting data collection to the server-side, CustomerLabs ensures that businesses:

• Avoid third-party cookies, which are increasingly restricted under GDPR.
• Securely process data without sending sensitive information to external parties.
• Manage consent with Consent Management Platforms (CMPs), ensuring data is only collected after explicit user consent.

3. Accurate Reporting and Attribution

CustomerLabs allows businesses to track both online and offline conversions and use lifelong first-party cookies. This helps improve the accuracy of marketing campaigns while remaining GDPR-compliant.

4. Synthetic Events for Better Targeting

With synthetic events, CustomerLabs helps businesses simulate customer actions without collecting sensitive personal data. This optimizes ad targeting while minimizing data collection and maintaining privacy.

5. Sentinel Privacy Tool for Control

CustomerLabs‘ Sentinel tool ensures businesses have full control over the data they share with third parties, helping them stay compliant with GDPR and CCPA.

CustomerLabs provides easy-to-implement server-side tracking that ensures GDPR compliance while improving data accuracy and campaign performance. Get started with CustomerLabs to keep your marketing practices both effective and compliant.

Learn more.

Conclusion

Server-side tracking is a smart solution for solving GDPR compliance challenges. By moving data collection to secure servers, businesses can enhance privacy, improve security, and meet GDPR requirements. 

While it requires some investment, the benefits—like better data control, accurate analytics, and sustainable marketing—make it worth adopting.

Future-proof your business with server-side tracking to protect user privacy and stay GDPR-compliant.

Future-proof your business with server-side tracking to protect user privacy and stay GDPR-compliant. Get started with CustomerLabs to implement GDPR-compliant server-side tracking and take control of your data today!