Decoding the Cookie-less Future: Server-Side Tracking Insights

Digital marketers welcome to 2024!??

You've probably heard whispers about a 'cookie-less future.' But what does that mean, especially if you've been too busy to notice?? First, let's take a quick dive into what 'cookies' really are in our world of digital advertising.??

Picture cookies as tiny digital breadcrumbs, little pieces of data, that browsers stash away on a user's device. They're like secret agents, tracking online behavior and preferences.??

But here's the twist: there's a growing unease about privacy and how these cookies track us. So now, there's a big push to either completely phase them out or rein them in, especially those third-party ones. It's a game-changer, folks!

As per Google’s latest announcement – “If your site uses third-party cookies, it’s time to take action as we approach their deprecation. Chrome plans to disable third-party cookies for 1% of users from January 4th, 2024, to facilitate testing, and then ramp up to 100% of users from Q3 2024.”??

Therefore, if your company relies heavily on digital marketing, data, and technology, it’s time to act fast as 1% of cookies have already been deprecated! The cookie-less future envisions a shift away from relying on traditional cookies for online tracking and ad targeting. This transition is partly driven by privacy regulations, such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), as well as changes in web browser policies. In the cookie-less future, alternative technologies and methods may be employed for user tracking and targeted advertising while prioritizing user privacy. Some proposed alternatives include first-party cookies, contextual advertising, and technologies like federated learning of cohorts (FLoC), which segments or buckets users based on common interests without revealing individual (PII) data.??

One such method that’s been deployed by advertisers is “Server-side Tracking”, let’s take a look at what it is and how you can adopt it.??

Understanding Server-Side Tracking??

Server-side tracking (SST), refers to a method of collecting and processing data related to user interactions with a website directly on the server, as opposed to relying heavily on browser cookies. In traditional client-side tracking, data collection, and processing take place on the user's device (client), facilitated by JavaScript.?

Thus, in a more technical sense, instead of relying on JavaScript running on the user's browser to collect and process data, the server handles these tasks. When a user interacts with a website, the server records and processes relevant information. Server-side tracking can help improve privacy compliance because it operates independently of the user's browser settings. This may align with privacy regulations and user expectations regarding data collection and processing.?

The major distinction between server-side tracking and client-side tracking lies in where data is gathered before reaching analytics platforms.??

In server-side tracking, data is first collected and processed on your server before being sent to analytics platforms such as Google Analytics or Adobe Analytics.??

Whereas, in client-side tracking data is directly sent from the user's device to the analytics platform without intermediate server processing.

Now that we have understood the underlying principles of server-side tracking, let’s look at the solutions offered by Meta and Google regarding SST.??

Conversions API – CAPI

Conversions API is built to link your marketing data—covering website events, app events, business messaging events, and offline conversions—from their server, website platform, mobile app, or CRM to Meta systems. This connection helps you optimize ad targeting, reduce cost per result, and measure outcomes.?

Instead of managing distinct connection points for each data source, you can use the Conversions API to streamline their technology stack by sending various event types. In direct integrations, this involves establishing a connection between your server and Meta's Conversions API endpoint.?

By integrating server-side data through the Conversion API, advertisers can enhance the precision of ad targeting. This is especially valuable in scenarios where client-side tracking may be limited. As per Meta, CAPI contributes to more accurate measurement of campaign outcomes. You can gain insights into how users interact with your content, allowing for better-informed decision-making.?

Enhanced Conversions for Web – Google Ads?

Enhanced Conversions for the Web is a functionality aimed at enhancing the precision of conversion measurement. It supplements your current conversion data by securely transmitting hashed first-party customer data. This hashed customer data is then compared to the hashed customer data associated with signed-in Google accounts, attributing it to ad events like clicks and video views. This process aids in accurately measuring the conversions for your campaign while prioritizing user privacy.?

In contrast to other enhanced conversion methods like tagging, which need immediate transmission of first-party data during the conversion, the API allows you to send hashed first-party data within a window of up to 24 hours after the conversion event. This flexibility empowers you to source first-party data from diverse origins, including customer databases or CRM systems, providing you with a broader range of options for your data source.?

While these are the current and popular market solutions being recommended by the big players, there seem to be budding and evolving methods that marketers can adopt to overcome cookie deprecation challenges.?

Sokrati’s core is Performance marketing and data technology, we understand the need for cutting-edge solutions to improve measurement capabilities and we actively work with our clients to enhance measurement. By understanding the imminent shifts in online privacy and data tracking, Sokrati is proactively developing cutting-edge solutions to fortify and advance measurement capabilities. In anticipation of the diminishing relevance of traditional cookies, we are actively investing in technologies and strategies that embrace privacy-centric approaches, such as server-side tracking and other cookie-less alternatives.?

Keeping in mind the urgency of adopting new measurement solutions, Sokrati’s 40% of Web Accounts have already implemented Conversions API, giving them the competitive edge! Upon implementation of CAPI, Sokrati’s clients observed an 18% increase in the accuracy of the events being recorded.??

Collaborating closely with our clients, Sokrati aims to not only adapt to but also lead in the cookie-less future, ensuring that our performance-focused ethos remains at the forefront of digital advertising and measurement practices. This forward-looking approach underscores our dedication to providing innovative solutions to our clients that align with emerging industry trends and prioritize user privacy.??

If you’re wondering how to get started on this cookie-less future journey, write to us at [email protected] .??

Written by - Vaishnavi Vajjhala