The complete guide to server-side tracking in 2025 (aka how to stop burning money on ads that don't convert)

Sorry to say, but if you're still using traditional tracking methods, you're likely missing 30-40% of your conversions and burning ad budget on campaigns that look like they're performing well, and neglecting campaigns that are actually your top performers.

Here's what's happening:

• Third-party cookies are being phased out by browsers
• Ad blockers are getting better at blocking tracking pixels
• Privacy laws like GDPR and CCPA make data collection more complicated
• Customer journeys now span websites, apps, physical stores, and CRM systems

If you've noticed gaps between conversions in Google Analytics and what shows up in your Meta or Google ads, that's a clear sign your tracking is breaking down. The solution, folks, is server-side tracking.

What is server-side tracking and why it matters

Server-side tracking moves data collection from the user's browser to your server before sending information to marketing platforms. This simple shift makes a huge difference:

• Ad blockers and iOS privacy features won't block your tracking
• Your ad campaigns will optimize better with more complete data
• You'll have control over what data goes where
• You'll capture more conversions in Shopify and other e-commerce platforms
• You can connect your offline conversions like CRM data with your online tracking more easily

In 2025, server-side tracking is essential for any business serious about marketing performance and growth.

What problems does server-side tracking actually solve?

Many marketers are surprised by just how many persistent issues vanish almost immediately after making the switch from client-side to server-side tracking.

What it fixes:

• Missing conversions: Recovers conversions that ad blockers, iOS restrictions, and browser settings would normally block.
• Attribution gaps: Reduces the difference between clicks in Meta ads or Google ads and your actual conversion numbers.
• Data inconsistencies: Resolves mismatches between Google Analytics 4 and your ad platforms by using a single data source.
• Privacy compliance: Helps you follow privacy regulations while still collecting the data you need.
• Online-offline connection: Links online behavior with offline sales (i.e. conversions that happen in your CRM, or anywhere else) through proper integrations.

What it can't fix:

While server-side tracking solves many critical issues, we can't promise it's a silver bullet. Some problems require more fundamental fixes before server-side tracking can work its magic. Here are the limitations to keep in mind:

• Poor setup: If your pixels are incorrectly installed or your events are inconsistently named, server-side tracking won't automatically fix that.
• Attribution models: It can't determine on its own that someone visited your store because of a Facebook ad unless you have a system to track that connection.
• Bad CRM data: If your customer data is a mess, server-side tracking won't clean it up for you.

Three ways to implement server-side tracking

Now that you understand the benefits and limitations of server-side tracking, let's talk about how to actually put it into practice. There's no one-size-fits-all approach here as the right implementation depends on your technical resources, budget, and specific business needs.

Let's walk through the three main options available to you, ranging from highly technical to surprisingly simple.

Option 1: Build a custom solution (DIY approach)

Difficulty rating: 10/5 👿

Setting up server-side tracking from scratch is not for the faint of heart. However, for companies with specific needs, strong technical teams, and boundless money and patience, building a custom solution can be an option.

What it involves (in very simple terms):

• Setting up and maintaining your own servers (Google Cloud, AWS, or on-premise) + writing custom code for API connections and integrations
• Create data collection endpoints, processing and forwarding data
• Ensure deduplication, data formatting, hashing, and all other technical details are in mint condition
• Ensuring you're fully compliant with GDPR/CCPA
• Debug before launch and continuously optimize to handle scaling and new integrations.

If that didn't make you sweat, here is a recap of the challenges that come with going the DIY route:

• High complexity, as it requires a dedicated engineering team
• Implementation time is usually 3 to 12+ months
• Maintenance is practically a full-time job
• Scalability depends entirely on how you've built it

This approach is viable only for large enterprises with extensive technical resources and highly specific tracking needs. As nice as it sounds that you've built something yourself, the fact is that most businesses simply don't need to go down that path.

Option 2: Google's server-side tag manager

Difficulty rating: 4/5 🙂

Google's server-side GTM provides a foundation for server-side tracking, but requires technical expertise. Here's what you can expect:

• You'll need to set up (and maintain!) cloud infrastructure (most often Google Cloud Platform)
• Configure and maintain complex tag & integration setups
• Dedicate technical resources not only to implementation but also to maintenance and further development

Many businesses find this approach overcomplicated and challenging because it pulls developers away from other important projects.

Option 3: Use a specialized platform like Tracklution

Difficulty rating: 1/5 🥳

For most businesses, using a ready-made solution offers the best balance, because:

• There's no development work required
• Implementation takes minutes instead of months (yes!)
• Server maintenance and API updates happen automatically
• They're designed for marketers rather than developers

Server-side tracking doesn't have to be a never-ending technical project. Whether you want better data accuracy, improved attribution, or just a setup that works, the easiest option is often the best.

Real results from Tracklution customers: Server-side tracking in action

Case 1: Connecting online and physical store sales

Problem: A retailer ran digital ads for both online and in-store sales but could only track online purchases, leading to poor campaign performance.

Solution:

• Moved website tracking to server-side → 15% more conversions tracked
• Connected in-store sales data through webhooks
• Added profit margin data for better optimization

Result: Google ads could finally see both online and in-store sales, showing the true return on ad spend and enabling better campaign decisions.

Case 2: Fixing broken customer journeys

Problem: Customers started on the main website but completed purchases in a separate system, creating gaps in tracking.

Solution:

• Implemented server-side tracking with first-party cookies → 35% increase in tracked conversions
• Set up proper cross-domain tracking
• Connected backend data through webhooks

Result: Customer acquisition costs dropped -18% while new customer growth increased +26% within a year.

Case 3: Using complete data for ad optimization

Problem: A company had both online and offline sales but couldn't connect the data, preventing effective use of automated bidding.

Solution:

• Switched to server-side tracking
• Set up webhooks for payment confirmations to catch online sales accurately
• Connected CRM data to get visibility into offline sales data

Result: Ad spend decreased -35% while maintaining growth targets, and customer acquisition costs dropped -25%. Just wow!

Case 4: Growing e-commerce without technical resources

Problem: An e-commerce store needed better tracking but didn't have developers to implement it.

Solution:

• Used Tracklution to handle server-side setup without developers
• Implemented first-party cookies
• Connected profit margin data through webhooks

Result: Conversions increased +24.5% across Meta and Google ads, while acquisition costs decreased -19.7% in just three months. 🫡

How to convince peers and influence your decision-makers

It's easy to get overwhelmed by industry terms and the newest trends. If you're convinced that SST is exactly what your company needs, we've laid out some solid business arguments that will help you talk about SST to your peers, and welcome your boss to the server-tracking side.

Better data = better return on ad spend

Right now, your ad platforms are missing conversion data. Server-side tracking captures more complete information, helping platforms like Google analytics and Meta optimize your campaigns more effectively without spending more.

Prepare specific examples: "Our current tracking shows 150 conversions per month in Google ads, but our CRM shows 230 actual sales. That's 80 conversions Google's AI can't optimize for."

Consistent reporting = smarter budget decisions

When your numbers don't match across platforms, it's hard to know where to invest. Server-side tracking creates consistency across platforms, giving you reliable data for budget decisions.

Show them the current reporting discrepancies: "Our Meta pixel reports 43% fewer conversions than Shopify, making it impossible to know our true CAC or ROAS."

Future-proof solution = protection against privacy changes

Tracking will only get harder as privacy rules tighten. Server-side tracking helps you stay compliant while still collecting the first-party data you need.

Emphasize risk mitigation: "Privacy regulation requires us to know what data is being collected and how it is used. With client-side tracking, our tracking is a black box and we don't have an audit trail on what is being tracked. With server-side tracking, we know exactly what is collected from our website and how the data is used."

Competitive advantage = staying ahead of the market

While competitors struggle with deteriorating data quality, your business will make better marketing decisions based on more complete information.

Position it as strategic: "Our three main competitors are still using client-side tracking exclusively, giving us a window of opportunity to outperform them through better data-driven decisions."

Cost-benefit analysis = clear ROI

Calculate the potential ROI by estimating current data loss. For example: "If we're losing 25% of our conversion data, and our ad spend is $50,000 monthly, then improving optimization by capturing that data could increase ROAS by 15-20%, saving us $7,500-$10,000 monthly."

Handling common objections to server-side tracking

Be prepared for these common pushbacks:

"It's too expensive"

Response: "The cost of poor data quality is higher. We're currently making $50,000 in monthly ad decisions based on incomplete information. Server-side tracking costs $X monthly but could improve performance by Y%, resulting in net positive ROI within Z months."

"We don't have technical resources"

Response: "That's why solutions like Tracklution make sense. They require minimal technical investment while providing immediate benefits. Implementation can be completed in days, not months."

"Can't we just wait until it becomes absolutely necessary?"

Response: "Waiting means continuing to optimize campaigns on incomplete data, essentially throwing away our marketing budget. Early adopters will have a significant competitive advantage as more browsers hinder client-side tracking."

"How do we know it will actually improve results?"

Response: "We can implement a phased approach, starting with our highest-value conversion tracking. This allows us to measure the impact before full deployment, creating a clear before/after comparison."

How to get started with server-side tracking in 4 easy steps

Step 1: Identify what you need to track

Start with what matters most to you:

• Website conversions (purchases, form fills, subscriptions)
• Offline sales (in-store, phone orders, CRM deals)
• App events (installs, purchases, registrations)
• Cross-domain customer journeys

Step 2: Choose your implementation method

Based on your resources and needs:

• Google's server-side GTM (if you have technical resources)
• Custom solution (if you have specific needs and developers)
• A server-side tracking solution, like Tracklution (if you want simplicity and speed)

Step 3: Ensure privacy compliance

No matter which option you choose:

• Implement Google consent mode v2 for Google ads and analytics
• Make sure you're aligned with GDPR, CCPA, and other privacy requirements
• Set up your system to only send compliant data

Step 4: Connect your marketing platforms

Complete your setup by connecting to:

• Google Analytics 4
• Google ads
• Meta ads
• Other platforms you use

To tell you the truth

Server-side tracking has become essential for serious digital marketing and growth.

Whether you're struggling with missing conversions, privacy compliance, or connecting online and offline data, it offers a solution that can transform your marketing effectiveness.

You could spend months setting up server-side tracking manually and hire someone for ongoing maintenance. Or you could let a platform like Tracklution handle the technical complexity while you focus on growing your business.

The choice is yours, but one thing is clear: the future of tracking is server-side. The only question is how quickly you'll get there.

TL;DR: Frequently Asked Questions

What is server-side tracking in simple terms?

Server-side tracking moves data collection from the user's browser to your server, making it immune to ad blockers and privacy restrictions while giving you more control over your data.

Why should I care about server-side tracking in 2025?

You're likely missing 30-40% of your conversions with traditional tracking, causing you to waste budget on campaigns that appear to perform well while neglecting your actual top performers.

What are the main benefits of server-side tracking?

Better ad campaign optimization, more accurate conversion tracking, reliable cross-platform reporting, enhanced privacy compliance, and proper connection between online and offline data.

How difficult is it to implement server-side tracking?

It ranges from extremely complex (custom solutions requiring developers and months of work) to surprisingly simple (using ready-made platforms like Tracklution that can be set up in minutes).

What kind of results can I expect?

Businesses using server-side tracking have seen 15-35% more tracked conversions, 18-35% lower acquisition costs, and significantly better growth with the same marketing budget.

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Ready to improve your data collection and measurably improve your marketing performance? Try server-side tracking today and see the benefits for yourself!

P.S. Questions about integrating with your Shopify store or setting up conversion tracking in Meta? We're here to help!