The concept of server-side tracking in its simplest form is having an intermediate server between the website (Or any other data source) and the tracking / analytical platforms (Data destinations)
This is the description of the most basic server-side systems but it leaves out the main question - Why should we care about server-side tracking in the first place?
To answer that we have to discuss starting from the challenges in digital marketing and ending with the website performance issues in modern days. But for the sake of simplicity we can focus on one of the most important reason:
The data sent through server-side tracking has the higher chance of reaching the destination as the restrictive technologies (Such as Ad blockers) can’t affect this way of data transfer as easily as the traditional one.
This means that your ad campaigns have a higher chance of effective optimization while your analytics platforms have more accurate results for you.
Answer is yes and no.
Yes, because it has the same purpose - Sending data to the advertising and analytical platforms - which it can do much better.
And no, because the entire conversion tracking model of some platforms still solely rely on third-party cookies (Including Google Ads).
The fact is that server-side tracking is completely focused on the first-party data and not all platforms can support this kind of data collection yet.
But coincidentally, that’s where the modern web infrastructure is headed to.
Third-party cookies are already scheduled to be phased out in Google Chrome while Apple Safari and Mozilla Firefox have already deprecated them.
Some advertising platforms previously using third-party cookies have also shifted focus to first-party data and server-side tracking but this time, they are asking businesses to collect and store the necessary information on their own. Definitely, this is not the mandatory requirement, but in the end, the quality of data dictates the advertising performance.
This leaves the digital marketing industry in a bit of an uncertainty, but also shapes the trajectory of how the server-side tracking technology can be developed further.