How does it work?
A tag in the browser sends data to a server on the company's own domain (most often server-side Google Tag Manager). The server processes the data, strips or hashes personal data where needed, and forwards it to destinations such as GA4, Google Ads and the Meta Conversions API.
What it does and doesn't do
It reduces losses caused by ad blockers and browser restrictions, lets you control which data goes to third parties, and can help page speed by cutting the number of tags in the browser. It does not override user consent: data from a user who has not consented must not be sent from the server either.
Why it matters
Ad algorithms learn from conversion data; missing data means worse optimization. More detail: Server-side vs client-side tracking, setup: server-side tracking.
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