05/11/2022

What is Google Tag Manager and How does it Work?

Insights

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How can you monitor and measure the return on your online advertising strategy? You probably use Google Analytics if you are like most businesses. Many companies have switched to Google Tag Manager (GTM) for simpler tracking management.

This is a sister product to Google Analytics that makes it easier for you and your staff to track user activity and site performance. But what is Google Tag Manager? Continue reading to learn more!

Learn why Google Tag Manager is important and how it can be used with Google Analytics. You can even get a quick breakdown of the tool’s benefits and drawbacks.

What is Google Tag Manager?

Google Tag Manager allows you to create, manage and launch HTML and JavaScript tags. These tags can track analytics data on mobile apps and websites, as well as share it with web analytics platforms such as Google Analytics.

What’s the difference between Google Tag Manager & Google Analytics?

Google Analytics, Google Tag Manager, and Google Analytics are both free Google tools. Google Tag Manager is focused on the data you need to track, how to log it, and where to send it.

Google Analytics, on the other hand, houses data that you can view and interpret through reports.

What is Google Tag Manager?

GTM allows you to create custom tags and triggers. These components simplify and automate tracking user behavior on your website or mobile apps.

They eliminate the tedious tasks of tag tracking and management via Google Analytics. Google Tag Manager replaces manually-coded tags on your website or app to accomplish these tasks. You can manage, replace, update, and manage tracking tags on your website for Google Analytics or Google Ads.

These tracking tags can be updated immediately. This is in contrast to manually copy-and-pasting new code onto many pages. Google Tag Manager automates a process that was previously tedious and manual.

GTM has 6 key components

Understanding the six components of GTM is essential before you use it in your strategy.

GTM ComponentWhat it does
Container SnippetAllows you to store your tags and allows you to update tags automatically.
TagsTracks an action like a purchase and sends the data to Google Analytics.
TriggersDescribes an action (e.g., completing a purchase) that will trigger the trigger’s tag.
VariablesThis function acts as a placeholder for changing values, such as URLs or product prices.
ValuesThis describes a static and user-definable value, such as a page URL for a trigger.
OperatorsThis table lists the relationship between a variable (or value) and its required value. The trigger will fire if the value and variable meet the requirements. Once the trigger is set, the tag will collect the relevant data and send it to the appropriate platform (e.g. Google Analytics).
1. Container snippet

Google Tag Manager plays an important role in container snippets. Because container snippets allow you to update the app or page tags automatically, You don’t have to copy-and-paste your tracking tag onto a page. Instead, you can modify the tag using Google Tag Manager.

Your page will be updated with the container snippet. You will find the following information in every container:

  • Tags
  • Triggers

You will need at least one container snippet to create a GTM Account.

2. Tags

Google Tag Manager also plays a crucial role in tags. You will most likely have several tags. You will have a range of tags that describe the things you want to track and send to third-party analytics tools like Google Analytics.

Your company might want to track product purchases, interactions with video, and conversions from an ad campaign.

3. Triggers

GTM’s core feature is triggered. You can tell Google Tag Manager what triggers you want to use for data collection and transmission. You might want to track page views and purchases for specific products.

You can use a trigger to specify these actions. Triggers are made up of three parts.

  • Variables
  • Operators
  • Values

Multiple triggers can be created for one tag to ensure accurate tracking. No matter how many triggers or tags you create, make sure they work as intended. You could find out months or years later that your triggers and tags are not working properly if you don’t test them.

This can have a huge impact on your digital marketing strategy and advertising strategy.

4. Variables

Variables are placeholders for values. They include:

  • Built-in variables
  • Variables that can be customized by the user

Built-in variables can be pre-configured GTM variable variables such as following a page path. User-defined variables have custom GTM variables. These variables are used to describe forms completed, purchases, and other details in most cases.

5. Values

Values allow you to customize your data collection and triggers. Values allow you to specify a value in a text box. This allows you to compare your variable against it. Your operator may require that your variable equals your trigger value.

It may also need to be lower in value. Take, for example, the operator and value of a trigger variable:

  • Variable: URL
  • Operator: equals
  • Value: /application-accepted.html

Due to these values, this trigger will only happen when the URL (the variable) equals /application-accepted.html (the value). This type of trigger could be used by a company to track and separate conversions such as for purchases and applications.

6. Operators

Google Tag Manager is also dependent on operators. Operators allow you to define the relationship between variables and values. This relationship affects the time a trigger can be fired and how data is collected via tags.

To ensure that you are tracking the correct data, you will need to test it again. Here are some examples of operators:

  • “equals”
  • “Contains”
  • “doesn’t contain”

You also have the option to choose from other operators such as “less than,” matches RegEx, and many more.

Four advantages of Google Tag Manager

Google Tag Manager has many perks including:

1. Streamline collaboration

Tools that simplify your life are essential, regardless of whether your team collaborates over the phone, via video, or face-to-face. Google Tag Manager is one such tool. GTM allows your team to log in and view your tags immediately.

You can also set user-specific permissions so that each person has the right level of access.

2. Third-party tags can be used to track data easily

You may use Google tags (like Google Analytics and Google Ads) to view data from your app or website, depending on the business. You may need third-party platforms as your company grows. This is where the value of GTM comes in. GTM allows you to create tags for a variety of third-party platforms.

If required, your team can also create custom tags. GTM provides templates for both third-party and Google tags. This handy feature allows you to quickly get started with Google Tag Manager.

3. To quickly fix problems, make sure you check for errors

GTM requires some hands-on training. The platform offers error checking. Your team can quickly spot errors and look at your triggers and tags with error-checking. This feature, even if you are an expert with Google Tag Manager can save you time and prevent inaccurate data tracking.

4. In a matter of seconds, add and update tags

GTM’s ability to quickly update your tracking settings is its greatest advantage. Google Tag Manager can update your tracking settings quickly, regardless of whether you have one or more container snippets on your site. This feature makes it easy to copy and paste new snippets into pages without the tedious and time-consuming process.

Google Tag Manager has 2 drawbacks

GTM has many benefits but also some drawbacks.

1. Requires a developer background

Google Tag Manager is available to anyone. However, it is not for developers. GTM adoption can be difficult due to this learning curve. It can lead to a company abandoning the whole idea.

Learning variables, operators, and values can be daunting and lead to errors. Google Tag Manager has an error-checker tool as well as a beginner’s course.

2. Large sites require a slow and laborious migration process

Companies with large websites can find it difficult to migrate over to GTM. This is because you’ll need to delete any tracking codes from site pages and replace them with your container snippet. This project will require a lot of time and resources if you don’t have a skilled developer to speed up the process.

It can be tedious to copy and paste the container snippet if you have a site with 25 or 50 pages. There is no way around this problem, except to use the developer’s expertise. However, migration to GTM is likely to be inevitable. It is important to take care of this before your business adds pages or increases the workload for migration.

GTM is so easy to use for businesses.

Google Tag Manager has quickly become the standard for businesses around the globe. It’s not easy to use though.

Most teams using Google Tag Manager (such as advertising or marketing departments) don’t have the developer experience that is required to make the adoption and use of GTM seamless.

Google Tag Manager is a great tool for learning.

To become proficient with GTM, you will need to read, take classes and practice your skills. However, it’s well worth the effort and time.

Learn more about GTM and digital marketing strategies using it

GTM is not without its learning curve. It is worth reading about Google Tag Manager and investing in training. You will be able to adopt this tool with less hassle if you have a better understanding.

About the author

Kobe Digital is a unified team of performance marketing, design, and video production experts. Our mastery of these disciplines is what makes us effective. Our ability to integrate them seamlessly is what makes us unique.