Google Tag Manager: What It Is, How to Set It Up + Best Practices

Google Tag Manager lets you add and update website tracking codes from one central hub, making it easier to gather and manage marketing data. Here, we’ll explain how to install and use it.

Building an efficient tracking strategy to measure and optimize your marketing results can be challenging.

Juggling multiple platforms and measurement tags can quickly become complex, time-consuming, and require technical expertise.

Enter Google Tag Manager (GTM), a popular tag management system.

In this article, we’ll cover everything marketers should know about GTM.

What is Google Tag Manager?

Google Tag Manager is a free Google tool to implement and manage website tracking tags (codes) on your site without writing or modifying the code yourself.

These tags collect and send information to third-party services (like Google Analytics and Facebook Pixel), helping track and monitor user interactions on your site — such as which pages they visit, what they click, and how they arrive at your site.

GTM holds all your third-party tags in one central container that integrates with your website.

This container communicates with your site and sends the collected data to the specified third-party services whenever a user interacts with your site.

How does Google Tag Manager work?

Google Tag Manager works by installing a snippet of JavaScript code to your website that acts as the container for all your tags.

GTM uses three key components to collect and send data from your website to your specified third-party services:

Tags

Small pieces of code that collect specific data from your site. For instance, a conversion tracking tag can record when a user completes a purchase or opts in for a newsletter.

Triggers

Triggers define when tags should send data. You can set triggers for actions that are important conversion points.

For example, you may set a trigger to activate a tag every time someone completes a purchase, signaling a successful conversion.

Variables

Variables provide context for when tags should activate. For instance, you may use a variable to ensure a tag only fires when a purchase exceeds $50. This offers precise control over data capture.

Let’s say you run an online store and want to increase your PPC ROI and sales. By using GTM, you can set up:

• A tag to track every completed transaction
• A trigger that activates this tag whenever a customer completes a purchase
• Variables that collect details about the purchase (such as the transaction amount)

This setup simplifies tracking conversions and provides detailed insights into what drives purchases.

Google Tag Manager vs. Google Analytics

GTM manages and deploys marketing tags on your website without modifying code. It simplifies the integration of services like Google Analytics by handling their tags.

On the other hand, Google Analytics analyzes the data these tags collect, providing insights into user behavior, traffic sources, and engagement metrics.

Essentially, GTM organizes and triggers data collection, while GA interprets this data to help you understand website performance and visitor interactions.

(Image: HawkSEM)

What are the benefits of Google Tag Manager?

Google Tag Manager simplifies managing multiple marketing tags on a website. You can easily add and update tags, and manage them in one central location — all without technical skills.

Here are other benefits of Google Tag Manager:

• Can improve performance by managing how scripts load, which can enhance user experience and SEO.
• Facilitates easy implementation of A/B testing by managing different sets of tags for different test scenarios.
• Adapts to various analytics, marketing, and remarketing needs thanks to its wide-ranging tag configurations.
• Supports teamwork with a user-friendly interface that allows multiple members to collaborate seamlessly, including those managing tags for multiple sites and mobile apps.
• Includes version control and debugging tools to track changes and correct errors easily.
• Reduces dependency on IT by freeing your marketing team from relying on web development resources for tag management.
• Improves data accuracy through precise tag implementation, giving you reliable insights for decision-making.

How to set up Google Tag Manager

Log in to your Google account. Go to the Google Tag Manager website and click “Create Account.”

In the next screen:

• Give a name to your account
• Select your country
• Name the container where your tags will exist on your site
• Select “Web”
• Click “Create”

Accept Tag Manager’s terms of service. Click “Yes.”

Next, you’ll see code snippets. Add them to your site to install GTM. And click “OK.”

Add the first snippet of code in the <head> of your site. The higher, the better. It collects and sends user information from your site.

The second code snippet (noscript) provides basic page view tracking for users with JavaScript disabled, though full GTM functionality still requires JavaScript.

Here’s the GTM dashboard you’ll see:

Note: For top content management systems (CMSs) like WordPress, you’ll find free plugins that make installing GTM on your site easier. For instance, GTM4WP is a popular plugin.

Go to your WP dashboard > “Plugins” > “Add New Plugin.” Search “GTM4WP” and install it.

Once installed and activated, go to its settings and add your Google Tag Manager ID.

You can find your Google Tag Manager ID in the admin section of your Tag Manager dashboard.

Now that you’ve installed GTM successfully, let’s look at how to use it.

Getting started: How to use Google Tag Manager

Google Tag Manager makes it possible for marketers and web developers to manage tags — such as GA4 and Meta Pixel (formerly Facebook Pixel) — in one place.

You can use GTM to:

• Monitor user interaction metrics (such as page views and time spent on site) to gather insights into visitor behavior
• Understand where traffic is coming from and how users navigate your site
• Track custom events like form submissions, product purchases, or any button clicks to measure the success or effectiveness of your marketing campaigns
• Deploy tags for remarketing to re-engage visitors who have left your site without converting

Top third-party platforms you can integrate with GTM include:

• Google Analytics
• Meta Pixel
• Google Ads
• LinkedIn Insights
• X Ads
• HubSpot
• Salesforce
• Hotjar
• And many more

Let’s look at how you can connect GTM with GA4 and Google Ads.

Set up Google Analytics 4 with Google Tag Manager

Setting up GA4 with Google Tag Manager is considered best practice for efficiency and control for managing website tracking.

First, go to your Google Analytics 4 account to find your measurement ID.

To do this, go to your Google Analytics 4 account and navigate to Admin > Data streams (under the “Data collection and modification” section).

Select your data stream then copy your measurement ID.

Next, create a new GA4 Configuration tag. To do this, go to your GTM account and click “Add a new tag.”

Click Tag Configuration, then Select “Google Analytics: GA4 Configuration”

Paste your measurement ID.

Set the trigger to “All Pages” and click “Save.”

Next, create a tag to track specific user actions by clicking “Add a new tag” then select “Google Analytics: GA4 Event” and choose your Configuration tag.

Enter an event name (e.g., “purchase” or “form_submit”).

Set a trigger based on the action you want to track then click “Save.”

Before publishing, test your tags using Preview mode. Click “Preview” in GTM.

Enter your website URL.

Then, interact with your site (click buttons, visit pages, etc.)

Check the Tag Assistant to confirm your tags fire correctly.

You can also verify data in the real-time report in Google Analytics.

If everything is working as expected, click “Submit” to publish your changes.

Note: Before publishing this tag, remove the existing Google Analytics code your site may have.

Add Google Ads to Google Tag Manager

Integrating Google Ads with Google Tag Manager tracks conversions from your ads. This is especially useful if you use Campaign Manager 360 (previously Google DoubleClick).

Combining Google Ads Campaign Manager 360 with Google Tag Manager gives you deep insights into your ad performance and user behavior across all campaigns.

This setup reveals which ads lead to meaningful actions like purchases or sign-ups.

To do this, go to your GTM account and add a new tag. Select “Google Ads” > “Google Ads Conversion Tracking.”

Enter your Google Ads conversion ID and conversion label.

You can find these values on Google Ads under the “Goals” > “Conversions” section.

Copy and paste these values in GTM.

Set the trigger for this tag to correspond with the conversion you’re tracking. For instance, set it to fire on form submissions if you’re tracking lead generation.

You can preview your tag setup by clicking “Preview” and navigating to your site to ensure the tag fires when the action occurs.

Once confirmed, click “Submit” to publish your tag.

Check your Google Ads account to ensure conversion data is being received.

Additional reading: How to Set Up a Google Ads Campaign: A Step-by-Step Guide

Google Tag Manager best practices

Follow these eight best practices in implementing and managing your tags:

• Audit tags regularly
• Maintain clear naming for components
• Preview and test before publishing
• Use built-in variables
• Optimize trigger events
• Implement version control
• Control user permissions
• Stay current with GTM updates

1. Audit tags regularly

Review your GTM tags on a regular basis to keep your website fast and relevant by ensuring only necessary tags are active.

Over time, certain tags may no longer align with your search engine marketing strategy and can slow down your site.

To conduct an effective audit, review the performance and relevance of each tag.

Remove outdated tags to improve site speed and update any that need realignment with your current marketing goals.

Establish a regular schedule — such as every quarter — for these check-ins and updates. Make it part of your regular PPC analysis sprints to optimize your website’s performance.

2. Maintain clear naming for components

Using consistent and descriptive names for your tags, triggers, and variables in GTM simplifies management and enhances clarity.

This ensures anyone accessing your GTM account understands the purpose of each component without delving into details.

For example, name your tags to reflect their function, such as “GA – Page View” or “Google Ads – Conversion Tracking,” which instantly informs what each tag does.

This clarity saves time during audits and when making quick updates or troubleshooting.

3. Preview and test before publishing

Before making tags live, always use Google Tag Manager’s preview and debug mode.

This feature shows how the tags operate on your site in real time without affecting actual visitors.

It catches errors in event tracking and ensures each tag performs correctly under various conditions.

To do this, activate the preview mode, navigate your site, and watch how and when tags fire.

This step prevents potential issues from going live, which could impact site functionality and user experience.

4. Use built-in variables

Leveraging built-in variables in GTM simplifies your workflow and keeps your tag management system efficient.

These variables automatically capture common data types, such as page URLs, click classes, and form values, which are essential for many tracking setups.

You reduce the likelihood of errors and streamline the configuration process by prioritizing these ready-to-use options. This makes your tag management more robust and easier to maintain.

5. Optimize trigger events

Precise triggers ensure tags fire only when necessary, avoiding redundant data processing that can slow down your site.

By optimizing the events that trigger your tags, you’ll enhance your website’s performance.

For example, instead of using a generic “All Clicks” trigger, specify that a tag should fire only on clicks that occur on specific elements, like a “Buy Now” button.

This speeds up page loading times and facilitates more accurate tracking data.

6. Implement version control

Every time you make a change and publish, GTM saves a snapshot of your container’s state. This version control is a safety mechanism that protects your data and website functionality.

If a new configuration leads to errors or performance issues, you can revert to a previous version.

This is great for troubleshooting. It allows you to manage updates and rollbacks without affecting the live environment, ensuring continuous and reliable data collection.

7. Control user permissions

Effectively managing user permissions in GTM maintains operational integrity and security.

This involves categorizing team members by their needs and responsibilities and assigning appropriate roles such as “View,” “Edit,” or “Publish.”

This control prevents unauthorized changes that could disrupt your cross-domain tracking setup or compromise data security.

Make it a regular practice to audit and update these permissions — especially when team members change roles or leave the organization — to ensure access levels remain aligned with current operational requirements.

8. Stay current with GTM updates

Regular updates to Google Tag Manager can introduce enhancements that improve functionality and increase security.

Staying informed about these updates ensures you can leverage the latest features to optimize your tracking strategies and maintain compliance with evolving data protection regulations.

Proactively applying these updates also mitigates vulnerabilities that could be exploited in older versions.

Set a routine (such as a monthly review) to check for and apply updates. This will ensure your GTM setup uses the most effective and secure technologies.

Best Google Tag Manager extensions

Extensions in Google Tag Manager are browser-based tools (for Chrome or Safari, for example) that enhance its core capabilities. They make it easier to manage, debug, and understand the tags on your website.

Whether you’re looking to simplify complex coding tasks, pinpoint issues with data tracking, or get a clearer view of how your data is collected, there’s an extension designed to help.

Choosing the right one depends on your specific needs. Some even provide pre-built tag templates to help you get started quickly.

Here are six popular GTM extensions:

1. GTM Code Editor: Enhance the default code editing capabilities of Google Tag Manager. GTM Code Editor provides features like syntax highlighting and error checking, which make writing and debugging custom HTML and JavaScript easier. It can be especially helpful for creating complex tagging setups without errors.
2. GTM/GA Debugger: Debug Google Analytics tags within GTM. GA Debugger allows you to see how tags are firing in real time and how data is being collected. This makes it easier to spot issues and ensure accurate data collection for your analytics reports.
3. WASP.inspector: Audit and debug your analytics implementation across multiple platforms. WASP.inspector shows how tags fire and what data is sent, which aids in troubleshooting and ensuring comprehensive data collection.
4. DataLayer Checker: Monitor and validate data layer values in real time as you interact with your website. DataLayer Checker verifies that the correct information is being pushed to your data layer, which improves the accuracy of your tags’ data collection.
5. DataSlayer: Check what data is available in the data layer and how it changes with user interactions on your site. DataSlayer offers an alternative to more complex debugging tools by displaying data layers and variables in a more user-friendly format.
6. Da Vinci Tools: Manage your GTM account and analyze data more easily and efficiently. Da Vinci Tools brings a suite of enhancements to GTM and Google Analytics interfaces, allowing enhanced reporting, interface shortcuts, and additional visualization options.

FAQs:

What is Google Tag Manager used for?

Google Tag Manager lets you add and update tracking scripts on your website or web pages in one central location. It manages analytics and advertising data without needing to change site code.

How to create a Google Tag Manager account?

Go to the Google Tag Manager login page and click “Create account.” Follow along the prompts to enter your account and container name, select where your container will be used (such as Web, iOS, Android, or AMP), and accept the terms of service. You’ll be in your GTM workspace dashboard.

Why connect Google Analytics to Google Tag Manager?

Connecting Google Analytics to Tag Manager lets you manage and deploy GA4 and other tags without editing site code. This setup enhances your ability to track user behavior and analyze site performance comprehensively and efficiently.

What is a Google Tag Manager extension?

A Google Tag Manager extension is a browser add-on that enhances GTM’s core functionalities, helping you debug, manage variables, or improve usability more effectively.

What does a Google Tag Manager consultant do?

A Google Tag Manager consultant specializes in setting up, managing, and optimizing GTM to improve data collection strategies. They ensure your tags are correctly configured, provide training, and help integrate GTM with other tools to maximize your digital marketing efforts.

Do I need to use Google Tag Manager?

Digital marketers, web developers, and web analysts should use Google Tag Manager to efficiently manage your website’s marketing and analytics tags.

Without GTM, adding and updating each tag individually on your website can become complex and error-prone. They can even slow down your site.

GTM centralizes these tags in a single interface, allowing for streamlined updates and management — so you can quickly add or change tags yourself.

The takeaway

Tracking your ad campaigns and marketing activities is key to continuous ROI optimization and growth.

Google Tag Manager is an important part of a robust tracking system that centralizes your marketing tags.

If you need help managing and deploying Google Tag Manager, connect with our experts.

We have a team of specialists, including analytics managers, who work with clients to develop sophisticated and efficient tracking strategies that enhance campaign performance and maximize returns.

At HawkSEM, we offer end-to-end digital marketing services to top brands like Microsoft, Nike, Verizon, and Honda. Now it’s your turn — book your free consultation with us today.

This article has been updated and was originally published in July 2024.