Google Tag Manager Guide: How It Works & Why It Matters

In today’s data-driven marketing landscape, users are increasingly visiting websites and apps. So, understanding users’ behaviour accurately is important to make informed decisions. And managing multiple marketing and analytics tools is very overwhelming, mainly for non-developers. That’s why Google Tag Manager stepped in.

And in this blog, we are going to discuss:

What is Google Tag Manager?
How it works
Benefits of using GTM
Setting up GTM
SEO tracking with GTM
GTM vs Google Analytics

Best practice for using GTM

What is Google Tag Manager?

Google Tag Manager (GTM) is a free of cost tool by Google that lets you deploy and manage the marketing tools ( snippets of code or tracking pixels ) on your website and mobile phone app, even without any modification to code directly.

How does Google Tag Manager Work?

There are mainly three components where GTM works on, so now we’ll understand how it works and gain a deep understanding of those three components: Tag, Triggers, and Components. 

1. Tags 

Tags are bits of code (usually JavaScript) that send the information to third-party tools, including Google Analytics, Google Ads, Facebook pixel, Hotjar, LinkedIn insights, etc. 

1. Google Analytics: It tracks user sessions, Page views, and engagement in the website.
2. Google Ads:  It records the user when they complete the forms and purchase.
   
3. Facebook Pixels: To measure the Facebook performance of ads.
4. Hotjar Tag: It is for tracking the behaviour of users, like session recording and heatmaps.

2. Triggers

Triggers are the important factor that tells GTM when and where to fire a particular tag. It’s like if tags are “what to do,” then triggers are “ when to do it”.

There are multiple types of triggers, such as:

1. Page View Trigger: It fires a tag when the user scrolls a particular page.
2. Click Trigger: It fires when the user clicks on a specific link or button.
3. Scroll Depth Trigger: It fires a tag when a user scrolls down some percentage of a page.
   
4. Form Submission Trigger: It fires a trigger when a user submits a form.
   
5. Time-Based Trigger: It fires when a user spends some time on a page.
   

3. Variables

Variables help GTM to store dynamic values and make the triggers and tags setup more flexible and intelligent.

Think of variables are details or data that GTM may need to use to work properly.
And the constant and Google Analytics setting is a main example of a variable. 

Here are example  use cases of variables:

• Capture the URL a user is visiting in
• Capture the click text on the Button
• Capture the value of form input, just like an email address
• Pull in a Google Analytics ID dramatically 

Benefits of Using Google Tag Manager

Using Google Tag Manager gives a lot of advantages for both  digital marketers and developers use GTM for several reasons:

Instant Tag Deployment

With it, you don’t need to wait for developer assistance whenever you need a new tracking code.

Unified Tag Management

It brings everything onto one page so that you can have all your variables, triggers, and tags from one dashboard.

Built-in Templates 

There is no longer a requirement to develop raw code due to GTM’s tag templates for Google Analytics, Google Ads, Hotjar, LinkedIn, and others.

Debugging and error checking 

To guarantee an error-free deployment, you can preview your tags in Preview Mode prior to launching. 

Version Control

In GTM, each change is saved as a version. You can easily roll back if things go wrong.

How to Set Up Google Tag Manager 

It’s a very easy and quick process to set up Google Tag Manager on a website; you just have to follow these steps:

Step 1. Create GTM Account

First, go to https://tagmanager.com 

Click on “ Create Account.”
Fill in the details, like your name, country, and container name.

Step 2.  Install GTM code on your website 

GTM provides two snippets of code, 

Then add these codes to your website or via CMS. 

Step 3. Add your first tag

Go to the workspace page, add a new tag

Choose the types of that tag (ex-, GA4)

Arrange the trigger 

Then save and publish

SEO Tracking With Google Tag Manager 

GTM can be very effective for SEO tracking and improvement. Here’s what you need to do: 

Track Scroll Depth

First of all, understand how far users scroll down your content. This is a great way to evaluate blog performance.

Monitor Outbound Clicks

Look out for which external links users are clicking. This is useful for affiliate marketers or partnerships.

Track 404 Error Pages

Set up triggers to activate when a user lands on a 404 page. You can log this on the Google Analytics page. 

Schema Markup Deployment

Add structured data that is marked up directly through GTM. There’s no need to change your site’s HTML. 

Custom Events for SEO

Do create custom events like PDF downloads, video plays, or form fills. All are tracked through Google Analytics.

Google Tag Manager Vs. Google Analytics

Features	Google Tag Manager	Google Analytics
Purpose	Tool for tag deployment	Tool for Data Analysis
Data Collection	No, it only manages tools	Yes, it collects the behaviour of users
Ease of use	It requires a learning curve	User-friendly dashboard
Control	It has full control over tags	It has limited built-in features
Required Code	Minimal for set-up	Yes, it required GA4 implementation

Conclusion

Google Tag Manager (GTM) is a useful tool that makes tracking easier by improving flexibility and helps marketers to get better insights from user behavior without relying too much on developers. Whether you’re tracking SEO events, running ad campaigns, or aiming to optimize your analytics setup, GTM becomes an essential factor for your digital toolkit as it reduces complexity and enhances website effectiveness.