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What is Data Layer and how to use it in Google Tag Manager

Gustavo Goncalves
Gustavo Goncalves

Oct 18, 2024

What is Data Layer and how to use it in Google Tag Manager
14:28

Do you know what a Data Layer is? If you're looking for an efficient way to collect and organize data on your website, the Data Layer is an essential tool you need to know. In this article, we'll explore what the Data Layer is and how to use it in conjunction with Google Tag Manager to boost your analytics and optimization strategies.

Imagine having a trusted source of valuable information about user behavior on your website. The Data Layer is exactly that: a layer of structured data that acts as an intermediary between your website and analytics tools. It allows you to capture and make available specific information about each user interaction, such as actions, transactions and product details.

In this post, we will discuss Google Tag Manager, the Data Layer, its functions and settings in more depth, and what to do to make the most of this powerful combination of tools. We'll see how to define custom variables, collect data accurately, and trigger tags based on information from the Data Layer.

If you're looking for an efficient way to improve your data analysis and make more informed decisions, Data Layer, in conjunction with Google Tag Manager, is the way to go. Let's go to unlock new possibilities and maximize the potential of your website?

What you will see in this post:

Good reading!

What is Data Layer?

The Data Layer is a structured and organized data structure that acts as an intermediate layer between a website and analytics tools such as Google Tag Manager. It is designed to capture and store relevant information about users' interactions on a website.

In simple terms, the Data Layer is a data structure that collects and provides specific information about user actions such as clicks, page views, transactions and product details. This data is organized in JavaScript object format and can be easily accessed and used by analysis and tracking tools.

When implementing the Data Layer on a website, developers can define custom variables to collect specific information that is relevant to your business. These variables can include data such as the value of a purchase, the ID of a viewed product or any other information important for analyzing and optimizing a website.

The Data Layer is especially useful when used in conjunction with Google Tag Manager, as it allows users to capture and pass data to different tags and analysis tools without having to modify the site's code with each new implementation.

Overall, the Data Layer is a powerful tool that helps collect, organize and share relevant information about user interactions on a website, making it easier to data analysis and performance monitoring.

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Why use Data Layer on your website?

Using the Data Layer is a best practice when implementing Google Tag Manager (GTM) and other analytics and tracking tools on a website. The Data Layer is a custom JavaScript object that contains structured information about events, interactions, and relevant user data.

There are several reasons to use the Data Layer on your website. Here are some benefits of using it:

  • Accurate data collection

The Data Layer allows you to collect specific and pertinent information about user interactions on your website. It provides an organized framework to capture data like transactions, user actions, product details, and more. This data is essential for an accurate and detailed analysis of user behavior on your website.

  • Flexibility and scalability

When you use Data Layer in conjunction with Google Tag Manager, you get the flexibility and scalability to efficiently implement and manage tags. The Data Layer makes it easy to capture custom data and let you share it with different analysis and tracking tools, without the need to modify the website code repeatedly.

  • Advanced Customization

With the Data Layer, you can define custom variables to collect information specific to your business. This means you can tailor tracking and analysis to your unique needs. For example, you can track the performance of specific marketing campaigns, target users based on custom criteria, or track events that are significant to your business.

  • Optimization and informed decision making

The Data Layer provides valuable information that helps you optimize campaigns, marketing strategies, and user experience on your website. By analyzing Data Layer data, you can identify patterns, understand user behavior, identify pain points, and make decisions based on hard data.

  • Integration with analysis tools

Data Layer integrates seamlessly with various analysis tools such as Google Analytics, Adobe Analytics, Facebook Pixel and many others. It provides a standardized framework for passing data to these tools, enabling deeper analysis and effective tracking of the most important metrics.

Thus, using the Data Layer on your website contributes to accurate data collection, advanced customization, scalability, and seamless integration with analytics tools. This leads to more efficient analysis, strategy optimization and informed decision making, boosting the success of your website and online business.

Using Data Layer in Google Tag Manager

First, we have to talk a little about what Google Tag Manager (GTM) is.  It is a tag management tool developed by Google that allows marketers and website owners to easily add, modify, and manage tags on their websites without the need to modify the source code.

A "tag" is a snippet of code that is inserted into a website to collect information or perform certain functions, such as analytics tracking, remarketing, conversion tracking, content personalization, among others. GTM provides a web-based interface that simplifies the process of implementing and managing these tags.

With GTM, you can add and configure tags from various analytics, advertising tools and other popular services, such as Google Analytics, Google Ads, Facebook Pixel, among others, without having to directly access the website's code. 

Additionally, GTM offers advanced features like triggers and variables that let you control when and where tags are activated based on specific events or predefined conditions.

O Google Tag Manager optimizes the process tag management on a website, making it more efficient and flexible. It allows marketers to have greater control over tracking implementations and make changes easier, without the need to involve developers or make direct modifications to the website's code.

Now, to use Data Layer in Google Tag Manager, you need to follow a few steps:

Step 1: Configure the Data Layer on the website

First, you need to configure the Data Layer in your website code. This is usually done by adding a snippet of JavaScript code right after your site's <head> tag. The JavaScript code is responsible for creating and filling the Data Layer object with the relevant information. 

For example, you can include information such as the transaction amount, product ID, or any other custom variable that you want to track.

Step 2: Configure Google Tag Manager

Sign in to your Google Tag Manager account and create a new container or open an existing one. Then go to the "Variables" section and create a new custom variable to capture the data from the Data Layer. Select the appropriate variable type based on the data you want to capture, such as custom JavaScript, a date variable, or a page variable.

Step 3: Configure tags and triggers

After configuring the Data Layer variable, you can create the tags and triggers that will use this data. For example, you can set up a tracking tag for Google Analytics to record a conversion whenever a transaction is completed. 

In this case, a trigger is configured to fire the tag when the Data Layer transaction variable is filled.

Step 4: Publish the changes

After configuring the variables, tags, and triggers, you need to publish the changes to Google Tag Manager for them to take effect on your site. When you publish, your Google Tag Manager code will update and begin tracking Data Layer data according to your settings.

Remember to test and verify that your Data Layer data is being captured correctly by Google Tag Manager. You can use GTM debug mode to monitor Data Layer events and make sure values ​​are being captured as expected.

By following these steps, you'll be using the Data Layer in Google Tag Manager to capture, organize, and utilize your site's relevant data, leading to more detailed and efficient analysis.

Data Layer and Google Analytics

Using Data Layer in conjunction with Google Analytics is a common and highly beneficial practice. Here is some information about how Data Layer and Google Analytics relate:

  • Accurate data collection

The Data Layer allows you to capture specific information about user interactions on your website in a structured way. You can define custom variables in the Data Layer to collect important data such as transactions, custom events, product details, and more. This data is essential for accurate analysis in Google Analytics.

  • Easy integration

Google Tag Manager, a Google tool, is commonly used to jointly implement Data Layer and Google Analytics. With Google Tag Manager, you can configure Google Analytics tags that trigger based on Data Layer events. This simplifies the integration process and avoids the need to change the website code for each new implementation.

  • Advanced tracking

With Data Layer, you can track custom events and send specific information to Google Analytics. This allows for more detailed monitoring of user behavior on your website. For example, you can monitor button click events, page views, form submissions, conversions, and more. These custom events provide valuable insights for analyzing your website's performance.

  • Campaign optimization

Using Data Layer in conjunction with Google Analytics allows you to track and analyze the performance of marketing campaigns. 

With custom events and Data Layer variables, you can identify the effectiveness of your campaigns, track ROI, analyze user behavior at different stages of the conversion funnel, and take action to optimize your marketing strategies

  • Advanced targeting

The Data Layer also allows for more advanced targeting in Google Analytics. From the data captured in the Data Layer, you can create custom segments in Google Analytics to analyze specific groups of users based on their actions, attributes, or characteristics. This provides more targeted analysis and a deeper understanding of user behavior.

In short, Data Layer and Google Analytics work together to provide a detailed and efficient analysis of user behavior on your website. The Data Layer provides accurate and personalized data, while Google Analytics offers advanced analysis and reporting capabilities. 

This combination is essential for optimizing strategies, making informed decisions and the overall success of your website and online business.

Data Layer

Creating events

To create custom events using Data Layer, you need to follow a few steps in Google Tag Manager:

Configure the Data Layer 

Make sure the Data Layer is configured correctly in your website's code, as mentioned previously. This involves creating the Data Layer object and filling the variables with the values ​​relevant to the custom event you want to track.

Configure a Data Layer variable in GTM

Go to the "Variables" section and create a new custom variable to capture the Data Layer data related to the custom event. Select the appropriate variable type based on the data you want to access.

Configure a trigger 

Then go to the "Triggers" section and create a new trigger that will fire when the custom event occurs. Select the appropriate trigger type based on the conditions that must be met for the event to fire.

Configure a Tag 

Now, go to the "Tags" section and create a new tag that will be triggered when the custom event occurs. Select the required tag type, such as a Google Analytics tag or any other analytics tool you are using. Configure the tag to send the relevant data to this tool based on the Data Layer variables.

Configure an event workflow in GTM

You can configure an event workflow to control the sequence of tags that fire when a custom event occurs. This can be useful when you need to perform several actions based on the same event.

Test and Publish 

After configuring your variables, triggers, tags, and event workflow, it's important to test to ensure everything is working correctly. Use debug mode Google Tag Manager to verify that custom events are being captured and tags are firing as expected. Once everything is working properly, publish the changes so they can be applied to your site.

With these steps, you will be configuring custom events using the Data Layer in Google Tag Manager. This will allow you to track and analyze specific user interactions on your website, gaining valuable insights to improve your marketing strategy and optimize website performance.

Summary: Using the Data Layer in GTM, you can capture personalized user events and information in a structured way, configure tags to track these events, and create analytics and customizations based on this data. The Data Layer makes it easier to implement and manage tags, offering a layer of abstraction and flexibility when collecting data on a website.

We talk a lot about Google Tag Manager, so it's important that you know the tool well. Take advantage and check out everything you need to know to monitor your sales with GTM in our other post.

How to use Google Tag Manager to monitor your sales?

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