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Understanding Website Tracking: What It Is and How It Works

Whether you’re simply surfing the web or a website owner, learning about website tracking is key to understanding how the web works today.

In this guide, we explain what website tracking is, how it works, and how you can use it in line with data protection legislation.

website tracking

What is Website Tracking?

Website tracking refers to the process of collecting and analyzing data about users’ interactions with a website. For example, businesses can track the pages visited, the duration of the visit, the actions performed on a page, the location of the user, and so on.

Website tracking is widely used. It allows tailoring content to user’s preferences and optimizing a website to drive growth and conversions.

💡 First-party vs Third-party tracking

We usually distinguish between first-party and third-party tracking.

  • First-party tracking is carried out by the website’s owner. For example, the owner of an e-commerce store may use Google Analytics to check which pages are performing better and what could be improved.
  • Third-party tracking is carried out by a third party through the website you’re visiting. For example, social media platforms can track users on multiple websites – if these websites use social media widgets – and then show users personalized ads.

Is Website Tracking Illegal?

Website tracking, when carried out in compliance with data protection laws, is a legitimate practice.

This means that there are requirements you must comply with to track your users. Failure to comply with these requirements can expose you to legal consequences or fines.

We’ll expand on this topic in the paragraph below.

How Does Website Tracking Work?

Web tracking uses different types of tracking technology to gather user data on a website and track their behavior.

Let’s take a closer look at these tracking technologies.

Cookies

Cookies are little text files that a website places on a user’s browser when they visit the site and track the user’s behavior.

In general, cookies collect information about internet habits, prior visits, search history, and so on. With this gathered information, cookies allow websites to remember users and their preferences, allowing sites to customize page content to the user.

👉 Learn more about tracking cookies in our dedicated guide

IP Address Tracking

Another example of web tracking technology is IP address tracking.

When you visit a website, your IP address is logged together with details about your location, time, and the page you visited. This kind of tracking is used to determine the geographical location of users and recognize visitors from the same network.

Tracking Pixels

Tracking pixels are tiny, 1×1 images embedded in websites or emails.

When you load a page or open an email containing a tracking pixel, it triggers a request to the server, which collects information about your IP address, browser type, or time of access.

Device Fingerprinting

Device fingerprinting is a technique that identifies devices based on their unique characteristics.

Websites analyze factors like screen resolution, browser type, operating system, fonts, and plugins to create a fingerprint of your device.

Examples of Online Tracking

The technologies we described above can be used for different reasons. Examples of online tracking are:

  • Retargeting: Retargeting relies on cookies or pixels to track your visits and display relevant ads later. Have you ever searched for something to buy online, and then had ads for the same product pop up everywhere? That’s retargeting!
  • Website analytics: As we said above, websites can use user tracking to gain insights into their performance. Where is the traffic to the website coming from? What pages are performing better? What could be improved? Website tracking can help gather this information and guide optimization.
  • Email Tracking: Same as website analytics, tracking pixels embedded in emails can gather information about open or bounce rates, location, or device.
  • Cross-site tracking: The tracking can happen either on the website you’re visiting or be cross-site. Cross-site tracking relies on third-party trackers, that “follow” users across multiple websites to analyze their behavior. This kind of tracking can be used to show users personalized ads.

Benefits and Concerns of Web Tracking

As you can understand, from a business perspective, the benefits of web tracking are many. Web tracking can improve the performance of a website or marketing campaign, resulting in better spending and greater revenue.

On the other hand, from a user’s point of view, web tracking can somehow feel like an invasion of privacy, even though it results in a more personalized web experience.

For this reason, data protection laws regulate the use of website tracking.

How To Use Website Tracking and Comply With the Law

If you own a website and are resorting to web tracking, it’s important to know which law applies to you, to comply with the right requirements.

🇪🇺 EU GDPR and Cookie Law

In the European Union, trackers are regulated by both the General Data Protection Regulation (GDPR) and the ePrivacy Directive, also called Cookie Law.

To use trackers in the right way, you must:

  • Get your users’ consent through a cookie consent banner.
  • Provide a cookie policy, where you explain what trackers you use and why.
  • Block trackers from running before consent and when consent is denied.
  • Keep a record of cookie consent.

🇺🇸 California’s CCPA

Under CCPA, you can process personal data (including through cookies and trackers) without your users’ consent. However, you must provide an easy way to stop behavioral advertising and the sale and sharing of their personal information (opt-out). This is typically done through a “Do Not Sell or Share My Personal Information” link.

Other US State Laws

The CCPA is only one of the many state privacy laws effective in the US: Virginia, Connecticut, Utah, and Colorado, among others, have also enacted their privacy laws.

When it comes to personal data processing, most of them have similar requirements to the CCPA:

  • You must inform your users about your processing activities (including those performed through cookies and trackers.
  • You must provide them with a way to opt out of certain processing activities.
Check the full overview here: US State Privacy Laws Overview

🇧🇷 Brazil’s LGPD

Brazil’s Lei Geral de Proteção de Dados Pessoais mirrors the EU’s GDPR in many ways.

For example, the LGPD also requires explicit consent. In addition, the Brazilian DPA has published its guidelines on cookies and trackers, which mention consent as a necessary condition for the installation of trackers.

Do you use trackers? iubenda can help you with that!

If you don’t know where to start in meeting these requirements, getting the right tools can be what you need to do!

Our Privacy Controls and Cookie Solution helps you meet web tracking requirements across multiple legislations.

Create your cookie consent banner to get consent from your users, block cookies from running and keep a cookie preference log, as legally required.

And you can do all this without limiting your performance!

About us

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Cookie consent management for the ePrivacy, GDPR and CCPA

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