Full Answer
GTM exists because browser-based tracking created a management problem. Each destination required its own JavaScript tag, each tag needed triggers and variables, and marketing teams needed a way to add and modify tags without editing website code. GTM solved the coordination problem by providing a container that manages all tags in one interface.
Server-side tracking from WordPress hooks eliminates the problem GTM was built to solve. Events are captured once at the application layer — not through JavaScript tags that need management. The processing layer formats each event for its destination and delivers it via API. There are no browser-side tags to coordinate, no Data Layer variables to configure, and no trigger conditions to debug.
The specific functions GTM performs and their server-side equivalents: tag firing becomes API delivery from your server. Data Layer variables become event payload fields populated from WooCommerce order data. Trigger conditions become PHP hook conditions that fire when specific WooCommerce actions execute. Container versioning becomes server deployment versioning. Preview mode becomes server-side logging.
The cases where GTM still adds value are limited to non-ecommerce event tracking that cannot be captured server-side — such as scroll depth, video engagement, or click tracking on specific page elements. For WooCommerce stores where the primary tracking need is purchase and checkout events delivered to ad platforms and BigQuery, GTM adds complexity without adding capability that server-side capture does not already provide.