Last Updated: May 17, 2025

If you are not already familiar with Segment.com, here is a quick recap.

Segment.com is a tool used to route/send data between multiple data sources.

The data source from which the data is extracted is called the ‘originating data source’. The data source to which the transformed data is sent is called the ‘destination data source’.

The role of the Segment is to ‘Extract’, ‘Transform’ and ‘Load’ data between different data sources. It acts as a hub between originating and destination data sources.

If you are new to ‘Extract’, ‘Transform’, and ‘Load’ (ETL) functions, then read this article: Why you may no longer need Google Tag Manager, where I explain the concept of ‘ETL functions’ in great detail.

I strongly suggest reading this article first so that you can understand what I am discussing next. I won’t be explaining the very basics of ETL functions in the present article.

Segment vs Google Tag Manager

1. Both Segment and GTM are designed to route data from one data source to another. However, unlike GTM, Segment can be much more easily used to route data between multiple data sources.
2. Both Segment and GTM are primarily designed for developers. However, unlike GTM, Segment is much more non-developer friendly, as it can automate many ETL functions.
3. Segment can automate ETL functions for you. GTM can never do that. This is the biggest advantage of using Segment.
4. GTM core is based on ‘data layers’. Segment core is based on an API. As such, there is no concept of ‘data layers’ in Segment.
5. GTM is a tag management tool. Segment is not a tag management tool.

Though Segment often promotes itself as an alternative to GTM, it is worth noting that it is not a replacement for GTM (yet).

#6 Google Tag Manager has one very strong advantage over Segment, and that is its ability to control tags. Through GTM, you can easily control:

1. When a tag should fire
2. When a tag should not fire
3. Where a tag should fire
4. Where a tag should not fire
5. How often should a tag fire
6. In which order should different tags fire
7. What the tag should do when it fires.

Segment lacks that ability. So in many cases, you have to rely on a tag management solution like GTM to route data.

However, here is a thing. I don’t see any reason why Segment (or any similar tool) cannot, in the near future, also provide the features of a traditional tag management solution.

If you keep this possibility in mind, there will come a time when traditional tag management solutions may no longer be required. Because of that, I think the future of GTM is bleak.

For now, you have to use a tag management solution alongside Segment.

Avoid installing Segment via GTM. Instead, install GTM in Segment.

Even Segment recommends installing GTM in Segment.

Segment can send the same event data to multiple data sources in the format they understand.

For example, Segment can send the same clicks on the ‘add to cart’ button to GA4, Adobe Analytics, Piwik, etc.

For Segment, GTM is just another data source.

So, Segment can also send the same event data to GTM in the format it understands.

For example, Segment can convert existing events into data layer objects for GTM use.

However, for GTM, Segment is just another tag.

So if you install Segment via GTM, Segment will either have a hard time translating and routing data in the format GTM and other data sources can understand, or it will simply not work in certain cases.

You lose the benefit of having Segment as the central data orchestrator, which undermines its core value proposition.

So, you should avoid installing Segment via GTM.
>> Install the Segment snippet directly on your website (not via GTM).
>> Use Segment’s integrations to connect GTM as a destination.
>> Segment will then inject GTM as needed and translate events into the data layer for GTM to use.

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Installing Google Tag Manager in Segment.com

Follow the steps below:

Step 1: Log in to your Segment account.

Step-2: Navigate to the ‘sources’ section in the Segment web app and click on ‘Add source’ button.

Step-3: Find and click on the source named ‘JavaScript Website’.

Step-4: Click on the ‘Add source’ button.

Step-5: Enter the source name and website URL and then click on the ‘Add Source’ button:

Step-6: Copy the Segment snippet and paste it high in the head section of all the pages of your website.

Step-7: Navigate to the ‘Catalog’ section in the Segment web app.

Step-8: Search for “Google Tag Manager” in the Catalog.

Step-9: Select “Google Tag Manager” and click on the ‘Add destination‘ button to select the source (your website) to which you want to connect GTM.

Step-10: Select your data source and then click on the ‘Next’ button.

Step-11: Give your destination a name and then click on ‘Create destination’ button.

Step-12: Login to your GTM account and note down the container ID.

Step-13: Click on ‘Connection settings’ to add your container ID:

Step-14: Enter your GTM container ID and click on the ‘Save’ button.

Step-15: Change other GTM settings according to your tracking requirements:

Step-16: Click on the ‘Activate Integration‘ button:

Step-17: Remove the GTM container tag code from all the pages of your website.

Note (1): Google Tag Assistant won’t work once you start using GTM within segment as it won’t be able to find the container code embedded on a web page.

Note (2): Do not activate Google Analytics integration within the segment if you are deploying Google Analytics via GTM.

Step-18: Use Google Tag Manager the way you normally do.

However, you will no longer be hard-coding data layers on your website.

Instead, you would track events via segment, and segment would translate the tracked events into the data layer so they can be used via GTM.

In this way, you can send the same events to multiple data sources instead of just GTM.