I am sorry for not being clear - Option 2 also uses Target and has Target metrics and reporting. You would still be using Target but instead of loading the offer from Target, you are configuring it in AEM on the component. I have updated the question.

While looking at documentation for personalization on AEM using Target, I can see 2 approaches:1. Import experience fragment variations into Target console and create an offer with it to replace HTML sections on the page (https://experienceleague.adobe.com/docs/experience-manager-learn/aem-target-tu...