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I'm trying to find the best way to set up tracking for engagement based on my dynamic content (dynamic content blocks and Ampscript). I've set up a send log data extension to collect the different personalization variables and I'm able to successfully collect that data, however, I'm at a loss when figuring out how to connect those segments with the rest of my tracking. Can I use that information with the standard reports somehow or will I need to run data extract? Unclear about my next step in reporting on dynamic content engagement.

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You should use Impression Region feature:

Impression tracking allows you to track the performance of emails that contain content built by AMPscript or dynamic content in Email Studio. Contact your relationship manager for information on enabling this feature. When you create an email using AMPscript or dynamic content, you can give each region in the email a unique identifier. The system can use the unique identifier to track, segment, and report against data for each region

This feature not be enabled for the account you work on, in that case you need to log a ticket to start using Impression Regions.

Here is an example on how to add it in AmpScript:

%%[if emailaddr == emailaddr then ]%%
%%[
var @URL1,
set @URL1 = "https://help.salesforce.com/"
]%%

%%= BeginImpressionRegion("Banner Placement") =%%

To visit Help
<a href="%%=RedirectTo(@URL1)=%%" alias="Help">go here to login</a><br />
<br />
<br />
Check out the home page
<a href="http://marketingcloud.com" alias="home">here</a><br />

%%= EndImpressionRegion() =%%

%%[ else ]%%
This is the Default content!
%%[
endif
]%%

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