White Label Ad Server vs Development From Scratch: What to Choose

Even though the DSP segment is the largest market within AdTech at the moment, an ad server remains a crucial participant in the programmatic ecosystem, allowing the management of campaigns, storing and serving content, and collecting data.

However, to gain more control over this, companies usually go for their own ad server solutions, raising an important question. Is it better to choose a white label ad server or develop one from scratch?

To better answer this question, this guide provides a detailed comparison of the two options, helping you to discover which of them is better suited for your needs.

The Key Differences Between a White Label Ad Server and Development From Scratch

A white-label ad server is a pre-built ad server solution that can be personalised to an extent to match the look and feel of your brand.

Some businesses, like, for instance, Attekmi, also offer custom on-request feature development, so the platform can get fully tailored to your needs. 

In turn, the definition of development from scratch is pretty straightforward – you do everything on your own. Let’s review the key differences in detail.

Time to market

One of the main benefits of white-label AdTech solutions is quick time to market. The system itself is already ready; it only has to be customized. 

Therefore, instead of investing a huge amount of time and money into development from scratch, you can directly set up and launch your platform within a couple of weeks or even quicker, depending on the level of customization.

If you decide to build an ad server from scratch, the process will take months or even years. Yes, things depend on the list of functionalities, but you will still have to deal with development itself, design, testing, and other tasks. 

In terms of time to market, a white-label ad server solution is an undeniable winner.

Customization and flexibility

Since a white-label platform gets customized, it looks like it was developed by your brand. However, in terms of functionalities, the flexibility is often limited. 

Mostly, the capabilities offered depend on the provider, so you only have to accept the solution or try searching for a different one. On the other hand, some companies also offer personalized development.

Therefore, if you partner with the right provider, your white-label ad server solution will meet your needs in full.

As for development from scratch, you are in full control of everything and get an opportunity to create a unique competitive advantage. Thus, this seems to be a better option, depending on the white-label ad server provider.

Upfront and long-term investments

Choosing a white-label ad server platform means much lower upfront costs and manageable total operational expenses.

There is no need for you to hire a large engineering team. Besides, your AdTech provider is responsible for maintenance, updates, and other processes.

As for development from scratch, it requires much higher upfront costs, while the ongoing expenses can be pretty high as well. You will have to invest in talent, infrastructure, maintenance, regular upgrades, and more. 

And since the global AdTech market keeps growing (the generated revenue is projected to surpass $3,359 million by 2030), keeping your solution competitive can turn into a serious challenge.

Thus, white labeling is about lower risks and predictable expenses. Developing a platform from scratch poses higher risks, more investment, and volatility. You may even plan your budget comprehensively, but even a single unplanned situation can inflate it.

Fun Fact

A white-label ad server allows businesses to scale up during peak seasons and scale down, or add new clients, without needing to develop new technology.

Technical complexity

A trusted AdTech partner not only provides you with maintenance and updates but also delivers a comprehensive onboarding strategy to help you understand the platform’s operations and technical support to solve your queries.

This way, you can focus on your core tasks and strategy adjustments without going too deep into technical details. 

In turn, building an ad server on your own requires thorough expertise as AdTech is a complex sphere. Apart from enhancing your strategy, you will have to invest time in optimization, debugging, and other processes. And, obviously, you will also have to build your platform first. 

Considering this, white-label ad servers win again. 

Ownership

The greatest advantages of development from scratch are that you own everything, from technology, infrastructure, data, to intellectual property, and more. You become totally independent of third-party vendors and handle both the business and the engine running it. On the other hand, the responsibility is much higher.

As for white labeling, you operate the business, but you do not really control its “backstage”. You depend on the provider; however, you typically own business relationships, clients, etc. Modern solutions often offer a pretty high level of control, while the responsibility is much less significant. 

Custom development looks like a winner here, but everything depends on your goals and other factors like the required time to market.

Scalability

An effective white-label ad server platform will grow together with your business seamlessly. When you are ready, you can just start steadily expanding your operations.

In custom development, the opportunities for scalability are unlimited, but the company requires everything to be done or their own, requiring additional resources.

This way, white-label ad servers win in terms of scalability.

Risks and challenges to consider

Using a white-label ad server looks like a perfect decision, but let’s summarize the key risks associated with this option:

• You depend on a vendor 
• Customization opportunities are often limited 
• Your competitors may use the same technology

The best way to solve these challenges is to choose a trusted AdTech provider.

As for building an ad server from scratch, the main risks are as follows:

• Countless technical complexities
• Planned expenses may increase easily
• Long time to market with potential delays
• Highly specialized expertise is required
• Self-responsibility for maintenance and updates

What to choose?

To make a final decision, you need to consider all the factors outlined above. If you want to launch your solution quickly and with minimal expenses, a white-label ad server is a great choice; you only have to find the right AdTech provider. Prefer a business that frequently updates its solution with new capabilities.

Conversely, if you wish to prioritise full ownership and control, and are ready to combat technical complexities and resource-heavy processes, then development from scratch may be the way to go. 

However, if you have nothing else to offer to your clients while you are working on an ad server, consider choosing white labeling.

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