Learn how to decide the best approach for your AdTech platform development by weighing the advantages and challenges of each option.
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The global programmatic advertising market is experiencing unprecedented growth. With ad spending forecasted to reach $965 billion by 2028, compared to $740 billion in 2024, the need for efficient and scalable programmatic platforms has never been higher. Businesses face a critical choice when developing their ad tech solutions: in-house development, outsourcing, or leveraging a white-label solution. Each option has its benefits and challenges. Selecting the right path depends on your company’s needs, resources, and long-term goals.
What is a Programmatic Platform?
At its core, a programmatic platform is a software solution designed to automate the buying and selling of digital ad inventory. It uses algorithms and data to target audiences efficiently, optimizing ad performance across various channels. Developing such a platform requires substantial technical expertise, infrastructure, and planning for businesses that tap into the fast-evolving world of programmatic advertising.
To make an informed decision about which development approach to choose, it’s crucial to understand the three main paths: in-house development, outsourcing, and white-label solutions.
The Rise of AdTech Platforms
The digital shift in advertising has sped up. Programmatic ad platforms are now key to modern marketing. The global AdTech market will soar. Tech advances and a need for data-driven ads will fuel it. AdTech platforms let organizations deliver personalized ads. They can tap into new markets and stay competitive in a fast-changing industry.
However, building such a platform is a significant feat. It requires careful planning, substantial resources, and a clear understanding of available development approaches.
Understanding the Development Approaches
Before diving into the specifics, let’s define the three primary approaches to developing an EdTech platform:
- In-House Development. Building the platform using your internal team.
- Outsourcing. Hiring an external team or company to develop the platform.
- White-Label Solutions. Customizing and branding an existing platform developed by another company as your own.
Each approach has unique advantages and challenges, which we’ll explore in detail.
In-House Development. Full Control, Higher Costs
In-house development means that the programmatic platform is built entirely by internal experts employed by your company. These may be existing employees or new hires who specialize in programmatic technologies.
The entire process, from strategy to implementation and maintenance, is handled internally without external help.
When to Choose In-House Development?
- Complete control. Businesses that want full control over their project’s progress and team members often prefer in-house development. This control extends to every platform aspect, from design to execution.
- 24/7 support. If your platform requires continuous support, in-house development may be the best option. You can guarantee that a team will be available to solve any issues at anytime.
- Infrastructure maintenance. Companies with the infrastructure and resources to support a programmatic platform are well-suited for in-house development.
- Internal expertise. If your company already has a team of developers, testers, and other essential professionals with knowledge of AdTech, in-house development might be a natural choice.
- Long-term investment. Building an in-house platform makes sense for businesses ready to make a significant long-term investment in finances and time.
Nuances to Consider
- High costs. In-house development can be prohibitively expensive for many companies, especially smaller ones. Hiring experts, purchasing tools, and maintaining the infrastructure requires a significant financial commitment.
- Time-consuming. Developing a platform from scratch takes time, often over a year, for full development.
- Technical expertise. You must assemble a highly skilled team, including developers, account managers, and testers. Recruiting these experts can be a lengthy process, further delaying the launch of your platform.
In-house development gives you complete control but is both time- and resource-intensive.
It’s best suited for companies with the financial resources and in-house expertise to handle the complex tasks of building and maintaining a programmatic platform.
Outsourcing. Cost-Effective, Less Control
Outsourcing involves hiring an external company or team to handle the development of your programmatic platform. This can range from outsourcing parts of the project (e.g., the coding) to the entire development process, including testing and deployment.
When to Choose Outsourcing?
- No time to build in-house. Outsourcing is a viable option when you don’t have the time to assemble a complete in-house team and need the platform built quickly.
- Lower initial costs. Although outsourcing is not cheap, it is generally more cost-effective than in-house development, mainly because you don’t have to invest in recruiting and maintaining a full-time internal team.
- Access to expertise. Outsourcing allows you to work with experienced teams familiar with the nuances of AdTech and programmatic advertising, reducing the risk of errors during development.
- Focus on core tasks. Outsourcing allows you to focus on marketing, business strategy, and other essential operations while a third-party provider handles the technical side.
- Cost-effective. Companies with tight budgets that can’t afford to hire and train new employees may find outsourcing more cost-effective. External providers already have the tools and expertise necessary for development.
Nuances to Consider
- Less control. Limited oversight over the development process and team.
- Communication challenges. Possible language barriers and time zone differences can hinder collaboration.
- Dependency. Reliance on an external party for updates, maintenance, and support.
- Quality assurance/ Ensuring the outsourced team meets your quality standards requires diligent management.
- Longer time to market. Outsourcing can save money, so coordinating with an external provider may lead to slower communication and longer project timelines.
Outsourcing is ideal for businesses with limited resources but requires clear communication and trust in the external team to achieve desired outcomes.
White-Label Solutions. Fast, Cost-Effective, Limited Customization
A white-label solution is a pre-built programmatic platform developed by a third party that you can rebrand and customize for your business. White-label solutions are ready, allowing you to launch quickly without investing in building technology from scratch.
Bidscube, for instance, offers white-label platforms that can be launched within two days, allowing for an efficient go-to-market strategy.
When to Choose White-Label Solutions?
- Fast time to market. White-label solutions are the quickest way to get a programmatic platform up and running. With limited customization, the platform can be ready to launch within days or weeks.
- No development team. White-label solutions are perfect for companies without in-house developers or the desire to invest in hiring and training a new team. The provider handles development and maintenance.
- Lower costs. A white-label solution is more affordable than building an in-house platform or outsourcing development. The core product is already built, reducing costs related to development and testing.
- Risk reduction. Since the platform has already been developed and tested, the risks of glitches or bugs are minimized. It’s a reliable, stable solution ready for immediate use.
Nuances to Consider
- Limited customization. While you can brand the platform, deep customization may be restricted.
- Shared technology. Competitors may use the same underlying platform.
- Dependency on provider. Relying on the provider for updates, security patches, and new features.
- Ownership concerns. You don’t own the underlying technology, which may impact long-term strategic value.
- Competition. Since white-label platforms are available to multiple companies, there’s always the risk that your competitors use the same underlying technology. I
White-label solutions are an excellent choice for companies that need a fast, cost-effective solution with minimal development efforts.
Cost-Benefit Analysis
Understanding the financial implications is crucial when choosing a development path.
In-House Development
- Initial investment. High costs for hiring talent, purchasing tools, and infrastructure setup.
- Time to market. Typically, it takes over a year, delaying potential revenue.
- Ongoing costs. Continuous expenses for maintenance, updates, and team salaries.
- Risk factor. Higher risk due to potential delays, technical challenges, and market shifts during development.
Outsourcing Development
- Initial investment. Lower than in-house but still substantial, often up to $500,000.
- Time to market. Depending on the external team’s efficiency, communication issues may cause delays.
- Ongoing costs. Costs for future updates and possible dependency on the outsourced team.
- Risk factor. Moderate risk due to less control and potential quality issues.
White-Label Solutions
- Initial investment. Significantly lower costs vary based on customization and provider.
- Time to market. Fast deployment, often within weeks or days.
- Ongoing costs. Subscription fees and costs for additional features or support.
- Risk factor. Lower risk with a proven platform and ongoing provider support.
Comparing the Approaches
Why Bidscube’s White-Label Solution?
Bidscube provides a highly competitive white-label platform tailored to the specific needs of advertisers, publishers, and RTB partners.
The customizable platform can be deployed under your brand in just two days.
Key Features of Bidscube’s Solution
- Rapid deployment. The platform can be ready under your brand within two days.
- Market-tested technology. Fully vetted and proven in real-world applications.
- Brand ownership. Operate under your brand, giving the appearance of a proprietary platform.
- Exclusive infrastructure. Your platform runs on dedicated infrastructure and is not shared with other clients.
- Total access and customization. Enjoy complete access to the platform with the ability to tailor settings for different users.
- Integration flexibility. Supports various types of integrations and custom options.
- Competitive advantage. Customization capabilities allow you to implement unique features, giving you an edge over competitors.
- BidsCube Community. Access to a network of premium publishers and advertisers, presented to your partners as your own.
- Cost efficiency. Offers one of the most affordable white-label solutions.
- 24/7 support. Dedicated support ensures smooth operation and prompt assistance.
Benefits
- Source anonymity. Using Bidscube’s platform remains confidential, maintaining the illusion of an in-house developed platform.
- Business simplification. Eliminates many legal and operational hurdles, as Bidscube manages the platform’s compliance and technical aspects.
- Customization potential. Ability to modify reports, UI elements, and integration types to suit evolving needs.
- Resource optimization. There is no need to invest heavily in a development team or infrastructure.
- Focus on growth. It lets you concentrate on marketing, content development, and expanding your user base.
For those concerned with privacy, Bidscube’s infrastructure is secure and isolated, giving clients peace of mind about their data.
Making the Decision
Choosing the optimal path depends on your organization’s priorities:
- If complete control and proprietary technology are paramount, and you have ample resources, in-house development is the way to go.
- Outsourcing might be suitable if you aim to balance control with cost savings and effectively manage an external team.
- If speed to market, cost efficiency, and minimal resource allocation are your main concerns, a white-label solution like Bidscube offers significant advantages.
Overall, take a look at your objectives, resources, and plans. After comparing different development approaches, you will soon see which is the best fit. If you don’t want to go through the entire research process, choose the ready-to-operate option.
Contact us today for a consultation and discover how our programmatic advertising solutions can help you achieve your marketing goals.
Our tech staff and AdOps are formed by the best AdTech and MarTech industry specialists with 10+ years of proven track record!
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