When it comes to DSPs, advertisers have historically had no choice beyond the traditional multi-tenant setup. And while that model worked for some, it did not work for all. The single-tenant DSP model was developed to offer advertisers more options for customizability and control.
If a multi-tenant DSP is like an apartment for rent, the single-tenant model is like a single-family home. The former allows advertisers to “rent” a seat within a platform, whereas in the latter each client operates their unique bidder, much like owning a custom-designed home built to their specificities.
DSPs help to automate the ad buying process, making bidding decisions based on an advertiser’s set criteria – ultimately impacting that advertiser’s business. Agencies need DSPs that are designed to suit their needs – whatever they may be – to make both their business and their clients’ businesses more efficient.
Understanding the Traditional Multi-Tenant DSP Model
DSPs are traditionally built using “multi-tenant architecture.” This means that while all advertisers have individual seats in the DSP, they are all still working on the same platform. As a result, the DSP must maintain a single, large supply pool for those advertisers to execute their buys against.
The multi-tenant system largely benefits smaller advertisers who run buys with very little overlap. This works for DSPs, too, as they can have many smaller clients sharing the same supply pool.
This is ideal for advertisers who wish to set up a campaign with predefined parameters and let the backend manage the rest. But for larger advertisers, traditional DSPs may drive up costs as it can be very expensive to maintain a single, large supply pool.
The automation and ease of use with multi-tenant systems is particularly advantageous to smaller brands and agencies.
The Bidder-as-a-Service Model Drives Outcomes Through Customizability
Single-tenant architecture, like the bidder-as-a-service™ (BaaS) model, takes a different approach from traditional DSPs. Each individual client on the platform has its own “bidder,” separate from other users. The BaaS model allows advertisers or companies to pick their own supply source, white-label the DSP platform, and use their company branding to truly make it their own.
This unique setup is enabled by deep customization. The platform can be modified down to the smallest detail to meet clients’ needs. For example, each buyer can dictate their own supply pool using virtually anything available in the bid request, such as specific exchanges, publishers, audiences, or even IDs.
For buyers, this has a number of positive implications. BaaS offers more efficient rates because it only ingests auctions that the platform knows clients want to buy. It also opens up the possibility for increased scale, as the platform is able to target specific campaigns, audiences, deal IDs, and more.
Beeswax Is Designed to Meet Your Needs
There are benefits to both single- and multi-tenant DSP models, so it’s important for advertisers to determine which one best suits their needs. Either way, Beeswax has got it covered.
Beeswax coined the term “bidder-as-a-service” and created one of the first highly customizable single-tenant DSP models, making it an attractive option for brands and agencies that crave more flexibility.
For advertisers that desire less flexibility and greater automation, Beeswax also offers the traditional multi-tenant DSP setup.
To learn more about Beeswax’s bidder-as-a-service model and other offerings, fill out the contact form below.
