Self-hosting is different in the context of tag management. It is a practice that allows your website to gain control over how you load the Tag Manager SDK and do it in a first-party context.
Two reasons why Self-hosting is a preferred option
It works best when you don’t want to add any externally hosted code to your page at runtime: Browsers consider externally hosted code that tracks websites as third-party data.. This is threatened for security reasons. To build a first-party context, hosting the code on your domain is the best option. More importantly this aligns well with browser restrictions.
2. You can also choose this when you want granular control over page load speed: Server-side tagging enables faster page load because it lets you choose what loads and in which order. All scripts and server tags need not load at the same time on your website. Some take more priority over the rest. An added advantage is now you can address the page performance of your website directly contributing to SEO rankings, which has been a major pain for marketers. Google Page Experience Update which started rollout from June 2021 uses Core Web Vitals as one of the signals for ranking.
Self-hosting allows you to use your preferred CDNs and minification strategies so you can optimize for fast delivery in critical site sections, as well as minimizing the number of round-trip requests required to load your page. This means that you can choose anything right from tags on GTM, Facebook, or any other third-party platform with Magic Pixel’s SDK.