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Two-sided Market 52#
A two-sided market facilitates interactions between multiple interdependent groups of customers. The value of the platform increases as more groups or as more individual members of each group are using it. The two sides usually come from disparate groups, e.g., businesses and private interest groups.
Examples: Iconic Cases
How they do it: In the Amazon Kindle store, publishers, authors and other rights-owners can sell their content to Kindle users. Hence, Amazon is just providing the marketplace but does not have to provide the content itself.
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How they do it: In Payback’s case the two groups of customers in the two-sided market a the private consumers and members of the loyalty program and the vendors who reward their customers purchases. Payback itself has access to the individual customer data and can earn money from the businesses participating in their program.
Learn more about Payback →
How they do it: YouTube’s platform features a set of key stakeholders: Their users, creators, rights holders of music videos and copyrighted content, and advertisers. Reconciliating stakeholder needs in this ecosystem or multi-sided market is a key challenge for YouTube.
Learn more about YouTube →
How they do it: Salesforce offers different apps on its AppExchange platform. Customers of Salesforce may purchase access to apps published by third-parties. Thus, it can leverage a two-sided market, connecting its paying customers with paying third-party AppEchange publishers.
Learn more about Salesforce →
How they do it: Google’s search engine operates as a two-sided market, connecting websites and users who search for websites. Google does not provide any content but utilizes data to make sure that users with a specific search query find the website which can best answer their need / search. It also utilizes the data to allow website owners to target the user’s they want to attract on their websites.
Learn more about Google →
Below, the top industries for the pattern "Two-sided Market" are displayed, in order to get insights into how this pattern is applied across different industries. We've collected data from 18 firms using this pattern.
Top Industries
Information Technology
33% of firms using pattern
33% of firms using pattern
Services
32% of firms using pattern
32% of firms using pattern
Hardware
25% of firms using pattern
25% of firms using pattern
All Industries
Below, the pattern "Two-sided Market" is analyzed based on co-occurrence, in order to get insights into how this business model pattern is applied in combination with other patterns within the firms we studied.
Top Co-Occurrences
Leverage Customer Data
10 pattern co-occurrences
10 pattern co-occurrences
Digitization
7 pattern co-occurrences
7 pattern co-occurrences
Long Tail
6 pattern co-occurrences
6 pattern co-occurrences