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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: 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: JCDecaux is working with public transport authorities or government entities to furnish a city’s streets and public spaces with furnishings (e.g. public benches) in return for obtaining advertising rights at these locations. These advertising spaces are then marketed to advertisers who are willing to pay for prime locations and transit media opportunities, while the respective city benefits from advertising design innovations and free or reduced-cost public services.
Learn more about JCDecaux →
How they do it: The AppStore functions as a two-sided market with app developers and corporations on the one side and customers / users on the other side.
Learn more about Apple iPhone/AppStore →
How they do it: Craigslist works as a two-sided market offering people to offer and search for various services and goods. The market participants can be both businesses as well as private individuals.
Learn more about Craigslist →
How they do it: Spotify maintains close relationships not only with it’s customers (paying and free users of the Spotify platform), but also with a set of crucial stakeholders, the rights holders of the content. It distributes approximately 70% of total revenue to rights holders, who then pay artists based on their individual agreements.
Learn more about Spotify →
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