Three Tricks to Advertise to Buyers and Sellers Simultaneously
The ambitious business model for a double-sided-marketplace can best be summed up as a platform where two sides benefit simultaneously. The small platform made up of two distinct user groups have the ability to supply one another with the benefits of a larger scale network at a fraction of the time, energy, cost, and resources.
Advertising in a double-sided marketplace should entice both sides, revealing benefits to take the entire enchilada to a new level at the same time.
Tip 1: Create a Network Effect
Social networking is popular because it allows for instant communication and results. Put a question out to your network and watch the influx of replies. The same is true regarding services, specials, promotions, and advertisements. Why not reach the most people possible with the least amount of effort? Enter: social media and the network effect.
There are two kinds of network effects – they are same-side network effects and cross-side network effects. Both can end in a positive or negative result depending on how you choose to leverage them. Facebook is an example of a same-side network effect because your friends are connected to you, which means they most likely enjoy the same types of things you do and you know how to effectively reach them. On the flipside, a cross-side network is more like a news website that has the potential to reach advertisers you don’t actually know yet.
The relatively low cost of social media and ease of use works with a variety of platforms and budgets. Account set-up is relatively painless. It’s fast, free, and – some might argue – even fun to create an account (or multiple accounts!) in an effort to reach the most customers with the least amount of work.
Tip 2: Showcase the Value for Both Sides
The reason AirBNB worked so seamlessly from the get-go was because the travel industry was in need of an overhaul. Hotel visitors were tired of paying $500 per night for a room when they could barely afford their rent or mortgage. On the flipside, houses were sitting empty and homeowners figured they were losing money if something didn’t change soon. Enter AirBNB. Now the traveler can rent an entire apartment or house for a fraction of the cost of a hotel room and the owner of the property makes a little something when they’re not using it. It’s one prime example about supply and demand worth modeling regardless of sector.
When advertising to both sides in this scenario, the trick is to make it mutually beneficial, a win-win for everyone. The value will pay for itself as a result.
Tip 3: Take Feedback Seriously
The only real way to know if it works is to try it, right? When launching your double-sided marketplace, be sure to encourage users to invest time and energy into supplying feedback with their experiences. The good, the bad and the ugly may come out and it would behoove investors and producers to take the comments seriously and, if necessary, find solutions before it hits the open market.
User experience is perhaps the most affordable, reliable and accessible way to gauge future customer satisfaction because the advertising occurs through positive - and negative - social interaction. When someone likes what you have to offer, they will share it with their friends and colleagues. Similarly, when they don't like the experience, they will share that experience, too. Aim for the best possible outcome and be ready to step up to the plate when alterations are required and the advertising will follow suit.
Knowing the rules of the road before you begin will help steer your double-sided marketplace in the path toward success. These tips will help you arrive safely.