How to Keep Costs Down And Curb Your Spending In A Double-Sided Marketplace
Cost control is important in all businesses, but when you’re trying to control both sides of a double sided marketplace it becomes essential.
In case you are not familiar with the term, a “double-sided marketplace” is a platform built for the seller and buyer to exchange value, often a product or service in exchange for payment.
Why A Double-Sided Marketplace Requires Precision
While this business model is a promising venture, it is extremely volatile, and for this reason, you have to be mindful of your spending on both sides. You need to be sure that you spend enough to effectively acquire potential buyers searching for this service, but you must also offset the costs of acquiring those consumers by curbing your spending in other areas.
At the same time, you must stay out of the “danger zone” each month. See why this is such a delicate balance? Don’t be discouraged- if you can make it work, your business will be successful.
Know your customer through extensive research
Research your local area, and leverage technology to drive supply and demand for a thriving business. Make use of apps to research your region, and observe your ideal customer’s interests and demands for your product or service.
Determine Your Advertising Budget
After examining your budget, determine what portion will be used for advertising. In addition to providing a customized budget and spending report, Tamme can also stretch your advertising dollars for maximum ad spend in your geographic region.
Consider The Cost Of Client Acquisition
It can be challenging to accurately measure how much it will cost to get in front of consumers looking for a particular service, and the wrong data can cause unnecessary waste. To keep your costs down, use the right resources to determine the supply and demand, and get in front of your ideal customers with strategically placed ads across a variety of channels.
Tamme takes the guesswork out of measuring how to allocate your marketing budget, and keeps your costs down by providing meaningful data with precision and data analysis. Tamme builds programmatically created ads, and makes adjustments after analyzing response to the imagery and ad features.
Tamme analyzes the data based on how two users are connected through interactions. From there, Tamme builds out very refined individual segments, which are used to measure the supply and demand in your neighborhood area precisely down to the postal code level.
Tamme helps you keep your marketing costs down by strategically spending on the areas with a positive response, optimizing your chances for success.
Identify Your Channels
Once you have examined all the possible expenses, evaluate which channels associated with your prospective customer’s account- these channels are usually in the form of social media, retargeting ads, email marketing, SMS notifications, and Push notifications. This will maximize your reach and ad spend, while minimizing your costs. Learn more about how Tamme can create effective channel combinations for the marketplace in your region.
Spend Strategically on Ads
Once you have determined your budget and the channels through which the budget is to be spent, you need to develop creative offers to convert new customers or move them further along your sequence. For example, if someone is trying to order a meal using an app, you can track their interaction, rather than someone just clicking on an advertisement. Learn more about how Tamme can run tests to understand user behavior in your marketplace and region.
Optimize Your Marketplace Data For Maximum Growth
If you are looking for an effective way to monitor your budget using a system specifically designed for double-sided markets, be sure to check out tamme.io to see how we can help you with analyzing marketplace data specific to you and your business, managing your expenses, automate your budgeting, minimize your advertisement expenses, and maximize your revenues.
Have a question about the tips shared in this article? Leave it in the comments below. Also tell us, what are your tips for saving money in a double-sided marketplace? Leave us a comment!