3. Platforms & 4. Customers

“Platforms bring together individuals

and organizations so they can innovate or interact in ways not otherwise possible , with the potential for nonlinear increases in utility and value.”

Non

internet platforms:

•

Malls link consumers and merchants

•

N ewspapers connect subscribers and advertisers

1. Engage multiple sides of a market

2. Generate network effect ( chicken or egg problem )

Sometimes two sides need to come on board at almost the same time and grow together

• E.g. credit card users and merchants

The "chicken or egg" problem, also known as the "network effect," refers to the challenge of getting a new product or service off the ground when it relies on having a critical mass of users to be useful. For example, a social networking platform might not be very useful if it has only a few users, but it might be very useful if it has millions of users

Overall, platforms can solve the chicken or egg problem by providing a way for users and producers to create value even when the platform is in its early stages, and by using various strategies to attract and retain users.

Transactional: Amazon

Innovation Platform: GitHub

A transactional platform is a type of platform that facilitates transactions between buyers and sellers. It enables the exchange of goods, services or information. Examples of transactional platforms include:

• E-commerce platforms like Amazon or Alibaba, which facilitate the sale of goods and services online.

• Payment platforms like PayPal or Visa, which facilitate the transfer of money between individuals and businesses.

An innovation platform, on the other hand, is a platform that enables the development and commercialization of new products, services, or business models. It allows for the creation of value through collaboration, co-creation, and co-innovation. Examples of innovation platforms include:

• Crowdfunding platforms like Kickstarter or Indiegogo, which allow individuals and businesses to raise funds for new projects or products.

• Open-source platforms like GitHub or SourceForge, which allow developers to collaborate on and contribute to the development of software projects.

In summary, transactional platforms facilitate transactions and the exchange of goods, services or information, while innovation platforms enable the creation of new value through collaboration and co-creation.

Choose your market sides

solve the chicken or egg problem

deisgn your busines model

establish and enforce ecosystem rules

A set of techniques for providing a “tailor made” service

to the customer, e.g.,

• Interface customization

• Information (additional) to product

• Recommendations on other products

• Loyalty programs

Adaptability: User modifies explicitly some parameters for own use: Define bookmarks, choose language,

Adaptivity: : systems modifies parameters to user needs /recommendations)

In the context of e-commerce, the "long tail" refers to the large number of niche products or services that are available for purchase online. The term was popularized by Chris Anderson in his book "The Long Tail: Why the Future of Business is Selling Less of More."

The long tail is made possible by the low marginal cost and ease of distribution of digital goods, as well as the ability of e-commerce platforms to reach a global audience and offer a wide range of products. This has led to a shift away from the traditional model of a few best-selling products accounting for the majority of sales, towards a model in which a large number of niche products collectively make up a significant portion of the market.

The long tail has significant implications for businesses, as it allows them to reach and serve niche markets that may not have been accessible or profitable in the past. It also allows consumers to access a greater variety of products and services, which can lead to increased competition and innovation in the market.

Non-personalized

Demographic: based on age

Content based: based on conten´t: GPU, CPU both are computer realted, as well recommend RAM, HDD, SSD usw.

Collaborative Filtering (User-BAsed) : correlate user, similar user liked bproduct B, C, 1 user is also likes B, recommend him C.

Kowledege based - Examples: rules for financial service (if „risk averse“ and „income > Y“, then recommend product

Context-aware recommender systems: These systems take into account the context in which a recommendation is being made, such as the user's location, time of day, or current activity. They can use this information to make more relevant and personalized recommendations.

For example, if a person is asked to estimate the price of a car based on a description of its features, they may be influenced by the first price they see, even if it is much higher or lower than the actual market value of the car. This can lead to an overestimation or underestimation of the car's value, depending on the initial anchor.

The anchoring effect can have significant consequences for decision-making, as it can lead people to make judgments that are biased or irrational. It is important to be aware of the anchoring effect and to try to consider a wide range of information and perspectives when making decisions, rather than relying too heavily on a single anchor.

Decision about_

Price: Strategy, tactics, (effort or time)

Product: branding, product desing, warranties, tangibler or intagible

Place: Refers to providing customer access

Considers providing convenience for consumer.

Promotion: Communication, PR, advertisment, sales promotion

More targeted

lower costs

performance metics,

SEO,

SEM, search engine marketing

SEA search engine Advertising

affiliate marketing

email marketing

web analytics

online advertising

Mille = Thouse or CPT Cost per thousand

the advertiser pays the publisher a set fee for every one thousand impressions

pay per click, cost per click

advertiser pays publisher per click

Pay per action / advertiser pays publsiher only when the user performs some action ( make purchase, sign-in), commissionm based model

: how many times the ad was viewed

Reach : how many people saw the ad

CTR [Click Through Rate]: total number of people who click

an ad / total number of people who view an ad

total number of people who take an action

/ total number of people who click an ad

: (Revenue investment Cost)/Cost

[Return on Ad Spending]: Revenue/Cost

bid : the maximum amount willing to pay for a click on the ad

ad relevance : based e.g. on keyword match

Landing page experience : how useful the website an ad links to is to the person who'll see it. Estimated based on:

no, it offers CPA bidding that automatically sets cpc bids trying to archieve a target cost per action.

Conversion rate optimization

It represents the percentage of visitors who enter the site and then leave ("bounce") rather than continuing to view other pages within the same site.

links zu amazon z.B. - merchant gets additional channels at low costs, for the affiliate: additional revenue stream

An affiliate is a person or company that promotes the products or services of another company in exchange for a commission on any resulting sales.

Customer Lifetime Value