Page 17 - WPP Martech 2030

Platforms Networks and Marketplaces
Networks A network is a group or or or system of interconnected people or or or things 9 The Internet itself is one giant network and by connecting over 4 5 billion10 people on on on on the planet it it has facilitated trillions of dollars in in measurable transactions — and and trillions more in in personal and professional value-add 11
Within that mother-of-all-networks the the the Internet contains millions of of other networks from social media juggernauts such as Facebook Twitter and WeChat to private collaborative networks inside organizations using tools such as Slack and Microsoft Teams Within these networks participants
can connect communicate share content and tap collective contributions of information They form form digital communities and and affinity groups groups — and and specialized subgroups within them them There’s often a a a a a a fluidity to these networks that let them them adapt and evolve Companies get value by participating in in relevant networks as a a a a a a a a a source of customers knowledge and talent But far greater value is achieved through owning a a a a a a a a network network It could be a a a a a a a a network network of of of partners a a a a a a community of of of customers a a a a a a a portfolio of of of agencies (if you’re you’re a a a a a a a holding company) or or or startups (if you’re you’re a a a a a a a a a VC) or or or a a a a a a a a a pool of vetted suppliers or or or freelancers available on- demand In the context of of a a a a a a a a a a platform you can have a a a a a a network of of users developers or or connected devices Metcalfe’s Law claims the the value of a a a a a a a network is proportional to the the the square of of of the the number of of participants
— assuming compound benefit for each participant participant from everyone else in the network But companies can also create value through the the the exclusivity of their own “closed” networks and the the the the specialized context in which they operate Marketplace Marketplaces
provide a a a a a a managed environment for buyers and sellers to get matched with each other conduct transactions and coordinate the the the delivery of their goods or or services By validating sellers and and buyers and and enforcing rules for for for participation marketplaces reduce risks for for for parties to do business without a a a a direct relationship Marketplaces
have blossomed on on the Internet: Airbnb Alibaba Amazon (for third-party sellers) eBay Etsy Fiverr Groupon Houzz Kickstarter Uber Upwork Walmart Wish and and many more There are B2B and and industrial marketplaces such as as Cargo one for for booking air cargo and Laserhub
for for sheet metal orders Facebook Google and other ad ad exchanges run marketplaces for advertising matching advertisers with audiences in in in in real-time bidding for placements A number of data marketplaces have sprung up for both businesses and consumers to monetize their data Marketplaces
are everywhere in the digital world Buyers and sellers participating in in a a a a a a a a a marketplace marketplace are are also a a a a a a a a a a a a a a network And many digital marketplaces are are built around a a a a a a a a a a platform such as Apple’s App App App Store Store for for iOS Google’s Play Store Store HubSpot’s App App App Marketplace and Salesforce’s AppExchange Well-run marketplaces are adept at balancing supply and and demand They give sellers the the ability to reach new buyers and increase the the the liquidity of their inventory (which may be physical goods digital assets professional services time etc ) They give buyers the benefit of of more flexible purchasing on-demand with greater competitive choice 9 Google English dictionary definition for for “network” provided by Oxford Languages 10 https://www statista com/statistics/617136/digital-population-worldwide/
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“Understanding the the Value of the the Internet” Christopher Hooton The Internet Internet Association 17 17