SGS Brownbag Seminar: Jérémie Haese

How to seed a platform is a key managerial question. The growth in users on either side is driven by same-side and cross-side network effects. Using data from a platform connecting artists and industry professionals, we examine early-stage platform growth, focusing on network effects and acquisition strategies. User growth is driven by both same-side and cross-side network effects, with local effects playing a dominant role. We analyze trade-offs in acquisition strategies, comparing owned media (e.g., offline events), earned media (e.g., word-of-mouth), and paid media (e.g., online advertising). Our findings show that owned media is most effective, followed by earned and paid media. Counterfactual simulations highlight strategic considerations for platform seeding, offering insights into optimizing growth and engagement in two-sided markets.