Digital Branding & Multi-sided Platform Startups

This paper aimed to identify how digital branding can help multi-sided platform start-ups achieve success in the first two stages of the start-up life cycle. Digitisation has changed the business world and has created an abundance of opportunities as well as challenges. Research on branding focuses mostly on incumbent firms, neglecting to see how businesses that arise from digital business models utilise digital branding. One such specific type of start-up is the multi-sided platform. The unique nature of a multi-sided platform-based business model poses a challenge in branding. This challenge is what this thesis focuses on. Multi-sided platforms have to attract multiple sides to their platform creating a catch-22 problem. Therefore, multi-sided platforms are presented with the challenge to brand and market themselves not just to one group target audience, but to two or more simultaneously. Furthermore, the bi-directional nature of digital platforms such as social media, and the lack of control of digital information means that multi-sided platform startups, more than startups with other business models, are required to understand the nature of digital branding and consequentially the opportunities and challenges it brings for them. In total 11 people were interviewed to collect data on best and worst practices and to understand how current startups utilise digital branding. 3 branding experts were interviewed based on their experience with the branding of multi-sided platform startups and 8 industry experts from different industries and from different phases of the start-up lifecycle were interviewed on their personal experiences. Based on literature review the interview questions were based on three broad themes, namely Internal Branding, External Branding and Brand success. Findings detail among other things the complex nature of brand identity creation, internal process alignment, the importance of time and human resources, and the need for IT capabilities. Furthermore, specifically looking at the catch-22 challenge, the notions of focus and flexibility and storytelling are recurrent solutions presented for reaching different audiences. Finally, lack of consistency in the communication of the brand identity, lack of digital knowledge and skills in digital branding platforms, and finally the lack of specialised people are seen as crucial inhibitors of success.