A two-sided market, also known as a two-sided network or platform, is a marketplace or ecosystem that brings together two distinct groups of users or participants, creating value for both sides through interactions and transactions. These markets are characterized by their ability to facilitate exchanges or interactions between the two user groups.

1. Buyers and Sellers: In a traditional sense, a two-sided market typically involves buyers on one side and sellers on the other. Examples include e-commerce platforms like eBay and Amazon, where buyers purchase products from sellers.

2. Advertisers and Users: In the context of digital advertising, platforms like Google and Facebook connect advertisers seeking to promote their products or services with users who consume content on these platforms. Advertisers pay for exposure to potential customers, while users get access to free or subsidized services.

3. Drivers and Riders: In the ride-sharing industry, companies like Uber and Lyft operate two-sided markets. Drivers offer transportation services to riders through the platform, and both drivers and riders benefit from the convenience and accessibility of the service.

Two-sided markets often rely on a business model where one side of the market may receive subsidized or free access, while the other side generates revenue or profits. These platforms aim to create a network effect, where the value of the platform increases as more users join, attracting more participants from both sides.

Effective management and balancing of the needs and interests of both sides are critical for the success of two-sided markets. Strategies such as pricing, incentives, and features are used to attract and retain participants on both sides, ensuring the ongoing growth and sustainability of the platform.