Platform lock-in

Platform lock-in can occur in any industry that is dependent on other companies to go-to-market. As platforms achieve more and more market power, amassing control over eyeballs (in the case of advertising) and customers (in the case of commerce), advertisers and sellers are forced to give up more economic rent (in raw dollars as channel discounts and advertising fees, or as informational control in the form of loss of data.)

Platform lock-in creates significant go-to-market challenges for manufacturers. Over-dependency on monopsonistic advertising and distribution platforms results in diminished control over pricing, branding, and customer relationships, as these platforms leverage their monopsony power to dictate terms. The consequences are far-reaching: manufacturers face intense competition within a crowded marketplace, struggle to differentiate their products, and often incur high costs for visibility through advertising or premium placements.