CEO of a small business, Gordon Povey, talks to PR agency Represent about starting his own business and provides expert advice for start-ups ahead of the Startup Summit 2018.
Is the internet really broken? Are the days of direct on-line advertising numbered? Could there be a better way to pay for internet services? Are data marketplaces the answer?
There are companies emerging in the personal data space that propose data marketplaces as a revenue generating model – and they have collectively raised a lot of investment. The model assumes you are willing to share your personal data, they will sell your data for you – you get paid for this and, of course, these companies get a cut. The argument goes along the lines of, why should someone like Google get all the advertising revenues from your data. Instead you can use a third party to sell your personal data to advertisers and organisations in order to get a small payback.
Some of these companies claim that “The Internet is Broken” and this is a way to take control of your personal data and fix this. I don’t really buy that, I do believe that the current Internet has significant flaws, in part caused by the ‘free’ services model we have come to expect. However, the idea that getting paid to be advertised to is a potential solution, does not add up for me. There is evidence that we are unhappy with the current advertising model, that we would like improved internet services, but also that we are not willing to pay directly for most services that are currently seen as ‘free’.
Advertising is a very inefficient model, how many impressions of an advert result in an actual lead or a sale? There are three parties involved in the traditional on-line advertising model but only one of them gets a significant benefit – the adverting company. The seller and the consumer seem to get the poor end of the bargain but have limited powers due to a lack of competition. The consumer gets constantly bombarded with unwanted advertisements, the seller has to pay the cost of this inefficiency in order to gain on-line exposure to customers. An oligopoly exists in on-line advertising with Google and Facebook owning over 60% of the worldwide market and these companies hold monopoly positions with search and social media respectively. These ‘free’ internet services are the source from which our personally identifiable information (PII) is harvested in order to power the ad machine.
In a 2009 blog Seth Godin, the pioneer of permission marketing, was repeating a point about not needing many customers, but needing good loyal customers, to make a living, and he talked about “yelling at strangers all day trying to make a living” which pretty much sums up the current on-line advertising model, and he went on to say “You don’t find customers for your products. You find products for your customers.” which begins to describe an on-line brokerage model that I believe can be used to erode the on-line advertising model. Displacement of the current model will not happen overnight for a number of reasons; first – the on-line advertising oligopolies will defend their current lucrative position, secondly – although the model might be more efficient in the long run it will introduce some inital pain for the seller adjusting to a new model, and finally – it requires the creation of new services to efficiently join up buyers and sellers.
There are many examples of very successful brokerage companies working in niche areas. In the UK two of the largest online companies Money Supermarket and Skyscanner offer services that find their customers what they are looking for efficiently. Worldwide; Ebay, Uber, Airbnb & Kayak are all examples of highly successful companies running efficient brokerage models. Consider the conversion rate and value of a visitor to one of these sites compared to on-line advertising. It has been estimated that the average citizen is exposed to more than 5000 adverts every single day (J Walker-Smith, Yankovich Inc.), so how can you possibly gain attention in such a marketplace without a strong brand and a lot of marketing budget? Unfortunately, if you are a small company playing this game you may well spend all day yelling at strangers, and may not manage to make a living, even if you do have the best product.
Once we can capture rich data on the client-side we can begin applying brokerage, affiliate and referral models that will benefit the citizen across, not just niche areas, but all products and services. This will provide more efficient sales channels to sellers and ultimately erode the advertising revenues of the existing oligopolies. Machine learning and AI can be much more effective on the client-side where we can trust our that our personal data is only being used by digital agents working to our agenda (we may even use blockchain to make this transparent), as opposed to the current secret agents working to their own agenda.
We are very pleased to announce that Luke Harte has agreed to join Trisent as Chief Operations Officer.
Here are a few of the press clippings and also the full press release text is below:
- Trisent appoints new Chief Operations Officer, SBNN, 3rd May 2018
- Luke joins Kirkcaldy tech start-up, Trisent, Fife Today, 4th May 2018
- Blockchain Privacy Platform Trisent Names Luke Harte COO, BlockTribune, 4th May 2018
- New COO role for developer, The Courier, 5th May 2018
- Data privacy platform company Trisent names Luke Harte as COO, All Media Scotland, 8th May 2018
Full Press Release
SCOTTISH tech start-up, Trisent, which has been developing a product to help people protect and control their personal data, has appointed Luke Harte as its chief operations officer.
He previously founded and ran technology start-up Onyu, which focused on personal information security. Use of personal data by global companies is now top of the news agenda but Trisent and Onyu have been working on protection of personal data for some time.
Luke said: “The way our information has been held has always been vulnerable and never controlled by the owner. This is only starting to become common knowledge via social media issues and, of course, GDPR.
“Trisent’s ‘Dropbox’ for personal data allows the user to consolidate and take control of their personal information. There is clearly a growing need for this, but what I really like about Trisent’s approach is that they have put user trust and security at the core of their product.”
Luke started Onyu with co-founder Stuart Beattie in 2013 and created an app allowing individuals to securely store and share personal information with their contacts.
Gordon Povey, Trisent, founder and CEO, said: “I have known Luke for a number of years, initially through his work at Onyu, and he has also worked with us on a couple of projects.
“He has a great technology and entrepreneurial background, shares in our values around data privacy, he also understands our technology and the market challenges. So, to have him join our team is brilliant news and will add strength to the company.”
Professor William (Bill) Buchanan OBE FBCS CEng FIET is a Scottish computer scientist and world authority on cybersecurity. He currently leads the Centre for Distributed Computing and Security at Edinburgh Napier University and The Cyber Academy.
We are very fortunate to have Bill on the the Trisent Advisory Board. In this short video he talks about how GDPR will force changes on the internet and in particular in regards to personal data, ownership, trust, citizen rights and anonymity, with cyptography and blockchain technology coming to the forefront of the ‘new’ internet.
Scotland Means Business: Trisent
Business feature by Emer O’Toole in today’s National newspaper.
THE recent allegations that Cambridge Analytica harvested Facebook users’ information has made people more aware of the power and misuse of data. This is something Gordon Povey has been concerned about for years. His business, Trisent, aims to make data useful to the individual by putting it in one place and encrypting it.
“Disruptive Companies like ours will change the old data model.”
Following her popular blog post Blockchain for Beginners. We gave Joanne, the Trisent Office Manager (a non-techy) the challenge to explain the blockchain in a video lasting no longer than two minutes, and we think she has done a great job.
We also found this short video on “Blockchain and the Middleman” pretty good at explaining how blockchain deliver benefits.