***Editors Note: This piece was originally posted on Farmobile CEO Jason Tatge’s blog and we are reposting it here.
Every day at Farmobile, we talk with farmers, agronomists, innovators, and entrepreneurs about the enormous power in “truthing” hunches with data. The value is clear when the incentives are properly aligned.
While we believe in using innovative technologies to directly support our farmer customers, we also know that’s not the true game-changer for the industry. The bigger story is really about ownership: we allow farmers to own and control their data.
The implications of that ownership are not lost on the farmers we speak with, because they understand that when you own an asset, you have the right to sell it.
We are working side-by-side with farmers to create a new revenue stream for their business. It’s a novel idea that we think represents a new era for digital agriculture.
This century we’ve witnessed entire businesses being built from their users’ data, yet those businesses rarely give the data creators a share of the profits. Tech giants like Google have turned ‘data sales’ into a billion dollar industry before consumers were wise to the idea.
Many suggest that agriculture is the final frontier for digitization. Farmobile stands alone in our desire build a business where users are rewarded for their digital creations.
Rethinking the Google Model
Just two decades ago, Larry Page and Sergey Brin, the creators of the fastest and largest search engine in the world, knew that data was powerful. They built a multinational technology, and became masters of the universe by collecting more information than had ever been thought possible. Their success blew the lid off traditional marketing and launched transformational information sharing in the digital age.
Over the years, they “truthed” a lot of hunches. And they made a fortune.
Having amassed a ton of user data, the Google team created AdWords, an online service that allowed marketers to display ads linked to keywords in user’s search requests. Advertisers loved the idea that they only paid when consumers clicked on the ad word. In addition, the analytics provided by Google gave marketers never-before-seen insights and results about their customers.
Google revolutionized advertising. They forever altered an industry by changing the way companies marketed products, brands and services. They digitized advertising. Google’s growth skyrocketed, generating billions in cost-per-click revenues. The company grew to $90 billion in annual revenue and a $580 billion market cap.
Ironically, Google — which initially prided itself on never “selling out” to advertising — actually flipped the model on its head by turning its users’ interactions into the product. But, like most modern technology companies, Google alone benefited from the monetization of their users’ data.
Now this has become a generally accepted practice for the search business, as well as social networks and other internet services.
That model of selling customer data is a problem as it begins to move into other technologies and industries, like your internet service provider, cell phone and television manufacturers, John Deere tractors, and farm management software.
Too many of us are blindly accepting this practice as standard, but why?
Defining the Line: More Equitable Terms of Service
We believe that the time has come to update the thinking behind how customer data is used, and create a more equitable model. In this way, Farmobile’s business model is disruptive, potentially beyond even agriculture, because our focus is on sharing the revenue return from monetized data with the content creators themselves (i.e. f...
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