Alignment of incentives

January 29th, 2014

Every now and again I’ll get back into my Economics books, podcasts and relook at things from an Economics lens.

The lens is always good for looking at incentives, how are parties incentivised, what will they gradually move towards when incentivised that way.

We’ve been looking at our new product Nudge, at how our competitors bill and what their incentives were, it helped explain a lot.

We don’t onsell your data, if our product creates insightful data you maintain ownership.  Our competitors don’t, they want to onsell it, they have to as they have priced free and gone broad.  We’ve gone high value and charge upfront.

Data is accessible & actionable, we’re pushing the data we create to Ad Servers, so that our clients can then use this data for targeting as they need.  Our competitors have to get you to buy through them, this is their margin on top.

Our objectives are sustainable growth, the others in our space are looking for overnight scale to exit rapidly.  We want to hold our clients for a long period of time, the cost of change is too big for us and them.

In any market place, look at the incentives, what is it that’s going to dictate how a company acts.  Always insightful.

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