Info-Obesity and the New Digital Asset Classes
PART I: Info-Obesity and the Attention Economy
We’re drowning in information these days. By 2025, we’ll be creating a mind-boggling 463 exabytes of data every single day. Just to give you a sense of that, we send out 294 billion emails daily, make 5 billion searches, swap 65 billion WhatsApp messages, and post 500 million tweets. This flood of data is what we call 'info-obesity.'
The Attention Economy
Amidst this sea of information, the idea of the "attention economy" pops up. Herbert A. Simon, an economist, coined this term to explore how we manage information to make the best use of our attention, which is now seen as a precious resource. As information grows exponentially, our attention span becomes the bottleneck. Thus, human attention is now a prized and fiercely contested commodity.
Global Trends in the Attention Economy
With so much data coming at us, making decisions gets harder, leading to info-obesity and decision paralysis. Research from Microsoft shows our average attention span has dropped from 12 seconds to just 8 seconds since the early 2000s. This decline coincides with the rise of smartphones and digital distractions. The internet has transformed how companies compete for our attention, moving beyond traditional media to a complex online battle driven by personal data and targeted content. Many digital platforms are designed to be addictive, using psychological tricks to keep us hooked, like notifications and likes that trigger dopamine releases, reinforcing our habits and prolonging screen time.
Attention as a Crucial Asset
Recognizing that well-managed attention can be more valuable than traditional financial assets is crucial. As quality attention becomes harder to find, those who can focus and maintain attention will have a significant edge. Surprisingly, many companies still lag in the attention game, often wasting resources on generic messages in classic media. But that’s a story for another day.
In this era of info-obesity, our attention has become a scarce and precious resource. Managing attention has become a vital economic strategy. By learning to focus on what truly matters, we can boost our quality of life and economic value in a data-saturated world.
PART II: The Evolution of the Attention Market and Its Inefficiencies
Introduction
In Part I, we saw how attention has become a valuable asset in the digital age. Like any traded asset, there’s a market around attention, complete with its dynamics, innovations, and inefficiencies.
Market Evolution
As this market evolves, the value of attention shifts, creating opportunities for those who can spot and exploit these changes. Just like in financial markets, the attention market goes through phases of mispricing, where some channels or content formats might be undervalued or overvalued.
Platform Algorithm Evolution
Initially, platforms showed content in reverse chronological order, favoring timeliness over relevance. Then, they started prioritizing content based on engagement metrics like likes, comments, and shares to maximize user time on site. Algorithms began emphasizing content from users' direct connections, creating more personalized experiences but sometimes limiting content diversity. Today, advanced algorithms use machine learning to analyze user behavior and preferences, predicting and optimizing engagement. TikTok pioneered this latest evolution, matching content with user interests regardless of social connections, democratizing content distribution.
Game Changer - The Role of TikTok's "For You" Page
TikTok’s "For You" page inaugurated the interest-based focus of driving attention capture, presenting personalized content based on users’ habits and preferences. This model democratizes content reach and proved so powerful that it triggered other platforms to scramble to develop similar approaches. The result is fierce competition for user attention, with increasingly sophisticated algorithm strategies for optimizing engagement and content discovery.
Opportunities in the Attention Market
Each of these evolutionary stages has created new inefficiencies and opportunities in the attention market, shifting value among different types of content, creators, and platforms. Understanding these changes is key for companies aiming to optimize their engagement strategies and seize emerging opportunities in this dynamic market.
Example: Gary Vaynerchuk rchuk
Gary Vaynerchuk, or Gary Vee as he's known online, built his career on his uncanny ability to sniff out early mispricings of Attention. He kicked things off with email marketing, then moved on to Google ads, and then pretty much everything else. He’s probably laid down, in technical terms, what will be the new foundation of marketing rules from now on. On a more practical note, he’s also completely exposed the formal view of trading Attention and shown how the ability to navigate this trading will make or break companies and products from here on out.
Strategic Focus Areas
To succeed in the attention economy, companies should focus on creating content that resonates with specific interests rather than trying to appeal to a broad audience. Authenticity and relevance are key to capturing attention in specific niches. Investing time in understanding how different platform algorithms work can optimize content visibility and engagement. Staying updated on platform changes can offer a significant competitive advantage. Identifying and targeting niche audiences whose interests closely align with your brand or product can create a deeper and more meaningful connection with the audience.
Capitalizing on Undervalued Attention
In a world where attention is increasingly scarce, identifying and capitalizing on undervalued attention becomes crucial. Experiment with emerging platforms where attention may be undervalued. In the age of information overload, high-quality and valuable content stands out. Consider when and where your audience is most receptive to increase content effectiveness.
Respecting the Value of Attention
As attention becomes more precious, companies need to be more respectful of their audience's time and focus. Get straight to the point, remembering that the average attention span is now only 8 seconds. Ensure that every piece of content or communication provides clear value to the recipient. Avoid manipulative tactics designed to create dependency. Instead, focus on creating genuine connections with your audience.
Building Direct Relationships
While leveraging social platforms is important, building direct relationships with your audience is crucial. Collect and utilize first-party data to create more personalized and relevant experiences. Foster communities around your brand or product to create spaces where attention is freely given. Use email wisely to provide value and maintain direct connections with your audience.
Measuring Success in the Attention Economy
Traditional metrics may not fully capture success in this new landscape. Look beyond simple metrics like views or likes. Consider the depth of engagement, such as time spent, comments, or shares. Measure how well you maintain your audience's attention over time, including metrics like return visits or subscription rates. Track how effectively you convert attention into desired actions, whether sales, sign-ups, or other business goals.
New Metrics for a New Market: The Attention Arbitrage Quotient (AAQ)
As the attention market evolves, we need new ways to measure and understand how effectively brands and creators capitalize on emerging opportunities. I propose a new metric: the Attention Arbitrage Quotient (AAQ).
The AAQ measures a brand's or creator's ability to identify and exploit undervalued attention across different platforms and content formats. It takes into account factors such as:
A high AAQ indicates a brand that's adept at spotting and capitalizing on attention arbitrage opportunities, potentially leading to more efficient marketing spend and higher engagement rates.
By tracking their AAQ over time, brands can gauge their agility in the rapidly changing attention market and identify areas for improvement. This metric could become a key performance indicator for marketing teams operating in the new attention economy.
Conclusion
The shift to an interest-based model, combined with the increasing scarcity of attention, is reshaping the digital landscape. Companies that can navigate this new terrain - creating valuable and targeted content, respecting their audience's attention, and building direct relationships - will be well-positioned for success. In the attention economy, the goal is not just to capture attention but to earn it by providing genuine value. By doing so, companies can not only survive the age of information overload but thrive in it, creating meaningful connections with their audience and achieving sustainable growth. As we move forward, those who master the art of managing and respecting attention will find a significant competitive advantage in this new digital ecosystem.
PART III: The Death of the Follower and the Future of Creativity on the Web
Introduction
There are other dynamics at play: Jack Conte , early YouTube creator and today CEO of Patreon , discusses how the shift from follower-based algorithms to interest-based ones initially posed significant challenges for creators. They had to adapt their content strategies to fit algorithmic demands, often compromising their original creative visions. This shift required creators to "play the algorithm game" to maintain visibility and engagement, leading to frustration and a focus on trends dictated by algorithms rather than personal artistic goals. This balance between authenticity and algorithm optimization remains a key challenge for creators and brands in the evolving digital landscape.
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Early Web and Web 2.0
In the early days of the web, the monumental shift from Web 1.0 to Web 2.0 allowed artists to directly share their work with a global audience. The introduction of the "Subscribe" button on YouTube was revolutionary, transforming the ability of creators to reach and engage with an audience and build a following.
Struggling musicians playing to empty bars could suddenly set up on YouTube and use its potential to gain access and traction with an audience. The "Subscribe" button was pivotal, allowing creators to build a dedicated following and establish a distribution channel for their creative work.
YouTube's platform allowed creators to build substantial and engaged followings, experimenting with various forms of fan engagement, from selling merchandise and digital downloads to asking fans to contribute directly to their content. These experiences underscored the power of having true fans – dedicated supporters who actively engage with and support the artist's work.
Shift to Algorithm-Driven Feeds
The digital landscape has changed dramatically with the shift towards algorithm-driven feeds introduced by platforms. These changes have weakened the direct connection between creators and their audiences, making it harder for artists to reach their true fans and build sustainable businesses.
As the attention market shifts from follower-based to interest-based models but continues to drive pressure for attention, a significant gap emerges at the “bottom” of the chain, once again allowing for the direct and unfiltered relationship between the creators and their audiences. As platforms increasingly prioritize content over followers, creators have the opportunity to establish more genuine and direct connections with their fans, bypassing traditional algorithmic constraints. This transition allows for deeper engagement and more meaningful interactions, fostering a new era of digital relationships built on direct support and authenticity.
Platforms Enabling Direct Relationships
In response to these challenges, Conte co-founded Patreon, a platform designed to enable creators to build direct financial relationships with their most dedicated fans. Patreon has grown significantly, supporting hundreds of thousands of creators and facilitating billions in transactions.
Looking to the future, there is potential for a resurgence of platforms and tools that prioritize depth of connection over mere reach. He points out the emergence of new companies focused on fostering true fan communities and providing creators with the tools to build sustainable careers without relying solely on ad revenue-driven models.
Examples: Patreon and Skool
Patreon
Communities as a New Asset Class
Communities also emerge from this shift as a valuable new asset class. These communities, formed through genuine and direct connections between creators and their audiences, offer sustained engagement and loyalty that transcends algorithmic changes. Unlike fleeting interactions driven by algorithms, communities provide stable, direct support, allowing creators to monetize their content more predictably. This focus on building and nurturing communities enables creators to maintain authenticity, foster deeper connections, and achieve long-term sustainability in the digital landscape.
Economic Characteristics of Community as an Asset Class
Communities, thus, ensure sustainable economic models through direct, meaningful relationships and consistent engagement.
Conclusion
The game continues at high speed and with significant shifts in business models and value equations. Whether heading down the Attention route or towards a community-driven model (most likely a combination of both), the key is contextual content at scale. This means producing a large volume of content that is specifically tailored to each platform and audience segment, ideally hyper-personalized, and that is where AI may be taking us.
PART IV: Missing the Boat
Introduction
The gap between traditional corporate marketing strategies and the dynamic, fast-paced nature of social media marketing is widening at speed. The general sense is that social media is evolving at warp speed while the ‘traditional’ is at a standstill – something’s gotta give. Many traditional companies misunderstand and underestimate the power of social media and fail to invest adequately in building their presence on these platforms. They often see social media as a secondary or tertiary marketing channel rather than a primary one.
Challenges of Traditional Marketing
Companies and corporations must immediately rethink their approach and fully embrace social media's potential to build stronger connections with their customers and drive business growth. They struggle with being authentic on social media. They tend to rely on traditional, polished marketing messages rather than engaging in genuine, real-time interactions with their audience. This lack of authenticity can alienate potential customers who are looking for more personal and relatable content. Many are still stuck in old marketing paradigms and are not quick enough to adopt new platforms and trends that could benefit their brand.
However, there is still a vast excessive reliance on "Vanilla" Communication: bland, generic, and safe content—which fails to capture the audience's attention. This type of communication does not stand out in the crowded social media landscape and thus does not engage the audience effectively. The need is for bold, authentic communication that reflects the true voice and personality of the brand. There will be a time when brands will have to take risks with their content to avoid being overlooked by potential customers.
Barriers to Adoption
Example: Tubi's Success
A prime example of successfully navigating this dynamic landscape is @Tubi, an American over-the-top content platform and ad-supported streaming service. Tubi has been making significant strides in the competitive streaming market, and its success can be attributed to several key strategies:
Tubi's success can be attributed to its ability to offer a vast, free, and personalized streaming experience that resonates with diverse audiences. Its rapid growth and ability to compete with major players like Disney+ demonstrate its effectiveness in connecting with and retaining its customer base.
The Need for Strategic Shift
For large corporations to remain competitive and relevant, a strategic shift is necessary. This involves:
By illustrating Tubi's innovative and successful strategies, the article provides a clear example of how adapting to new trends and effectively engaging with audiences can lead to substantial growth and competitive performance in the attention economy.
PART V: The Winner’s Game
Introduction
Whether heading down the Attention route or towards a community-driven model (most likely a combination of both), the key is contextual content at scale. This means producing a large volume of content that is specifically tailored to each platform and audience segment, ideally hyper-personalized, and that is where AI may be taking us. It involves understanding the nuances of each social media platform and creating content that fits those specific contexts. This approach allows brands to reach their audience more effectively and engage them on a deeper level. By producing a high volume of quality, platform-specific content, companies can ensure they are capturing and holding their audience’s attention in a meaningful way.
Conclusion
As the digital landscape continues to evolve, the slow uptake of new communication models by larger, established corporations represents both a challenge and an opportunity. By overcoming barriers to adoption and strategically embracing change, these companies can capture the full potential of interest-based engagement and thrive in the attention economy. The future belongs to those who not only adapt to but also lead the way in innovative communication strategies.
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