TMT(TECH MEDIA AND TELCO) DIGEST | Marketing

Attention Economy

What is the price for our attention?

The economy is simply defined by the supply and demand of any entity that determines the price at which it will be exchanged in society. What happens when supply is less than demand? The price of that entity goes up. Earlier I was naive in thinking “content” is supply and “attention” is demand. But today it’s the opposite, with limited people having access to information across various platforms, in the advertising industry, they are demanding and spending billions of dollars to get access to limited engagement and attention in this age of information overload. It’s not new but the Internet and the hyper-connected world have generated so much information that “content” production may still be expensive but it’s relatively cheap while the “price of attention” has risen much faster.

The basic need to pay attention voluntarily will require us to attract at least one of the 5 sensory organs. Collective attention that allows us to act and behave synchronously is also very powerful. This is a big reason newspapers were sought out globally, it made us know more about the world and feel relevant. We want to be accepted in our communities by adopting a common way of connecting, living, and sharing information. Great storytellers oral or written have always captivated listeners and some of those stories have crossed generations. Paying Attention helps us learn, understand and evolve with society.

While paying attention is essential to the growth of an individual, attention economy refers to the economic system around capturing people’s attention and monetizing it.

Sleep is our competitor — Reed Hastings, CEO of Netflix

The toxicity of the above statement from Reed Hastings depicts the world we live in today. Time is money and attention is scarce, that’s why maximizing engagement is key. While it’s hard to quantify the value of this economy, the growth of FANGA in the past 10 years is a testament to the potential. In 2021 alone, these companies increased their profits by 55%. According to the Industrial Internet report of GE, this economy could add US$10 to 15 trillion to the global GDP over the next few decades. Specifically in advertising, the Global Smart advertising services market report 2023 predicts the sector to reach $1.87 trillion by 2030 at a CAGR of 20.4%. On average, people are exposed to between 6,000 and 10,000 advertisements a day. Imagine the number of ads in the future as cars get connected, cities become smarter and homes become digital hubs. Business models capturing and monetizing attention flourished primarily because of the lack of regulations to protect users.

No one likes ads, especially when they cost your privacy. Hostility towards ad makers has risen. It’s the 4th marketing revolution as Mark Schaefer quoted in his book “The Marketing Rebellion”. We have seen the phasing out of cookies, and Apple devices seeking permission to share data and location for every app. EU and several other countries releasing their version of GDPR restrictions and more. Slowly the emphasis is shifting away from meaningless data monetization without the awareness of the owner of the data to capturing only that data, that creates value for the consumer.

Every platform today is trying to grab attention. On average a person spends approximately 7 hours on screens connected to the internet that’s equating to more than 5 billion days when extrapolated across all global internet users. Technology has evolved to monetize this space and is gradually not just changing us, but changing society. Algorithms are designed to understand browsing history and show content that would align with areas of interest. The influencers that you follow, because you are inspired, are paid by brands to monetize their following. Attention has become an asset in the new economy, quality doesn’t matter.

1. Social Media Platforms: Social media platforms, such as Facebook, Instagram, Twitter, and TikTok, thrive on user engagement. They employ algorithms and notifications to keep users hooked, constantly refreshing feeds and seeking validation through likes, comments, and shares.
2. Streaming Services: Companies like Netflix, Amazon Prime Video, and YouTube have revolutionized the entertainment industry. They rely on captivating content to maintain subscribers’ attention and encourage binge-watching behavior.
3. News Outlet: In an era of information overload, news outlets compete for attention by delivering eye-catching headlines and sensationalized stories, sometimes at the expense of accuracy and nuance.
4. Advertising Industry: Advertisers understand the value of capturing attention. They employ targeted ads, pop-ups, and other attention-grabbing techniques to influence consumer behavior and drive sales.

Language, color selection, action buttons, ad placements, etc are all done in a way to build an “immediacy effect” — the human psychological need to get immediate gratification.

The attention economy has both positive and negative implications for society. On one hand, it has enabled unprecedented access to information, entertainment, and connectivity. We can connect with people from around the globe, discover new ideas, and access a wealth of knowledge at our fingertips. However, the constant barrage of notifications, likes, and scrolling feeds can also lead to diminished well-being. The goal to monetize attention is leading to algorithms that get people addicted. Overuse of social media has seen a rise in mental health issues among teens.

“Social media platforms drive surges of dopamine to the brain to keep consumers coming back over and over again. The shares, likes and comments on these platforms trigger the brain’s reward center, resulting in a high similar to the one people feel when gambling or using drugs.” — Dr. Nancy Deangelis, CRNP, Director of Behavioral Health.

There is a need for a heightened level of self -consciousness to navigate today’s attention economy. Extra care by parents and teachers on teenagers to avoid these addictions. Regulators need to make firm policies on data privacy and what can and cannot be monetized. Being aware of the attention economy is a big step to enabling and empowering yourself in making the right choices. Binge-watching no matter how tempting it may be, it doesn’t take long to realize you can no longer live without it which hampers face-to-face relationships. Limiting screen time, curating social media feeds, and consuming quality content from diverse sources can help reclaim control over our attention. To counter the effects of a fragmented mind, practicing mindfulness and developing focused attention with meditation and deep work sessions can enhance productivity and concentration. Regular Digital Detoxes are a much-needed respite to disconnect from the online world and connect with the world offline which can help restore balance. Being intentional about how you want to spend your time and attention, aligning it towards personal goals and values can not only help resist the addiction but also accelerate personal growth and momentum.

The attention economy has transformed the way we consume information, interact with technology, and navigate the digital landscape. While it presents challenges, we can empower ourselves by understanding its mechanisms and consciously managing our attention. By cultivating mindfulness, setting boundaries, and prioritizing meaningful engagement, we can navigate the attention economy with intention and lead more fulfilling lives in this digital age.