We might be fortunate to live in an era of abundant and free entertainment like YouTube, Instagram, and TikTok, but there's a massive economy behind all that user-generated content that monetizes it for those companies and others.
This is often referred to as the attention economy -- the platforms hosting all that content are monetizing your attention. Keep reading to learn more about the attention economy.
Pros and Cons of the Attention Economy
The attention economy has become a significant component of the 21st-century economy and the way people spend their time, but it's not without some criticism.
One popular expression about the attention economy is that if the platform is free to use, then the user is the product. In other words, the people using the platform are sold to the advertisers to run the business, and user-generated content is simply a byproduct. Some users and watchdog groups are uncomfortable with the level of information platforms have on individuals, as well as their grip on time and attention, especially teenagers.
The attention economy goes hand-in-hand with social media, which has been accused of fostering screen addiction and making society more superficial and less connected, among other criticisms.
However, platforms like those above are also valuable for creators, influencers, and brands. The attention economy has grown to such a large size for a reason. It works, and any individual or brand can find and build an audience with the right kind of content.
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How the attention economy works in the real world
Let's take a hypothetical example of how the attention economy might work in the real world.
Say you have a pizza chain called Joe's Pizzeria. To get more business, you turn Instagram into a platform to get more attention. You might find some local food influencers to post content about your restaurant or advertise directly on Instagram, showing pictures of your pizza or advertising deals.
This business model has become common in the attention economy. Most advertisers on Facebook and Instagram are small and medium-sized businesses, and the targeting features serve them well since they can advertise to specific zip codes and segment demographically according to age, gender, income level, and other factors.
The debate over the attention economy is likely to rage on, but social media and the attention economy that powers it are here to stay. After all, there are over 3 billion daily users of Meta's family of apps, and that number grows every quarter.
These companies have gotten our attention and will continue monetizing it. There are options for individuals who want to opt out of it, but it is almost certainly here to stay.
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