The Attention Economy: An Overview
Written by Alex Iskold and edited by Richard MacManus
It is no secret that we live in an information overload age. The explosion of new types of information online is a double-edged sword. We both enjoy and drown in news, blogs, podcasts, photos, videos and cool MySpace pages. And the problem is only going to get worse, as more and more people discover the new web. Consider the two charts below, illustrating the growth of the Blogosphere at large and also in number of posts published by tech news blog TechCrunch:
Because of this information explosion, we no longer read - we skim. The news that used to last a day now lasts just a few hours, simply because we need to pay attention to the new news. So it is becoming increasingly difficult to juggle all the news sources and keep on top of things. Which brings us to the law of information, stated first by Herbert Simon: the rapid growth of information causes scarcity of attention.
Economics of Attention
Things get more interesting when we realize that our attention crisis is not only our problem. It is also a big problem for news sites, blogs, search engines and online retailers. Our scarcity of attention hurts their economics. The web sites that contain content relevant to us have a big incentive to make sure that we find it. Consider this scenario. You navigate to a news site and start reading the headlines. What is the likelihood that you leave if you see an irrelevant headline? High. Another example. You go to Netflix and look at movie recommendations. What is the likelihood that you will stop browsing after Netflix shows you a movie you do not like? Again, very high.
When information is abundant, the false positives are very costly - they are basically deal breakers. Consumers happily leave sites, knowing there are a ton of alternatives out there. Unfortunately, this becomes a lose-lose situation, because if consumers rarely find satisfying experiences then retailers won't get consumer dollars. The idea behind the Attention Economy is to create a marketplace where consumers are happy, because if they are shown relevant information - then retailers are happy too, because happy consumers spend money!
Attention Economy Concepts
The basic ideas behind the Attention Economy are simple. Such an economy facilitates a marketplace where consumers agree to receives services in exchange for their attention. The ultimate purpose is of course to sell something to the consumer, but the selling does not need to be direct and does not need to be instant. For example news feeds illustrate the point well, since they ask for consumers attention in exchange for the opportunity to show him/her advertising. The Search engines are similar in that respect, because they show ads in exchange for helping users find answers online.
It is important to realize that the key ingredient in the attention game is relevancy. As long as a consumer sees relevant content, he/she is going to stick around - and that creates more opportunities to sell. Literally, the longer a user stays on a site reading news etc, the higher the chance that person will click on an ad. So the question is: how do you show the user relevant content? This is a complex problem that can be partially addressed by recommendation engines. However, it is not possible for sites to generate relevant, personalized content unless they know the user. To personalize, web sites need to know you: your browsing history, the books you like, the wines you drink, the music you listening to, etc. The more information the better.
Another key ingredient of the Attention Economy is privacy. The challenge is not just to protect consumers information, the challenge is to put the user in control of her information. The notion that in an Attention Economy, a user's information is up for grabs and can be bought and sold is misinformed. Instead, the user chooses what services he/she wants to receive, in exchange for their attention information. To help message these ideas and to protect consumers, Steve Gillmor and Seth Goldstein founded an organization called AttentionTrust.
AttentionTrust
Something as big as an Attention Economy needs a solid foundation. This marketplace needs participants who play by the rules, as defined by an independent entity. The founders of AttentionTrust succeeded in defining a simple, elegant, yet encompassing set of principles that define the rules of the game, by outlining the basic consumer rights in the AttentionEconomy:
- Property: You own your attention and can store it wherever you wish. You have CONTROL.
- Mobility: You can securely move your attention wherever you want, whenever you want to. You have the ability to TRANSFER your attention.
- Economy: You can pay attention to whomever you wish and receive value in return. Your attention has WORTH.
- Transparency: You can see exactly how your attention is being used.
So the principles define the rules for any company that wishes to participate in the Attention Economy. For example, it follows from the rules that services should provide a way for users to export their information. Another consequence of the rules is that a user should be able to request cancellation of their account and deletion of all their information. So these seemingly simple rules ensure that participants transact fairly and that businesses do not monopolize users information.
Technology of Attention
The concept and principles of the Attention Economy sound appealing, but they beg a question: is all of this feasible? Clearly many things need to fall into place for something as big as this to be born. Technology and the architecture of attention play an important role in facilitation of the marketplace. Ideally, a body of standards and protocols should be the technological foundation of the Attention Economy. Since these are early days of the conversation about attention, such standards do not yet exist. Here is an outline of what the Attention Architecture will look like (there is a detailed post on the topic from last year on my personal blog):
According to the diagram above, both implicit (clickstream) and explicit (bookmarks) attention is captured and stored in a database. The users have control over what attention capturing system to use. For example, AttentionTrust has created a Firefox add-on called AttentionRecorder which captures clickstream and redirects to a vault. The user also has a choice of where to store the data. A standard protocol between the attention capturing software and storage software ensures that users have the choice.
The user information that is stored in the database can be accessed by trusted services. These services, approved by the user in advance, have the opportunity to take advantage of the user information to deliver personalization. For example, Netflix can take advantage of the user data to personalize movie recommendations. Newsvine can use the user's OPML to personalize news and Google can use the data to prioritize and filter their search results. So from a technical point of view, the key to facilitating the attention marketplace is in decoupling of attention capturing, attention storage and attention recording services.
Challenges ahead
Despite a large number of issues and substantial complexity, the Attention Economy is coming. The economics of the web and information explosion are driving us towards it. Understanding the issues and laying down correct principles and technology are important, to ensure this future marketplace is healthy. Here are some of the important issues that need to be addressed:
- Silos: User information needs to be freed from proprietary silos
- Round Table: The industry needs to create a round table, to enable organizations to govern both the business and technical aspects of the attention economy (think Java Community Process).
- Education: People need to be educated about the value of their attention and the principles of attention economy. Avoiding privacy concerns will not work, instead they need to be tackled head on.
These challenges are far from trivial and will take time to resolve. Particularly, an industry round table is critical in order to expedite creation of standards and infrastructure for attention. The initiatives in several large web companies are on the way, but nothing has been formally announced. Also, a lot of smaller companies are well on the way to building attention services. They do not yet plug into a marketplace, but they will once the appropriate body of standards emerges.
So this is the current state of the 'attention' space. Please let us know how you think this will evolve and which are your favorite attention companies. Also let us know if you are interested in more posts on the topic.
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Wow, excellent article Alex, thanks.. This should be the next big challenge in RSS readers / startpages space as well. Practically, there's no difference in between getting lost in RSS feeds and getting lost in spam emails.
Well, I have to put in a plug for our company, The Attention Company: http://www.attnco.com. Our president, John Beck, wrote the book "The Attention Economy" a few years back, and we're working on multiple attention measurement tools...
Fascinating article. Certainly, the information overload problem is perhaps one of the biggest and most dangerous of our time, its consequences still going largely unnoticed.
The consequences stretch even further: the open-ended nature of the Internet makes it easy for us to find information sources which more or less match our predefined interests. While this is great, simultaneously it makes us tune out of different viewpoints, clicking away from news, opinions and perspectives that may not coincide with our own, or even oppose them upfront. Liberals will watch The Daily Show, conservatives The 1/2 Hour News Hour, both will mutually complain about the other one within their own forums but rarely resort to mutual exchange of opinions.
At the same time, people are more and more often getting their sources of information already digested and interpreted for them. Information overload means there's less time to look deeper into information sources, fact check or validate what's being said. We've got to evaluate the merit of its claims at face-value, which is often dangerous, and forces us to make decisiones without the minimum necessary information so as to make a good one rationally. The consequences of this are not only economical, but clearly political on a large scale.
Anyway, this all merits further discussion, but somewhat theoretically-minded thoughts like you've shown here are an important avenue for discussion. I must say I had to try real hard to break the habit and not skim through it. Cheers.
Interesting how fleeting your reference to google was. Their play in all this will be far more significant than search. In fact, search is the one thing I DON'T want bending to my attention habits.
I think it's ironic that you wrote such a long post about skim reading and information overload :)
Maybe it's worth considering more 'bite size' articles? I found myself reading the first 2 paragraphs, the first graph, and then the first sentence of about 70% of the rest of the article :)
Yeah, ironic certainly. Information overload works both ways: knowing when to read-not-skim or when to stop reading, and when to write to the point or develop at length. I'm still working on both, actually.
Perhaps context is the key? An academic paper outlining the cultural, social and economical consequences of information overloard may welcome lengthy and detailed development and analysis; a blog comment, on the other hand, should most likely be clear and to the point, deal with itself in a couple paragraphs tops.
Great Piece...Attention data also could be used to verify time spend on a particular site. The presence of such a verification system can open the door to a number of direct money for attention services (kinda like time share rental pitches in Vegas, where you get free show tickets for sitting through one of the time share presentations).
This whole attention thing is based on some assumptions which I find to be incorrect:
You navigate to a news site and start reading the headlines. What is the likelihood that you leave if you see an irrelevant headline? High.
Great post guys, it is an interesting analysis above all the Techcrunch's post and the problem of information overload: it is the same with spam, email and login information of all Web 2.0 service.
A great piece of writing. A wonderful example of how to open up the mind of your audience to infinite possibilities of how the future might be played out.
Very good article. Thank you! markus
I'm with Julian, I'm sure the whole post is great but I got overloaded after the first paragraph/graph and skimmed the rest...they irony...
@Julian / Aehso
Guys, we try to compress articles, but with some of the bigger issues its hard to paint the broad picture with short posts. Using example from information theory - some things are not compressible :)
Alex
@Stoicho M,
This is a really good point - showing you things based on things that you already like is dangerous because it kills novelty. A good recommendation engine, like Pandora, constantly introduces new things based on the things that you already saw.
The tricky part is measuring relevance. Once can hope that attention tools will recognize and through away completely irrelevant things, but also will maintain degree of novelty. But its a thin line to walk...
Alex
Very well capsulized article on the attention economy activities.
PS. I think you mean "explicit" when you wrote bookmarks.
Please write more on the subject.
@16 Thanks Peter - fixed.
Alex
I feel that people weight the value of information. For example, if someone you know usually says "dumb things", You probably will not listen to them often. Thus, we find our sites, our writers, our headlines we are interested in and focus our attention based on previous history.
It's a great post but ironic that you in an article where attention span took centerstage, that the piece itself was so long.
I do believe essentially that we are a people on the go...there is no turning back. "Sunday morning" readers as I call them are a thing of the past.
Media houses must recognise that fact but also bear in mind people who are genuinely seeking research information.
Great interesting post, thanks for providing interesting numbers of the increasing size of data available on the web.
I've always thought this exponential growth was the origin of all these web 2.0 tagging mechanism like digg it or del.icio.us.
I think the attention economy is at the heart of the new competitive game in media. It is leading to a three-way battle between search engines, social networks and recommendation engines as the most effective way of mass-aggregation and monetisation of consumer attention.
This is totally a non-skimmable post, so apologies for that. Read on if you care about media and the attention economy.
Given that consumer attention is scarce, there will be a battle to capture it and sell it to advertisers.
In the old media, that battle was fought by content providers. CBS slugged it out with ABC and NBC to get us in front of the TV, and the ratings winner walked away with the spoils.
In the new media, that battle will be fought by attention aggregators.
The most successful attention aggregator to date is Google. Like NBC or any TV network, Google’s core business is to makes money by capturing consumer attention and then selling that attention to advertisers
Where Google differs is in its ability to deal with the fragmentation of consumer attention. When we are online, our attention is literally fragmented across billions of webpages. Yet Google can capture each individual micro-fragment of attention, and as if that was not enough, it can find precisely the advertiser who is willing to pay the most for that micro-fragment.
Where does this ability come from? Basically because we use Google to navigate the web. When you search, the search results page captures your micro-fragment of attention, and Google sells that micro-fragment of attention to an advertiser who has bought the key words you used in your search. Whats more, the advertiser only pays if you actually bother to click. In addition, when you arrive on a content page, Google is incredibly effective at placing an ad on that page that is likely to be highly relevant to you.
The question is whether Google will be as effective at mass-aggregation of our attention in the future as it is at the moment?
Two other contenders for the battle to mass-aggregate exist. The recommendation engine and the social network. The interesting development is that search engines have a real flaw when it comes to rich media environments.
When the web consists of lots of text files (the online equivalent of news and magazine pages), then search engines are great: it is what they were built for.
However, at some point not too far in the future, the web will offer additional billions of minutes of Television, Film, Music and other rich media, and our total balance of attention will shift away from ‘mainly text content and text services’ to a more balanced mix of text, audio and video. How much time will we spend online on audio and video? In the off-line world, we spend more than 5 times as much time consuming TV as we do reading.
This is where we get to the meat. If we spend relatively more time on the web consuming audio and video, we will spend more time navigating audio and video. And search engines have a real problem in this realm.
Why? This is over- simplifying but search engines search on words. A digital video file is a bunch of instructions for arranging pixels on a screen. Not that helpful for a search engine. User generated metadata (tags etc.) is a way of adding words to the video or audio so search engines can search on it, but this is unlikely to provide the answer for billions upon billions of minutes of clips.
Two other options for navigation exist.
One is to leverage human recommendation, for example in social networks. We would find media by relying on friends in our network – as they find stuff, they recommend it to us. Social networks are already becoming vehicles for launching new content.
The second option is automated recommendation, based on transactions. This is how you navigate Amazon or iTunes – people who bought this also like this. It is instructive how many people don’t use search engines once they get to large content collections like iTunes or Amazon.
Both these options have proven to be highly effective in offering good navigation. The existence of the long tail proves the point.
So, in summary, the attention economy marks a new stage of competition in the media world.
Hi Alex & Richard you might like to read this post on how Google is creating the Attention Economy already.
http://www.vecosys.com/2007/01/26/is-google-building-the-attention-economy/
I skimmed this, doesn't look interesting.
Good article! As a participant on this attention economy, I would have to say that it's getting harder to get unique feedbacks from people nowadays, now that attention has become a secret commodity.
One answer to this issue might be to teach speed reading, a skill now almost forgotten. A trained speed reader can scan volumes of material with almost total retention.
Unfortunately it is very difficult to speed read from a computer screen. Web pages do not break into neat screen shots that can flash before a speed reader's eyes and a scrolling web page results in jumpy lines of text that can't be read with typical speed reading techniques.
I have high hopes for the various new digital book devices that have recently reached the market, but to my knowledge they do not contain a speed reading setting that flashes the screens of text at a predetermined rate.
If anybody is aware of a group that is addressing the issue of speed reading web available material, please point me in that direction - thanks.
Thank you Alex and Richard. Great article.
There's a real opportunity for the browser to become a broker in the attention economy. They can start by showing me stats about my web browsing.
Am I spending double the amount of time on Yahoo Games rather than a site I use for work? Which sites do I use often but have not bookmarked? What time of day do I use the web the most?
With that type of information, I can smartly manage my attention. Once Google Reader offered the trends feature, I used that info to cut my feeds down from 400 to about 250 now.
There is also a real opportunity for a search engine to make the jump over GYM and offer "discovery" aka personalized results. If someone cracks the code and creates an engine with personalized results so accurate it feels as if the engine is reading your mind or anticipating your steps, then they have a winner.
TL, DR.
Recuerdas q me preguntastede una empresa q tuviera buenas expectativas , pues aqui esta la nueevo YOUTUBE . Technorati
agrupa a blogeros y paginas 2.0 ha crecido este añó... , bueno con un poco de ingles... verás lo q te cuenta
I am glad I found this article, it gave me plenty food for thought.
To me, the attention economy described here is just a meta-economy and therefore simply postpones the problem of information overload. Currently, web 2.0 is taking over web 1.0 and soon a need for web 3.0 will emerge. Attention economy may help towards 3.0, but I'm afraid one cannot circumvent the laws of entropy and information simply by tricking, rearranging or reorganising information into successive meta-levels.
Evidence is emerging in 2.0: content sources that are not self-denying, that do not provide exceptions to the rules, no humor, no singularities are quickly reduced by the readers/consumers to 'background noise'.
I think a weak point in the description of the new economy is the modelling of the consumer, namely the hidden hypothesis that he is a constant. This is inaccurate. A reader who in the past was consuming the whole of e.g. a newspaper or a movie, has already changed and just skims through (or selects according to reviews, i.e. 2.0 level of information). I dare to predict that after 2.0 (or 3.0) his next transformations will escalate from distress and inability to choose where to draw his attention, to utter boredom and eventually to luddism or a total denial of the web as source of information or entertainment, *precisely because* everything will be 'relevant' by appearence, by nature, by authority or by law.
A totally relevant web or search result is similar to an academic textbook of science or mathematics - everybody hates them. Relevant and interesting are not the same thing. My philosophical thesis is that what makes something relevant and interesting is its difference (or even Derrida's 'differance') from its background. The perceptional equivalent is focusing on the "fly in the soup". In that sense, the most relevant search result is a *single* result, which at the same time makes the consumer most happy, demanding the least cognitive load. Having to choose between 2 or 3 alternatives always adds some spice, and therefore is acceptable if not enjoyable. But hundreds or thousands of google 'results' are definitely a no-no. A result is a result to a problem and so far we only see answers without necessarily being able to define the problems properly. The industry cannot create answers ad infinitum, hoping they will eventually match (or create) some of consumers' needs. It's a vicious circle.
Seekers of 3.0 perhaps should skip the attention economy and attempt something else, e.g. a relevance economy, or even a 'human person' economy, offering only a handful of alternatives or search results. Globalisation of economy no doubt has long strived for the same goal and has largely achieved it. The endless variety of products gradually converges into one OS, one iPod, twelve hollywood companies etc to rule them all.
Sooner or later this will lead to a big bang, because civilisation is an open universe. The web will oscillate fractally from order (everything 'relevant' according to attention economy) to chaos (present digg and youtube?), between information, disinformation, data and zeroes, just because this is the history of both collective civilisation and of individual human nature. In a systems theory approach, you cannot model humans, fuzzy uncertain systems, with linear economics. From a physics point of view, entropy increase and thermal death are certain.
It is very interesting to combine this article with the analysis of The Register regarding the costs of information search (http://www.theregister.co.uk/2007/02/12/company_data_storage/)
To sum up, we are approaching the day when the cost of *finding* i.e. creating results (or happiness!) will exceed the cost of searching for it. Isn't that a most liberating thought?
Correction (sorry, I am not a native speaker) - the last sentence in my post above should read:
To sum up, we are approaching the day when the cost of *finding* i.e. creating results (or happiness!) will be *less* than the cost of searching for it. Isn't that a most liberating thought?
You've got my attention indeed. Very interesting topic. Thanks for posting...
I wrote the Firefox extension for AttentionTrust. It's been a pleasure of working with Seth Goldstein and others concerned about attention. It's taking longer that I or any of us expected, but people are slowly waking up to the worth of their attention.
We are still waiting for the attention killer-app. The Firefox extension was great for recording data, but it has proved difficult to get people excited about installing something which has little out-of-the-box value. The most promising space now is in widgets; like MyBlogLog and the Lijit Wijit. (must pimp my own company!)
Perhaps it will take a "User's Union"?
http://www.wanderingstan.com/2006-10-19/a_union_of_users
-stan
Remember in the end it all comes down to simply supply and demand,
Leave it to corporate/bookish types to convert somthing as exciting as a "billion blogs" into diagrams that look like Operating System Layers, Network Layers and Hard Disc Diagrams. Yawn.
In first few paragrafs and ilustrations of the ideas supported by the grafs of the facts, I could understand without much difficulty what the writer is up to and is it usefull for me to read further and thus " continue " to INVEST MY ATTENTION" .
Went few more minutes this time rolling on fast as it was a lengthy text from my standards. Finally, again I gave more attention on other readers chronological also interesting responses and read some of these which were also short !!
very interesting article
I suppose the idea of "personal" is going to change and become more important as "public" becomes overly crowded.
Thanks for all your comments, they are great and insightful.
Even with this article we can see that there is a difference between news and analysis. We live in the world which increasingly revolves much more around news than around analysis. This is happening because the amount of information and amount of news is rising.
Yet, we also know that we need to pause and reflect on trends. The news are the points in the curve that shapes us in a much more profound way - the analysis curve. The trick is to figure out how to balance our time between living in the moment and reflecting back on the past days, weeks, months and years.
It seems that although we have been relying on ourselves to separate signals from noise in the past, we will need help of intelligent personalization technology going forward. We need filters. And if we can get software to filter information for us, then we can come back to doing what we are doing best - analysis.
Alex
Alex,
This is a fantastic post! I have been wanting to write a post on the attention economy for sometime (on my blog), but honestly I'm glad you beat me to it. This post was great! And there is no way you should have shortened it.
I'd love to hear more about this on R/WW. I'm particularly interested in the economics of this. I know you briefly talked about search engines showing ads in return for answers.
However, I think there is more to it ... in 'The Search' John Battelle says:
‚ÄúIn essence, Google and its competitors have created the first application to leverage the Database of Intentions in a commercial manner: paid search.‚Ä?
I believe how they (Google & Other Search Engines) leverage (without violating privacy) a user's attention (eg search phrase) to serve relevant ads is an important model for other attention web services to think about.
- Sean
In terms of managing your attention across multiple feeds, sites, etc - worth having a look at http://www.touchstonelive.com/. I tried an early beta but didn't stick with it. The new version looks pretty good - it's all about learning your attention preferences and telling you when stuff you want to know about arrives.
Cheers
Andrew
For the record: I read the entire article and skimmed through the comments.
I like the idea of the AttentionTrust, but I'm not sold on the concept of crafting a single identity. I would be more interested in having multiple personality banks, which could be filtered to share only select info - and those filter settings could be saved to and accessed from a logical url path.
Some interesting thoughts here. I feel the key to gaining attention is being relevant. And in a fickle, ever changing space where customer needs and demands keep changing, the brands that win will be the ones that adapt to the changing customer, and do so in ways that are relevant to the customer.
I couldn't help while reading the article but think: this sounds like a compelling deal to me. With assurances given by AttentionTrust, I think I'd like the idea of having, for instance, my clickstream recorded in order to get in return personalized services that help fight my current state of information overload.
Hi Alex,
Well I am replying to a blog post, possibly a first for me. Yep its Economics 101 and anybody doubting that is smoking something. I see it everyday, as I try to help traditional publishers navigate ths transition to an online world. Try renewing a subscription to a weekly print news magazine when all the readers got it days before from an RSS feed.
BTW, don't count those guys out yet, it maybe easier for old brands to get the new technology than for the new online only entrants to get a brand in the real world. But then thats my pitch as you know.
One thing thats maybe missed is the mental training (and the rewards therefrom) from really paying attention not skimming. I find it interesting how hard today it is to read a really good book when all day long I spend skimming. I re-read a Thomas Hardy book recently and he spent at least three pages describing the edges of Dartmoor before getting onto anything close to a story...tough but rewarding.
Bernard
Hi Bernard,
Great to see you here! Well, yes, this is the big problem. For the lack of better word, skimming is making us dumber and it is disturbing. A tough question is how do we avoid it? What do we do when faced with increasing amount of information?
Alex
Hi,
good article. but the notion is a little restricted compared to the original one propose by goldhabert.see this article for a refreshed version of the original concept.
http://www.firstmonday.org/issues/issue11_6/goldhaber/index.html
I'm also a researcher and working exactly on this notion of attention, but more specifically about the notion of social attention due to the development of this social aspect in our life (more collaborations, more communities, more social networks). The people who are interested by the notion of attention economy can read articles on my blog
http://nico.maisonneuve.free.fr/blog
Nicolas
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Our products are intrusively checked and specially packed to add a value to your gift. They are delivered in beautiful transparent packing enabling you to have a look at the colors combination and design of the shawls and preserve it with care. Our efficient team ensures your orders are executed within specified delivery period through a reliable and speedy courier at your doorstep .
OWN A PASHMINA
We have transformed this secret of Pashmina making from generation to generation which has enabled us in providing our customers with the best quality pashmina at affordable prices. Being among the original suppliers of shawls, we can guarantee you our matchless and supreme quality. After all owning Pashmina is legendery.
Our designs are ahead of times in terms of concept and fashion trends. Thus owning an 'AntiqueShawls INC product is a cherished treasure for a lifetime.
Its time you owned or gifted an www.antiquepashmina.com product !