Following Facebook’s $19 billion dollar acquisition of WhatsApp, Reuven Cohen writes: In November 2013, a survey of smartphone owners found that WhatsApp was the leading social messaging app in countries including Spain, Switzerland, Germany and Japan. Yet at 450 million users and growing, there is a strong likelihood that both Facebook and WhatsApp share the majority of the same user base. So what’s driving the massive valuation? One answer might be users attention. Unlike many other mobile apps, WhatsApp users actually use this service on an ongoing daily or even hourly basis.
“Attention,” write Thomas Mandel and Gerard Van der Leun in their 1996 book Rules of the Net, ”is the hard currency of cyberspace.” This has never been truer.
WhatsApp’s value may not have much to do with the disruption of the telecom world as much as a looming battle for Internet users rapidly decreasing attention spans. A study back in 2011 uncovered the reality for most mobile apps. Most people never use an app more than once. According to the study, 26% of the time customers never give the app a second try. With an ever-increasing number of apps competing for users attention, the only real metric that matters is whether or not they actual use it. Your attention may very well be the fundamental value behind Facebook’s purchase.
In a 1997 Wired article, author Michael H. Goldhaber describes the shift towards the so called Attention Economy; “Attention has its own behavior, its own dynamics, its own consequences. An economy built on it will be different than the familiar material-based one.” writes Goldhaber.
His thesis is that as the Internet becomes an increasingly strong presence in the overall economy and our daily lives, the flow of attention will not only anticipate the flow of money, but also eventually replace it altogether. Fast-forward 17 years and his thesis has never been more true.
As we become ever more bombarded with information, the value of this information decreases. Just look at the improvements made to Facebook’s news feed over the years. In an attempt to make its news feed more useful, the company has implement-advanced algorithms that attempt to tailor the flow of information to your specific interests. The better Facebook gets at keeping your attention, the more valuable you become. Yes, you are the product. [Continue reading…]
To the extent that corporations are in the business of corralling, controlling, and effectively claiming ownership of people’s attention, the only way of finding freedom in such a world will derive from each individual’s effort to cultivate their own powers of autonomous attention.