Attention Economy
Attention Economy is a relatively new term that is based around the concept of attention being a scarce commodity in today’s information overloaded societies. It describes certain promotional techniques that can be used by both individuals and business’s in an online environment where “the rapid growth of information causes scarcity of attention” (Iskold, 2007). Previous generations had far fewer information providers vying for their attention with traditional media sources such as newspapers and television accommodating most of our needs. “The Web's scarce resource is attention, because there is so much information out there, and everyone has so little time to look at it” (Gauntlett, 2004). The primary focus in an attention economy is to increase and maintain an audience, which will hopefully in turn form the basis of a returning customer base. Some see this model as the future of world economics in an ever growing networked society. Michael Goldhaber was one of the first proponents of the theory back in 1997 when he wrote “As the Net becomes an increasingly strong presence in the overall economy, the flow of attention will not only anticipate the flow of money, but eventually replace it altogether”(Goldhaber, 1997).
Marketers have been attempting to get peoples attention since the very beginning of commerce. In a similar way, successful online companies such as Google, eBay and Amazon have sought people’s attention for the purpose of exposing them to advertising material provided by a third party. By attracting eyeballs, the companies are then able to act as brokers between advertisers and consumers. Most online streaming music applications work in a similar manner; they use the availability of music as the primary lure and then sell advertising space (including embedded audio tracks) to marketing companies.
In the online world of streaming music, Spotify and Pandora are two of the main players in a field of numerous competitors with each representing the two most common methods of attracting and maintaining audience numbers. Spotify offers a comprehensive selection of music whereas industry veteran, Pandora, aims to provide a more personalised experience with radio stations that intuitively create playlists based on users individual tastes. Each type of model has its fans and clearly demonstrate the different ways people like to listen to music: some in proactive manner whereby they dictate what they listen to and others who are more submissive and willing to have playlists automatically generated around their tastes. With music already have a huge worldwide market, online steaming services not only must compete with each other for attention, but also the traditional free to air radio broadcasters as well as the digital download market dominated by iTunes and Amazon.
Spotify offers a basic subscription model that generates revenue through the use of banner advertising as well as embedded audio commercials that play approximately every 20 minutes. These commercials can be a slight annoyance to some users however they are relatively standard in most “freemium” modelled streaming sites and can only be avoided if a premium account is purchased.
Spotify attempts to attract new users as well as maintain the attention of existing users by using a variety of engaging features and promotional techniques.
These include:
When Spotify teamed up with Facebook in September 2011, it opened itself up to a far greater audience with much of its subsequent growth directly attributed to the partnership. (Mulligan, 2012). Although the decision has recently been reversed, such was the integration that for a while users could only join Spotify through Facebook as a Facebook user (Resnikoff, 2012). Aside from the vast increase in the brand’s exposure, the integration allows users to see what their friends on Facebook are listening to and provides the option to have those music choices appear on their news feeds. The Spotify Facebook page has close to 4 million followers and not only offers a link to the app, but also provides a variety of music related content such as new album releases, competitions, giveaways and user driven polls. Celebrity tie-ins, where famous musicians create Spotifty playlists, also work to keep user interest and engagement high.
Spotify uses first person language when communicating to engage the user with the programme. The programme “learns” the types of music the user likes through profile building from previous searches, and in turn recommends music from similar genres and artists. It also allows for users to submit reviews of albums as well as providing professional reviews from major publications such as Rolling Stone and NME Magazine.
Attention Economy is a relatively new term that is based around the concept of attention being a scarce commodity in today’s information overloaded societies. It describes certain promotional techniques that can be used by both individuals and business’s in an online environment where “the rapid growth of information causes scarcity of attention” (Iskold, 2007). Previous generations had far fewer information providers vying for their attention with traditional media sources such as newspapers and television accommodating most of our needs. “The Web's scarce resource is attention, because there is so much information out there, and everyone has so little time to look at it” (Gauntlett, 2004). The primary focus in an attention economy is to increase and maintain an audience, which will hopefully in turn form the basis of a returning customer base. Some see this model as the future of world economics in an ever growing networked society. Michael Goldhaber was one of the first proponents of the theory back in 1997 when he wrote “As the Net becomes an increasingly strong presence in the overall economy, the flow of attention will not only anticipate the flow of money, but eventually replace it altogether”(Goldhaber, 1997).
Marketers have been attempting to get peoples attention since the very beginning of commerce. In a similar way, successful online companies such as Google, eBay and Amazon have sought people’s attention for the purpose of exposing them to advertising material provided by a third party. By attracting eyeballs, the companies are then able to act as brokers between advertisers and consumers. Most online streaming music applications work in a similar manner; they use the availability of music as the primary lure and then sell advertising space (including embedded audio tracks) to marketing companies.
In the online world of streaming music, Spotify and Pandora are two of the main players in a field of numerous competitors with each representing the two most common methods of attracting and maintaining audience numbers. Spotify offers a comprehensive selection of music whereas industry veteran, Pandora, aims to provide a more personalised experience with radio stations that intuitively create playlists based on users individual tastes. Each type of model has its fans and clearly demonstrate the different ways people like to listen to music: some in proactive manner whereby they dictate what they listen to and others who are more submissive and willing to have playlists automatically generated around their tastes. With music already have a huge worldwide market, online steaming services not only must compete with each other for attention, but also the traditional free to air radio broadcasters as well as the digital download market dominated by iTunes and Amazon.
Spotify offers a basic subscription model that generates revenue through the use of banner advertising as well as embedded audio commercials that play approximately every 20 minutes. These commercials can be a slight annoyance to some users however they are relatively standard in most “freemium” modelled streaming sites and can only be avoided if a premium account is purchased.
Spotify attempts to attract new users as well as maintain the attention of existing users by using a variety of engaging features and promotional techniques.
These include:
- Consistent Branding across all platforms
- Social Interaction via links to Facebook and Twitter
- First person language used when communicating with the user in an attempt to personalise the users relationship with the app
- The application “learns” the types of music the user likes through profile building from previous searches, and in turn recommends music from similar genres and artists.
- Allows users to submit, as well peruse reviews of albums by other users as well as professional reviewers from major publications such as Rolling Stone and NME Magazine.
- 80 apps including timed lyrics that allow for users to sing along
- Far greater selection of music tracks than any competitor,
When Spotify teamed up with Facebook in September 2011, it opened itself up to a far greater audience with much of its subsequent growth directly attributed to the partnership. (Mulligan, 2012). Although the decision has recently been reversed, such was the integration that for a while users could only join Spotify through Facebook as a Facebook user (Resnikoff, 2012). Aside from the vast increase in the brand’s exposure, the integration allows users to see what their friends on Facebook are listening to and provides the option to have those music choices appear on their news feeds. The Spotify Facebook page has close to 4 million followers and not only offers a link to the app, but also provides a variety of music related content such as new album releases, competitions, giveaways and user driven polls. Celebrity tie-ins, where famous musicians create Spotifty playlists, also work to keep user interest and engagement high.
Spotify uses first person language when communicating to engage the user with the programme. The programme “learns” the types of music the user likes through profile building from previous searches, and in turn recommends music from similar genres and artists. It also allows for users to submit reviews of albums as well as providing professional reviews from major publications such as Rolling Stone and NME Magazine.
Spotify’s growth trajectory (Facebook integration September 2011)
Gift Economy
“Despite its commercialisation and the mix of fee and free content, the Internet remains a gift economy” (Veale, 2005). Gift Economy is a term used to describe the process whereby goods are supplied to the recipient without the expectation of immediate payment or in many cases, any tangible payment at all. The concept of a gift economy is the oldest form of commerce, predating monetary exchange. It is a system based largely on traditional community values of sharing and helping our neighbours free of charge, with only a small expectation that the help would be reciprocated.
The increase in standards of living and individual purchasing power has led to a decrease in our need to rely on close friends and neighbours for gifted help. As we can now afford to pay someone else for that help, these types of community interactions are on the decline. “If you are financially independent, then you really don’t depend on your neighbours - or indeed any specific person – for anything” (Eisenstein, 2011). While our ability to take care of ourselves has seen a breakdown in traditional community gift circles, altruistic sharing continues to be the primary provider of information and activity on the Internet. “Most Internet users collaborate with each other without the direct mediation of money or politics” (Barbrook, 2005). The low and falling costs associated with the Internet has made giving and sharing easy for those with a little spare time. “There’s never been a more competitive market than the Internet, and everyday the marginal cost of digital information comes closer to nothing” (Anderson, 2008).
Gift Economy
“Despite its commercialisation and the mix of fee and free content, the Internet remains a gift economy” (Veale, 2005). Gift Economy is a term used to describe the process whereby goods are supplied to the recipient without the expectation of immediate payment or in many cases, any tangible payment at all. The concept of a gift economy is the oldest form of commerce, predating monetary exchange. It is a system based largely on traditional community values of sharing and helping our neighbours free of charge, with only a small expectation that the help would be reciprocated.
The increase in standards of living and individual purchasing power has led to a decrease in our need to rely on close friends and neighbours for gifted help. As we can now afford to pay someone else for that help, these types of community interactions are on the decline. “If you are financially independent, then you really don’t depend on your neighbours - or indeed any specific person – for anything” (Eisenstein, 2011). While our ability to take care of ourselves has seen a breakdown in traditional community gift circles, altruistic sharing continues to be the primary provider of information and activity on the Internet. “Most Internet users collaborate with each other without the direct mediation of money or politics” (Barbrook, 2005). The low and falling costs associated with the Internet has made giving and sharing easy for those with a little spare time. “There’s never been a more competitive market than the Internet, and everyday the marginal cost of digital information comes closer to nothing” (Anderson, 2008).
http://www.longtail.com/the_long_tail/2008/10/a-revizualizati.html
Spotify is classed as a Freemium business model in that is has both free and paid-for services. A free version of a streaming music site is all but required to compete with the proliferation of other free music provided by both legal and illegal sources. With Spotify’s basic “free” subscription model, the return comes in the form of users listening to and seeing advertisers commercials. The advertisers then pay Spotify for that airtime and space. By providing this gifted service, there is always the hope that a percentage of the users will migrate to the feature rich, paid-for service. Spotify has been particularly successful in converting users to the premium service with 27% of active users choosing to switch to the paid-for service (Mulligan, 2012).
References
Anderson, C. (2008) Free! Why $0.00 Is the Future of Business. Retrieved 15th July 2013 http://www.wired.com/techbiz/it/magazine/16-03/ff_free?currentPage=all
Barbrook, R. (2005) The Hi-Tech Gift Economy. Retrieved 15th July 2013 http://firstmonday.org/ojs/index.php/fm/article/view/1517/1432
Eisenstein, C. (2011) To Build Community, an Economy of Gifts. Retrieved 15th June 2013 http://www.yesmagazine.org/happiness/to-build-community-an-economy-of-gifts
Gauntlett, D. (2004). Basic Web Economics: How things work in the 'attention economy'. newmediastudies.com. Retrieved 15th June 2013 from:http://www.newmediastudies.com/economic.htm
Goldhaber, M.H. (1997). The Attention Economy and the Net. Retrieved 15th June 2013 from http://firstmonday.org/ojs/index.php/fm/article/viewArticle/519/440
Hunt. P. (2012) Spotify Versus Pandora: The Battle for Connected Customers. Retrieved 15th June 2013 from http://blog.mindjet.com/2012/04/spotify-vs-pandora-the-battle-for-connected-customers/
Iskold, A (2007) The Attention Economy: An Overview. Retrieved 25th June 2013 from http://readwrite.com/2007/03/01/attention_economy_overview#awesm=~oavGTswy9r5Dug
Mulligan, M (2012) Spotify Hits 20 Million Monthly Users and Could be on Track for 8 Million Paid Users 1 Year From Now. Retrieved 25th June 2013 from http://musicindustryblog.wordpress.com/2012/05/15/spotify-hits-20-million-monthly-users-and-could-be-on-track-for-8-million-paid-users-1-year-from-now/
Tufekci, Z (2013) “Not This One” ; Social Movements, the Attention Economy, and Microcelebrity Networked Activism. Retrieved 25th June 2013 from http://abs.sagepub.com.dbgw.lis.curtin.edu.au/content/57/7/848.full.pdf+html
Resnikoff, P. (2012) Spotify is No Longer Requiring a Facebook Login. Retrieved 25th June 2013 from http://www.digitalmusicnews.com/permalink/2012/120904spotify
Veale, K (2005) Internet Gift Economies: Voluntary payment schemes as tangible reciprocity. Retrieved 13th July 2013 from http://firstmonday.org/ojs/index.php/fm/article/view/1518/1433
Spotify is classed as a Freemium business model in that is has both free and paid-for services. A free version of a streaming music site is all but required to compete with the proliferation of other free music provided by both legal and illegal sources. With Spotify’s basic “free” subscription model, the return comes in the form of users listening to and seeing advertisers commercials. The advertisers then pay Spotify for that airtime and space. By providing this gifted service, there is always the hope that a percentage of the users will migrate to the feature rich, paid-for service. Spotify has been particularly successful in converting users to the premium service with 27% of active users choosing to switch to the paid-for service (Mulligan, 2012).
References
Anderson, C. (2008) Free! Why $0.00 Is the Future of Business. Retrieved 15th July 2013 http://www.wired.com/techbiz/it/magazine/16-03/ff_free?currentPage=all
Barbrook, R. (2005) The Hi-Tech Gift Economy. Retrieved 15th July 2013 http://firstmonday.org/ojs/index.php/fm/article/view/1517/1432
Eisenstein, C. (2011) To Build Community, an Economy of Gifts. Retrieved 15th June 2013 http://www.yesmagazine.org/happiness/to-build-community-an-economy-of-gifts
Gauntlett, D. (2004). Basic Web Economics: How things work in the 'attention economy'. newmediastudies.com. Retrieved 15th June 2013 from:http://www.newmediastudies.com/economic.htm
Goldhaber, M.H. (1997). The Attention Economy and the Net. Retrieved 15th June 2013 from http://firstmonday.org/ojs/index.php/fm/article/viewArticle/519/440
Hunt. P. (2012) Spotify Versus Pandora: The Battle for Connected Customers. Retrieved 15th June 2013 from http://blog.mindjet.com/2012/04/spotify-vs-pandora-the-battle-for-connected-customers/
Iskold, A (2007) The Attention Economy: An Overview. Retrieved 25th June 2013 from http://readwrite.com/2007/03/01/attention_economy_overview#awesm=~oavGTswy9r5Dug
Mulligan, M (2012) Spotify Hits 20 Million Monthly Users and Could be on Track for 8 Million Paid Users 1 Year From Now. Retrieved 25th June 2013 from http://musicindustryblog.wordpress.com/2012/05/15/spotify-hits-20-million-monthly-users-and-could-be-on-track-for-8-million-paid-users-1-year-from-now/
Tufekci, Z (2013) “Not This One” ; Social Movements, the Attention Economy, and Microcelebrity Networked Activism. Retrieved 25th June 2013 from http://abs.sagepub.com.dbgw.lis.curtin.edu.au/content/57/7/848.full.pdf+html
Resnikoff, P. (2012) Spotify is No Longer Requiring a Facebook Login. Retrieved 25th June 2013 from http://www.digitalmusicnews.com/permalink/2012/120904spotify
Veale, K (2005) Internet Gift Economies: Voluntary payment schemes as tangible reciprocity. Retrieved 13th July 2013 from http://firstmonday.org/ojs/index.php/fm/article/view/1518/1433