Welcome to the Summarin - your weekly dose of commentary and summaries of the most interesting topics from the world of culture, media and commerce. If you are new around here and like what you read, hit the subscribe button below.
In today’s edition (7.5.22):
The fight for attention
Luxury brands drive the adoption of innovation
New models of ownership on the web
Attention Economics
ATTENTION FOR SALE!!! Yours, mine, everyone’s.
Our attention has been monetized by the big tech platforms. Whether that is the short-form TikTok stream, Instagram Reels, YouTube rabbit holes or Twitter fights over “the current thing”, we have willingly surrendered the ownership of our attention to our favorite apps. In turn, they’ve masterfully executed on this and turned the valuations of their companies into multi-billion dollar businesses.
Disguised as entertainment and education, we are led to believe that we are getting a lot in return for our participation on these platforms. To an extent that is true - there is an intangible value obtained from the dopamine hits streaming out of social media. This is the web2 world. Optimizing for attention and then monetizing it is what keeps the engine running for these companies. You are the product and in return you get to enjoy a distraction from the issues of the real world. This is happening to all of us.
The emergence of web3 is suggesting a new model that can flip the one-sided relationship between users and platforms 180 degrees. With the ability to reward attention and user contributions, web3 exposes a way for users to get compensated for their time through ownership of the network or platform. This shift is already happening in e-commerce and is being aggressively pushed by luxury brands. Some brave thinkers even suggest that this phenomenon may create a sort of universal basic income for internet users so you can basically make a living out of your time spent on the internet. That sounds nice.
Attention economics are being rewritten as we speak. There is a non-zero chance that a new model will emerge over the next decade which puts the user in control. A more tech-savvy, well-informed, privacy-conscious consumer is going to demand more from the platforms they are using. Tokenomics and crypto can provide the tools with which to achieve this transition.
“There is real upside in the reshaping of the attention supply chain. From Substack to Spaces, thinkers and entertainers with heft and talent have established distribution channels outside the superstructure of media brands.”
The attention economy is that term that gets mentioned regularly in marketing videos and conferences, but if we look closely at the impact of how technology companies have been able to capitalize on our attention, we may be faced with a bleak picture. The distractions, emanating from our favorite platforms are making it harder to focus on the things that matter in the real world. We are bombarded by highly-optimized content which excels at getting our brains high on trivial issues. There’s a detriment to our over-reliance on these platforms - we’ve developed a co-dependent relationship with our feeds and that may often lead to forgetting what is really going on in the world. Read story
“The services, also known as point-of-sale loans, are heavily marketed by influencers and brands on TikTok and Instagram.”
If you are in retail you are constantly obsessing over conversion rate optimization and increased cart value - that’s the nature of the business. In recent years, the buy now, pay later (BNPL) feature has become prominent across stores online and some people and regulators are now starting to take a closer look at the companies and methods involved in the scheme. For once, you can argue that BNPL can help customers acquire necessary services and products if they don’t have the means at the moment of purchase. However, driven by an explosion of influencer brands and eager promoters, there is a danger that younger consumers get into a situation where they owe multiple debts and cannot make payment. Should there be more strict regulations around such schemes. For sure. There is also responsibility with the retailers and marketplaces to transparently communicate the risks and make sure they are not having short-term profits from a population that cannot afford to pay. Read story
Here’s the biggest NewFronts news so far (Marketing Brew)
“Streaming platforms and publishers have spent the last two days unveiling new ad formats and flashy new programming for advertisers to consider as they work out their upcoming marketing plans.”
Get ready to meet a familiar face during your down-time, next time you are streaming your favorite programs. Ads are going to rush in on your screen sooner than later as more and more streaming platforms are announcing ad-supported tiers. In a move that they hope will create new revenue streams, streamers are seriously updating their models to factor in the participation of advertisers. Whether through simple on-screen banners or through the “organic” placement of products in the background through software, our attention is bound to get monetized in various creative ways. Read story
Frédéric Arnault talks Tag Heuer, Web 3.0 and NFTs (Vogue Business)
“Frédéric Arnault, who became CEO of Tag Heuer in July 2020, has reversed the pandemic-induced decline in sales at the LVMH-owned Swiss luxury watch brand. Now he has in his sights the goal of turning Tag Heuer into a €1 billion business.”
In another example of how luxury brands push for the mainstream adoption of new technologies, a profile of Tag Heuer’s CEO Frédéric Arnault illuminates what the company is working on and how this focus on innovation is helping maintain the brand’s leading status. From synthetic diamonds to NFTs and connected watches, read how this young CEO is positioning the brand for the next generation of consumers. Read story
“Whereas many other luxury brands are intent on creating exclusive Metaverse communities of Web 3.0 native Gen-Zers with entry policies often as obtuse as those of an elite U.S. college fraternity, Plein takes a diametrically different approach.”
The luxury retailer Philipp Plein is on a mission to onboard the masses into the metaverse and crypto. In a concept-store in London, the brand is creating a mixed experience of physical and digital with the focus on education and accessibility. Allowing payments and refunds in cryptocurrency and giving away NFTs for free are just some of the ways the brand is trying to entice its customers to become collectors and participants in web3. Read story
Tokengated Commerce (Not Boring)
“The next big thing in 2022 is entrepreneurs building custom experiences based on the inventories in peoples' wallets.”
As web3 matures and becomes key infrastructure for digital businesses, tokens and wallets become ever more present. For retailers and operators in e-commerce this means that there’s a new layer to the customer experience emerging and it needs to be carefully considered. Eventually, web3 will become part of the core tech stack of e-commerce, just like email marketing, social ads, reviews and user-generated content. Read story
The Ownership Economy 2022 (Li’s Newsletter)
“What started with Bitcoin and Ethereum—both of which reward participants who secure the network with their native tokens—is becoming prevalent across all categories of software”
The financialization of everything is what I like to call the phenomenon which web3 is layering on top of the internet. The idea is that every product or service that derives value from you as a participant will reward you for the effort. Currently, this is happening in the niche world of web3 through tokens that can be bought or distributed based on the level of contribution of each user. The biggest argument in support of this new model comes in the example of user-generated content on platforms such as TikTok or Instagram - where users create tons of material and most get nothing in return, yet the platforms themselves appreciate in value. It’s a one-sided relationship that web3 is promising to change and turn into a more equitable two-way system. Read story
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That’s all for this week.
Great things will happen,
Marin