“the rapid growth of information causes scarcity of attention” (Iskold, 2007, p1)
The explosion of information on the internet has had two dramatic effects:
- consumers have vast amounts of information available to them via websites, blogs, social networking sites and podcasts about the goods and services available offline and online.
- there is so much information available that consumers are faced with information overload.
Iskold (2007) referred to this as the law of information which states “the rapid growth of information causes scarcity of attention” (Iskold, 2007, p1). This attention crisis is not only a consumer dilemma but it is also a problem for online businesses such as websites, retailers, search engines. Iskold (2007) contends that “scarcity of attention hurts the businesses economics” (Iskold, 2007, p1)
Image (Iskold, 2007)
Attention can be either implicit (click stream or surfing) or explicit (bookmarks and tags). As reflected in the diagram above in the attention marketplace consumers exchange services in return for their attention. A number of attention services (e.g. alert) exist within the economy to keep consumers informed and “grab” their attention. The purpose in the long run is to sell something to the consumer.
The keys elements in obtaining consumer attention include:
- relevancy. If a consumer finds the content on the site relevant then they are more likely to stay or revisit this site in the future. The more often the consumer visits the site the more likely they are to read or click on advertising within the site. Data mining provides personal information about the user to be analysed and then this is used to deliver relevant content to the sites visited;
- privacy - the challenge is to protect the consumers personal information and also to allow the consumer to have control over the information that they wish to receive;
- trust - the consumer needs to be assured that control of their information will not be removed from them.
Strategies used by businesses to obtain a consumers attention include:
- advertising ( for example banner advertising)
- "payment for placement" where search engines, social networking sites place links or recommendations or advertising on their site for another business;
- consumer recommendation which include paid and unpaid reviews of products available on the web.
The attention economy is fundamental to internet economics in that attention has become the scarce or limited resource. To achieve success in the marketplace the online businesses must not only obtain but also retain the customer’s attention. Amazon.com leverages attention in a number of distinct ways.
Firstly it’s Website is:
- easy to locate via search portals and embedded links. ''We direct customers to our websites primarily through a number of targeted online marketing channels, such as our Associates program, sponsored search, portal advertising, and other initiatives" (Amazon.com Annual Report 2009, p30).
- simple to navigate and use.
Secondly Amazon.com.com uses customer reviews or recommendations to attract buyers wishing to acquire information and knowledge about the products
Thirdly, the wide selection of products and services enables the company to provide greater choice to its customers and this in turns helps to attract additional customers (Datamonitor, 2010, p6).
Lastly, the company has expanded its operation and product offering through its various acquisitions e.g. Zappos.com (footware). These acquisitions "are likely to add new customers and complement Amazon.com's product portfolio." (Datamonitor, 2010, p7).
