Curated Content Overtaking Paid Advertising

The world is shifting at a rapid pace. Nowhere is this more true than online. What was application a decade ago is now long forgotten.

As we embark towards the next generation of the Internet, we are seeing many models becoming disrupted. We often discuss this in an attempt to make people aware of what is occurring.

While there is transformation in place, it is often hard to detect due to the fact the existing entities are still powerful. History shows this often changes with time.

In this article we are going to discuss how different a networked world might be.

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Hits For A Few

In the last article, we covered the opportunity offered by the Long Trail theory. Now, we will condense the backdrop even further.

This means we are going to concentrate on content. In other words, we are gong to look within the networks to see how things are evolving.

The Internet offers more choice than ever before. We visit a site like YouTube and there are millions of hours of video to choose from. Where does one start?

Anyone who used this medium knows the answer to this. We basically are fed the videos we watch. The algorithm isolates the content based upon our past activity, then presents us with what it thinks we will be interested in.

At the same time, these networks utilize the same process across the entire platform. For example, head to X and what do you see? Trending tags.

Effectively what we are looking at are modern day curation methods. It is why some things receive huge "hits" while most gets overlooked. The fragmentation means we are presented with overwhelming choices, to a degree people would be paralyzed if left unaddressed. Hence the emergence of different curation techniques.

Networks offer the duality of near endless amount of choices yet only few options as the feedback loop takes hold. People end up seeing the more popular choices on these platforms since that is what the "community" opts for. The ability to focus outside of that is possible yet that requires effort, something most are not willing to embark upon.

Paid Advertising

Content is content when it comes to the Internet.

This is something that we have to keep in mind. The important component to this is garnering attention.

In the broadcast world, an advertiser could pay a network for ad time on something like the Super Bowl, knowing there were would tens of millions tuning in. While there were other options during that time, it is likely most eyeballs, at least in the United States, was on that channel.

This is not the case with the Internet. Even something that goes viral, the timing is scattered. Something that generated billions of views happens over the course of days (or weeks). It keeps getting passed around, noticed at different times.

The problem is that paid advertising is competing with all this. When we view the Long Tail chart, we can see that most is going to fit on the right side of the chart. Only a few pieces go viral at a given time. That is what gets most of the hits.

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Here is the multi-billion dollar question: how often does paid advertising go viral?

When was the last time something that was developed to deliver a message was so appealing that the Internet community had to share it with everyone?

One could make the case some Super Bowl ads followed this path. That could be true as they were heavily promoted by users. However, we know this is a rarity especially since companies spend a fortune preparing for that one event.

In other words, it is not a regular occurrence.

Life In A Networked World

The Internet both fragments and concentrates attention. This is one of its novel qualities.

We can view this medium as simply one big network. Billions of people are connected all over the world. This means it creates a massive feedback loop that, while appearing to fragment attention, actually directs it.

This is why there are still "hits" in this realm. Out of all the choices, people start curating content in ways that drives others to follow. Hence, over time, the number of options people are really opting for dwindles.

Consider the fact that each node on a network has the ability to influence any other node. This is what alters the standard distribution curves. It also shows that network phenomena are dependent, i.e. feedback loops.

To illustrate, look at the tendency to try and attract "influencers". While each node can impact another, some have greater pull. Those with larger followings, a knowledge in a niche, or a general ability to garner attention will have a larger impact on the other nodes (users) of a network.

This is true whether we look at this from the level of the Internet as a whole or start to break it down to smaller levels.

In the broadcast world, the influencers are basically the largest media platforms. Access is given to those entities with big checkbooks. It is a pay to play environment.

We see how things are totally different online. It is true that paid advertising is still commonplace. This comes out each time Facebook (Meta) reports its earnings. However, these are being drowned out by the nature of these networks.

It is also why advertising on YouTube videos, for example, is done by targeting the influencers. Since they can affect the other users, space on their videos carry a premium.

Standing Out From The Crowd

We can see how this applies to a collective paradigm.

Over the years I maintained that Web3 is really a realm of digital cooperatives. This is something that alters the entire premise of a network.

How does a particular network stand out compared to the rest? What will make things go viral that will capture the attention of the masses?

These are common questions but misguided. The belief here is that "hits" are generated. Unfortunately, there is no telling what goes viral. Some still have an impact based upon their ability to appeal to the proper nodes. However, that is not a guarantee as evidence by the relationship between Pat McAfee and ESPN. The influence he wields is not translating into the numbers desired.

Here again, we can look at the Long Tail. If we presume most content is going to miss, then we can take the proper action. To reiterate, this applies equally to an individual content creator (brand) along with an entire network.

Even misses can become hits if enough of them are strung together. Developing a following in many different areas is key. Niche marketing will continue to grow as companies seek to isolate their potential customers. Here is where "community" can enter.

The cooperative can do things to benefit each participant by understanding how fragmentation can lead to concentration. By continually building up the different aspects of the network, the likelihood of something going viral increases.

We are entering a world where networks will be abundant. Hence, the ability for all participants to stand out is crucial.

As the effectiveness of advertising diminishes, where does this leave companies? To me, this all comes down to the ability to access the networks or, more accurately, the niches within them. Here is where entities can make a difference.

A network has more ability to generate hits within its domain as compared to the Internet in general. This is a logical concept yet is often overlooked. We see this in the quest to swim in the pool with all those on the major social media platforms. For most, this is a fool's errand.

The Internet changed everything for marketers. Web3 is going to radically alter it again.

Simply paying for ads might not end up being the most effective approach. We are going to see the entire paradigm shift. Perhaps the use of NFTs will play a major role. Ultimately, these companies will need to develop networks on their own.

This is true no matter what the product is.

It is the only way they can ensure that curation happens in their favor.

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