The Attention Economy: How Algorithms Shape Value and Desire

In today’s hyper-connected world with increasing technology, our focus has become one of the most precious commodities. What used to just be a simple supply and demand for goods has become competition for our attention. Within this new economy, platforms like TikTok and other algorithm-driven services are the most active participants in shaping what we see, what we value, what we consume, and ultimately what we care about.

In classical economics, value is often associated with scarcity. We have limited resources for unlimited wants and needs. The things that are scarce are what we typically value the most. But in this newer digital age, attention has become the scarce resource. As the Center for Human Technology explains, “we don’t pay up front to use apps like Facebook, Instagram, TikTok, but these platforms don’t give us software for free - they sell influence.” In other words, our time, gaze, and engagement have become commodified and sold to advertisers. The business model is to capture attention, collect data on what we pay attention to, and use that data to monetise ads or do brand placements.

The TikTok “For You Page” is an important example of this idea. Its recommendation engine doesn’t rely solely on the accounts you follow. It constantly observes the videos you like, how long you watch them, the videos you rewatch, the videos you share, and your scroll speed to tailor the user experience to very specific preferences. Similar videos appear more frequently the more you watch a particular kind of content. As a result, this algorithm prioritizes engagement and retention, creating a carefully curated tunnel of attention.
In this instance, attention is treated as if it were a currency. Companies compete for it just as they would for market share. This changes the way that products are sold, shifting the focus away from necessity or quality towards how well they can capture and hold our interest.

The things that grab our attention start to feel more important than quality products. Short, flashy videos become more popular on TikTok since the algorithms are designed to keep us constantly scrolling. Brighter images, transitions, and attention-grabbing text increase views. This can give the impression that the content is more valuable even when, in reality, creators are advertising for our attention rather than the product itself. 

Because it elicits more powerful responses, dramatic and emotional content tends to find more success. Information and news are impacted by this phenomenon, leading to more engagement with stories that are shocking than with ones that are factual or true. Many believe this phenomenon may alter our priorities, thoughts, and even our decision-making processes. In other words, our values are shaped by the things we pay attention to, without our knowledge.

Algorithms have changed how consumers form preferences and make economic decisions. Traditional models presume that consumers behave logically with readily available information and that they have stable tastes. However, by influencing exposure and value, platforms that use these algorithms now actively shape people’s desires. For instance, algorithms often make certain products go viral, like skincare items or fast fashion hauls, even when there isn’t authentic demand for them or the quality of the product is bad. These products consistently appear on people’s screens, pushing them to buy more and more. This creates fake demand cycles where items get popular fast, peak, and then disappear when the algorithm moves on. As a result, companies overproduce, which creates waste and unstable demand.

The influence of algorithms also redistributes economic power. While smaller producers without reach find it difficult to compete, companies that are experienced in influencer marketing receive disproportionate advantages. This reshapes consumption by making attention, rather than quality or price, a primary driver of demand. 

Platforms that control attention also shape what people see, thereby influencing who succeeds and who gets ignored. Creators who understand how algorithms work can gain huge followings, while others struggle to get noticed. This gives a small group of individuals more power. Outside of businesses, attention also shapes public conversations. Social issues or important news that don’t get clicks are frequently overlooked in favor of viral content. There are personal consequences as well; when algorithms take up our time and attention, we have less time for learning, critical thinking, or meaningful interaction. In this sense, the attention economy affects not only what we watch but also the distribution of ideas, resources, and influences in society.

When the attention economy is powerful, there are ways to reduce its negative effects. Platforms could make their algorithm clearer to the public and design feeds that focus more on accuracy, variety, and usefulness, not just keeping individuals engaged. Users can also take control by limiting screen time, paying closer attention to how they scroll, or using tools to filter certain content. By understanding how algorithms shape our attention, people can be more mindful of how they spend their time and what they focus their attention on. Combining smarter platform design with awareness and good personal habits can shift the attention economy toward content that informs rather than just simply entertains and influences.

Platforms like TikTok demonstrate how attention has become a digital commodity. The content we see every day isn’t neutral, it is designed to hold our interest and keep us watching. This affects our values, decision-making processes, and even the distribution of power and resources in society. Understanding how the attention economy works helps explain its wider social and economic impact.

Sources:

Centre for Humane Technology. “The Attention Economy.” Www.humanetech.com, 17 Aug. 2021, www.humanetech.com/youth/the-attention-economy. 

Chiossi, Francesco, et al. “Short-Form Videos Degrade Our Capacity to Retain Intentions: Effect of Context Switching on Prospective Memory.” ArXiv:2302.03714 [Cs], vol. 1, 7 Feb. 2023, arxiv.org/abs/2302.03714, https://doi.org/10.1145/3544548.3580778. 

Ibrahim, Nadia. “TikTok and the Attention Economy.” Knowledge for Freedom, 2022, knowledgeforfreedom.org/student-voices/tiktok-and-the-attention-economy. 

Steinhorst, Curt. “Lost in the Scroll: The Hidden Impact of the Attention Economy.” Forbes, 6 Feb. 2024, www.forbes.com/sites/curtsteinhorst/2024/02/06/lost-in-the-scroll-the-hidden-impact-of-the-attention-economy.