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Internet Basics
Consumer and Creator
3.A. Where the Viral Things Are
5. Pre-founder: People-focused investing
Content is King -- Bill Gates, 1997
Things To Do.
Villains/Heroes, Love/Technology
Creator Extras
Investment
Total Content Market (TCM)/Content TAM (C-TAM)
Introducing: On-Page Collaboration, LiveWriting, anti-Press Publish
The birth of the “active consumer” and businesses of influence
Consumer to Creator Shift.
Information and opinions are available to consumers before and during their purchase decision. They know that they have the same ability to share their experience of a product, a brand and a purchase with others. Buying is an active process for them.
The internet has transformed consumers from passive recipients of advertising into active participants in the marketplace. This shift, driven by the internet and the rise of online communities, has fundamentally changed the balance of power between brands and their audiences.
In the past, brands and advertisers had all the leverage. They controlled the narrative. Consumers were passive—accepting whatever messaging came their way, relying on what brands told them, without a care of being well-informed or easily swayed by traditional marketing tactics.
Today, consumers aren’t just consuming products; they’re also consuming information. Apart from entertainment media, consumers are viewing daily:
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A passive consumer is a consumer is an individual who engages in the act of consuming goods, services or information without actively seeking or using any critical analysis to determine if it’s worth consuming. Traditionally, this term refers to consuming media. And wasn’t a negative term.
An active consumer is a consumer that uses active consideration if a product, service, or piece of media is worth consuming in relation to their finances, health and/or interests.
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Fushigi, Blopins, Bumpits… all of the greatest hits that drove most of your desires back in the 2000s; the kinds of products you saw on TV, and if the ad was good enough, you wanted them. The last of good ol’fashioned advertising. It’s hard to overstate how different things are today.
During my impressionable prime, Nickelodeon and Disney Channel days, if you wanted to know about a product, you had to rely on whatever information the company gave you and that was… mostly just marketing.
What makes today’s consumers different isn’t just that they have more choices. It’s that they have access to more information about those choices. Before buying anything, most people will check reviews, compare prices, or look at at least 50 TikToks to see what someone else thinks. It’s not that they’re more cynical; it’s that they’re more informed.
89% of consumers now read reviews before making a purchase - and that’s a huge change. For most of history, if you wanted to know if something was worth buying, you relied on the brand’s reputation, or you asked a friend. Now you can ask millions of people. And that means brands have lost their monopoly on trust. Only one in five consumers fully trust reviews on brand websites, while the majority now trust online reviews as much as personal recommendations.
![em - consumption flow diagram [jack remix] (1).png](https://prod-files-secure.s3.us-west-2.amazonaws.com/d09c16ec-c4e1-4f4b-a922-de7942448d5a/813e7055-2a68-4556-953f-fdfff000dbba/em_-_consumption_flow_diagram_jack_remix_(1).png)
And whose opinions matter the most? Other consumers.
The real point to drive home here is that the most impactful information on the internet today driving consumption isn’t brands: it’s consumers that have access to other consumers.
This, however, has nuance in itself. The concept of a “review” or “reviewer” used to be exclusive to higher-up, or “tastemakers.” This isn’t to say that the role of editors, journalists, or tastemakers in general isn’t important and that it should be left to everyday individuals: because it shouldn’t. Everyday individuals have poor taste. But this is the hard truth: not everyone is looking to have amazing “taste” in every aspect of their lives. Just finding the products or information that might work best for them.
What consumers are looking for is:
Influential individuals can start countries, religions, create and destroy industries with what they do and say.
[Editors Note: I still have to write Influence is Math (going through some network science 101.)
Needless to say, they have either a strong direction on how they want for things to be or confidence in their logic behind an opinion. Individuals don’t want to hear flip flops because they can do that on their own time. They want to hear what you think and the information you have that got you there.
This seems obvious, but you have to had tried the product before you… review it. Example:
The Hasselbeck incident: Liz Hasselbeck was supposed to review the Amazon Kindle and discuss her experience using it. When asked specific questions about the device, and she admitted she hadn't actually used it. Flop.
Typically, consumers are looking for someone who 1) bought it with their money 2) have video proof of them using the product which would lead to 3) real-time reactions, unedited.
Trust has shifted from brands to individuals.
Consumers are adjusting their shopping habits due to inflationary pressures and increased product prices. Notable statistics include:
The shift towards active consumption can be categorized into three key aspects: