The Intersection of Market Research and the Attention & Trust Economy

The Intersection of Market Research and the Attention & Trust Economy

In today's fast-paced and highly competitive business landscape, entrepreneurs often find themselves asking a crucial question: "If I build it, will they come?" It's no secret that tapping into a large market with pre-existing demand can make things easier for any business. Going after markets where users are already familiar with your product category and offering a better product along some competitive axis can be a winning strategy. Just look at some of the Valley's best companies like Google, Facebook, and Apple's mobile products, which entered their respective markets late but effectively competed with differentiated products to emerge victorious.

But how do you know if there's a market for your new product or service? This is where market research becomes essential. One of the key tools that entrepreneurs can use to gauge market demand is Google's Keyword Tool. This versatile tool offers several use cases that can help validate the mainstream appeal of a product category, ensure customer-centric wording, and identify suitable product positioning options.

When using the Google Keyword Tool, one of the first things you can do is plug in keywords related to your business. If you find that the numbers are low, it might mean that you're using wording that mainstream users don't understand or don't care about. This insight can guide you to steer your product towards a category with millions of pre-existing consumer searches, indicating mainstream understanding and demand.

Another valuable use of the Google Keyword Tool is finding the right words to describe your product. By plugging in your high-concept pitch and getting millions of searches back, you can be confident that you're on the right track. As Henry Ford famously said, "If I asked my customers what they want, they simply would have said a faster horse." It's important to build a car, not just a faster horse. However, starting with a description that emphasizes the familiar aspects of a faster/better horse can help people understand the concept before introducing them to the innovative features of your product.

Sometimes, entrepreneurs find millions of users searching for something that doesn't exist yet. This presents a great opportunity if you can execute a compelling product in that space. Having a vision for your product and executing against it is essential. As Steve Jobs once said, "Invent and build cars, but market it as a horseless carriage so that people know what they're buying and why." This may require cleaning up the marketing and messaging around your product to fit it into something consumers understand.

Now, let's shift our focus to the Attention & Trust Economy, a theme that has gained significant importance in recent years. People have started feeling a sense of fear and doubt when their attention is constantly being hijacked. In order to capture attention in today's world, businesses must also sell "trust" simultaneously. This gives rise to the concept of the Attention & Trust Economy.

In the United States, Generation Z (Z世代) is considered the most diverse generation, currently accounting for 27% of the population. By 2026, it is projected to become the largest generation in terms of population size. Understanding the preferences of Generation Z is crucial, as they are constantly consuming content and brands through their smartphones and have the power to switch brands instantly. If a brand breaks its promises or takes actions that contradict its vision, Generation Z loses trust in that brand.

Traditionally, having money was a status symbol, and people showcased it through expensive possessions like Gucci bags. However, the concept of status has shifted. It's no longer about having money; it's about having "access." Whether it's getting into exclusive restaurants, accessing limited-edition products, or downloading an app that's not available to the general public, access has become the new status symbol. Additionally, having knowledge that others don't possess, such as being aware of environmental issues, also adds to one's status.

In this constantly evolving landscape, staying on top of trends is crucial. Generation Z, in particular, demands the ability to adapt quickly. Platforms like TikTok change trends every week, and Generation Z must be aware of the latest dances, music, and TikTok stars to stay connected. Being able to uncover and access information that others don't know or having the joy of discovering such things becomes a source of happiness for them.

Successful companies often start by dominating a niche, then expand into the mainstream market, and eventually sell a lifestyle. Focusing solely on rapid growth and sales numbers is not enough. To create a brand that transcends generations, businesses need to provide users with overwhelming value, a sense of community, and an insider experience.

In the Attention & Trust Economy, brands become likable by controlling the value they offer to those who have access and the right to access. The future of brand-building lies in starting with audience creation. Companies like Glossier and Barstool Sports are prime examples of this approach. By creating content and leveraging attention and trust, these brands naturally monetize their offerings.

Generation Z is a generation that values self-expression and creativity. They are more inclined to share their experiences with the world compared to previous generations. As AirPod sales are projected to reach 100 million units in 2021, it's only natural that audio-based social media and audio content platforms will continue to expand. Moreover, Generation Z, who grew up communicating through platforms like Discord and primarily using voice communication, will likely seek the same in their workplaces.

Leading companies like Tencent are investing heavily in building the infrastructure and content required for the metaverse. Tencent owns 40% of Epic Games, which is closest to creating metaverse infrastructure. It also holds significant stakes in Snap, which may possess A/R, Mirrorworld, and digital mapping technologies in the future.

In conclusion, the intersection of market research with the Attention & Trust Economy reveals valuable insights for entrepreneurs. By utilizing tools like Google's Keyword Tool, businesses can validate market demand, choose customer-centric wording, and identify suitable product positioning options. Understanding the preferences of Generation Z and focusing on building trust and providing access can lead to the creation of successful brands. Additionally, staying on top of trends and embracing new platforms and technologies will ensure businesses remain relevant and appealing to the ever-evolving consumer landscape.

Actionable Advice:

1. Utilize Google's Keyword Tool to gauge market demand and ensure customer-centric wording for your product or service.
2. Understand the preferences and values of Generation Z, and focus on building trust and providing access to appeal to this influential demographic.
3. Stay agile and adapt to the rapidly changing trends and platforms in the Attention & Trust Economy to remain relevant and capture the attention of your target audience.