What makes a company an "attention merchant"?

Attention merchants are businesses that primarily make money by capturing and monetizing user engagement. They create digital experiences designed to keep you scrolling, watching, or listening, then convert that attention into revenue through advertising, subscriptions, or data collection. Examples include social media platforms like Meta (Facebook), content providers like Netflix, and ad technology companies that help turn eyeballs into dollars.

How do these companies actually make money from our attention?

Most attention merchants use one or more of these strategies: selling targeted advertising based on user behavior and preferences; offering paid subscriptions for content or premium features; facilitating transactions and taking a cut; licensing user data to third parties; or providing the technology infrastructure that helps other companies monetize attention. The longer they can keep users engaged, the more opportunities they have to generate revenue.

What is ad-tech and why are these companies included in this group?

Ad-tech refers to advertising technology - the software and tools that help deliver, target, and measure digital advertising. Companies like The Trade Desk (TTD), Magnite (MGNI), and DoubleVerify (DV) provide the behind-the-scenes infrastructure that powers the digital advertising ecosystem. While they don't always capture attention directly, they're essential in helping other companies effectively monetize that attention through sophisticated advertising solutions.

How might AI impact these attention merchant companies?

Artificial intelligence is a game-changer for attention merchants. AI enables these companies to deliver more personalized content and targeted advertising, keeping users engaged longer and making ad placements more valuable. For example, recommendation algorithms on platforms like Netflix, YouTube, or TikTok use AI to keep you watching, while advertising platforms use AI to show the most relevant ads. As AI technology advances, these companies can become even more effective at capturing and monetizing our attention.

What risks should I consider when investing in attention merchant companies?

Key risks include changing privacy regulations that may limit data collection and targeted advertising; competition for user attention in an increasingly crowded digital landscape; evolving consumer preferences and potential "digital fatigue"; technological disruption that could change how people consume content; and potential regulatory scrutiny around market dominance or business practices. Additionally, many of these companies are sensitive to broader advertising market conditions, which can fluctuate with economic cycles.

15 handpicked stocks

Attention Merchants

These companies have mastered the art of capturing and monetizing our most precious resource: attention. Carefully selected by our analysts, this collection of stocks represents businesses that transform user engagement into powerful revenue streams in our increasingly digital world.

Han Tan | Market Analyst

Updated 2 days ago | Published at June 17