Thoughts

Theory of Bottom Lines in The Modern Digital Economy

…or how algorithms shape the way we produce, explore and buy…

Have you ever thought that a copy of your taste lives in a data centre?

This note doesn’t serve as a formal theory. It showcases one of its dreadful applications which leads us to the crisis of ideas and a shallow way of production.

Our example is X. X is a successful brand. X possesses a vision. Its vision enacts X aesthetics which materializes in goods and marketing content. X is unique.

At some point X aesthetics takes up a substantial market share. From that point on X is a target because it’s profit-proof which is an exploitation point for capitalism.

Here is where the theory takes an effect. If a capitalist decides to cash in on X glory they will hit bottom line of X success which is aesthetics.

What are the moving parts of the equation?

  • Capitalism: a system where individuals seek to turn means of production into profit.
  • Industrialization: while X aesthetics is unique, it can be replicated for cheap.
  • Digital Marketing: X audience is exposed through Instagram. Thus, it can be targeted.

Theory wouldn’t function without the latter. Instagram lets you target competitors audience precisely which makes this business model safe and predictable or even a standard.

What’s even worse? It’s dangerous to innovate. Instagram wants users to stay in app as long as possible which it achieves by feeding them content that aligns with their existing tastes. Thus, ideas that deviate from those existing tastes are unlikely to reach any audience. With Instagram evolving into a one-stop destination for consuming all types of information, this reinforcement of the familiar only deepens the crisis of ideas.