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marketing arbitrage

Mispriced Attention Arbitrage Opportunities

Timeframe: Current opportunity window is 1-2 years before institutional buyers dominate

What's Changing

Attention markets remain inefficient despite maturation, creating arbitrage opportunities for sophisticated buyers

Driving Forces

Rapid creator economy growth outpacing pricing sophistication

New platforms and formats creating pricing confusion

Information asymmetry between brands and creators

Most brands still using outdated CPM-based thinking

Winners

  • Brands that contact creators directly vs agencies
  • Companies testing large creator cohorts simultaneously
  • Marketers who understand engagement over vanity metrics
  • Businesses that move fast on new platforms/formats

Losers

  • Brands paying agency markups and standardized rates
  • Companies focused only on top-tier creators
  • Marketers using traditional media buying approaches
  • Businesses that wait for established best practices

How to Position Yourself

1

Build direct relationships with micro and mid-tier creators

2

Test pricing across large cohorts to find arbitrage

3

Focus on engagement metrics over follower counts

4

Move quickly on new platforms before they become efficient

Early Signals to Watch

Agency standardization of creator pricingPlatform introduction of official brand partnership toolsLarge corporations launching massive creator programsCreator education increasing around pricing

Example Implementation

E-commerce brand finds TikTok creators with 100K followers charging $500 when Instagram creators with same following charge $2000, resulting in 4x cheaper customer acquisition