How The Algorithm Actually Works
The hidden dependency driving social media economics
The Algorithm
The algorithm isn't magic. It's economics.
Every recommendation you see, every post that appears in your feed, every piece of content that gets amplified or buried—it all follows predictable business logic designed to serve one master: platform profitability.
Once you understand this fundamental reality, algorithm anxiety disappears. You stop trying to game what you can't control and start taking advantage of the system.
The algorithm doesn't hate you. It doesn't even know you exist. It’s simply doing what it’s supposed to do—increase shareholder value.
The Attention Economy Engine
Think of algorithms like vineyard trellises. The grapes grow freely, but they're still guided by the structure.
Your content can flourish and spread organically, but it operates within boundaries set by the platform's requirements. Understanding these boundaries isn't about gaming the system—it's about working smarter within it.
Every platform algorithm optimizes for the same core metric: time on platform. Everything else—engagement, reach, virality—is just a means to that end.
The longer you stay, the more data they collect. The more data they have, the better their targeting becomes. The better their targeting, the more time spent (and the higher their ad prices). The cycle continues until you or your battery dies.
This isn't cynical—it's simply how attention-based business models are designed to function.
But How?
Every time you log on, the algorithm makes thousands of micro-decisions about what you see. Each post gets evaluated in real-time: will this person stay or scroll past?
This simplified view shows the basic logic, but the reality is a bit more complex. The algorithm doesn't make isolated yes/no decisions—it's constantly balancing multiple factors and objectives that most users never see.
The Reality
"Going viral" isn't random luck—it's systematic distribution.
Platforms don't just want you to go viral—they need you to go viral.
They need us far more than we need them. Their entire business model depends on human behavior they cannot manufacture. Bot views don't buy products. Fake engagement doesn't generate targeting data. Platforms need genuine human attention to sell to advertisers.
The algorithm provides infrastructure, platforms provide distribution, people like you and me make it profitable.
Viral content isn't just algorithm-friendly—it's fundamentally human-compelling.
Without us, platforms become empty digital real estate. This dependency creates leverage—but only if you understand how to use it.
So stop optimizing for the algorithms approval. It’s indifferent—until it spots a revenue opportunity.
When a post is fundamentally compelling, the algorithm has no choice but to distribute it.
The Illusion of Control
Most businesses operate under a dangerous illusion: they think they can control the algorithm through tactical optimization.
Post at optimal times. Use trending hashtags. Boost engagement artificially. Game the system through technical manipulation.
This approach fails because it misunderstands the fundamental power dynamic. You don't control the algorithm. The algorithm is controlling you.
It’s time to flip the script.
What This Means
Algorithms will continue evolving, but the underlying business logic remains constant: platforms need to maximize attention to maximize revenue.
The specific tactics that work today will become obsolete tomorrow. The strategic understanding of how attention economy businesses function? That knowledge compounds.
The most successful businesses in the 21st Century won’t treat algorithms as obstacles, but as distribution partners.
The Choice
We have two options: waste our time trying to game systems we can't, and never will control, or invest our energy in leveraging the very nature of the system.
The first approach creates dependency and anxiety. The second creates strategic advantage and growth.
The algorithm isn't your enemy. It's not your friend either.
It's a tool designed to serve platform profitability. That’s it.
Accept this, and the dynamic changes entirely.
So don't chase the algorithm. Make the algorithm chase you.
Hi Caterina. This is an area that I’ve not given any attention to. A couple of Qs: (I) is this article specific to Substack or general social media algorithms? (II) Am I missing out by not paying more attention to the algorithm? As you say, it’s watching me so why worry?
It was an interesting read, the knowledge was well presented but then it didn’t feel like it hit at the end, I was left wanting more. Like it built to a crescendo then had a soft close. Is there more of a follow up to this piece that you’d direct my attention to?