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The Long Tail
Transcript of The Long Tail
products produced outweigh
the most popular products the hits the obscure The 80/20 Rule says ignore the long tail, and just focus on the head Now with online distribution and retail... (aka "the head") (aka "the tail") the head the tail why? Prior to the internet, production, distribution
and consumption focused on a few hits because of
scarcity of resources - there simply was not
enough time, space, or money for businesses to
offer everything to everybody. This is the world of Scarcity we are now in a world of abundance what about those companies
who are not leveraging the long tail? and the differences are profound 2005 Statistics:
Hollywood box office fell 7%, continuing a decline in attendance that started in
2001 and appears to be accelerating.
Newspaper readership is now at levels not seen since the 60s.
Magazine newsstand sales are at their lowest levels.
The Networks' share of the TV audience has fallen from three-quarters to less than half.
Long Tails EVERYWHERE!!! Google has found ways to tap the Long Tail of advertising, making it the number one search engine in the US MICROSOFT is extending the Tail of
video games into small and cheap games
you can download on its Xbox live network Open-source software projects such as Firefox are the Long Tail of programming talent Anheuser-Busch applied
the Long tail model to
market niche liqueur products If you just have the products at the Head, you find that very quickly your customers want more and you can't offer it. If you just have the products at the Tail, you find that customers have no idea where to start because everything you're offering is unfamiliar to them. The importance of offering the stuff at both the
Head and the Tail is that you can start in the world
that customers already know:familiar products that tap into and define a space. The secret to a thriving Long Tail business? 1. Make everything available.
2. Help me find it. Now that you got the big picture here are nine rules of successful Long Tail aggregators: today the online sides of Wal-Mart, Best Buy,
Target, and many others are using their existing
warehouse networks to offer far more variety
online than they do in their stores. "Peer-production" created eBay, Wikipedia,
Craigslist, Myspace, and provided Netflix with hundreds of thousands of movie reviews.
One of the symptoms of scarcity thinking is assuming
that markets are zero-sum; everything is an either/or
choice. But in markets with infinite capacity, the right
strategy is almost always to offer it all. In abundant markets, you can simply throw
everything out there and see what happens,
letting the market sort it out. One of the most powerful features of digital markets
is that they put free within reach; because their costs
are near zero, their prices can be too. because digitial services are so cheap, the free
customers cost the company so little that it
can afford to convert only a tiny fraction of
them to paying customers. Already one of the most common business
models on the Internet is to attract lots of users
with a free service and convince some of them to upgrade to a subscription-based "premium" one that adds higher quality or better features. http://www.thelongtail.com/ http://www.wired.com/wired/archive/12.10/tail.html For more information on the Theory of the Long Tail visit these sites: What is the
LONG TAIL THE NEW GROWTH MARKET: obscure products you can't get anywhere but online WELL... the 'hits' the 'obscure' World of Scarcity World of Abundance Rule 2: Let customers do the work Rule 7: think "and," not "or" Rule 8: trust the market to do your job Rule 9: understand the power of free Information about buying patterns, when transformed into recommendations, can be a powerful marketing tool. If you focus on distributing to just one customer group, you risk losing others.
One size fits one, many sizes fit many. In abundant markets, variable pricing can be a powerful technique to maximize the value of a product and the size of the market. Rule 1: Move inventory way in... or way out Rule 3: One distribution method doesn't fit all Rule 5: one price doesn't fit all Rule 6: Share information http://lazy-brat.blogspot.com/2010/02/pareto-long-tail-and-1000-true-fans.html See also this blog for a look at 1000 fans Rule 4: one product doesn't fit all