The Long Tail: Why the Future of Business is Selling Less of More
 

The Long Tail: Why the Future of Business Is Selling Less of More

by Chris Anderson

"The Long Tail" is a powerful new force in our economy: the rise of the niche. As the cost of reaching consumers drops dramatically, our markets are shifting from a one-size-fits-all model of mass appeal to one of unlimited variety for unique tastes. From supermarket shelves to advertising agencies, the ability to offer vast choice is changing everything, and causing us to rethink where our... (read more)

Top tags: businesseconomicsinternetweb 2.0marketing (all tags)

 

Member Reviews

  • priyats
    3 of 3 members found this review helpful.
    • Rated 4 stars

    I work in one of the TOP MNCs in India. And typical to all MNCs is the bench concept - a time when you are supposed to work on enhancing your skills. So here I was scouting our library for any skill-enhancing books. I came across this book titled The Long Tail by Chris Anderson. A highly suggested book by one of my professors in IIM K, I decided to read for pleasure than to enhance my skills. And I did.
    This book is an article beaten and stretched into 226 pages. You can easily read just the article The Long Tail that is quite famous and not miss anything. But the idea that Mr. Anderson conveys is so relevant in our internet driven world today that you would want to finish the book. Quite a page turner, this is.

    A not so long something about The Long Tail

    The concept of the long tail, drew in part from an influential February 2003 essay by Clay Shirky, "Power Laws, Weblogs and Inequality" that noted that a relative handful of weblogs have many links going into them but "the long tail" of millions of weblogs may have only a handful of links going into them. Anderson described the effects of the long tail on current and future business models.
    Anderson argues that products that are in low demand or have low sales volume can collectively make up a market share that rivals or exceeds the relatively few current bestsellers and blockbusters, if the store or distribution channel is large enough. Anderson cites earlier research by Erik Brynjolfsson, Yu (Jeffrey) Hu, and Michael D. Smith, who first used a log-linear curve on an XY graph to describe the relationship between Amazon sales and Amazon sales ranking and found a large proportion of Amazon.com's book sales come from obscure books that are not available in brick-and-mortar stores. The Long Tail is a potential market and, as the examples illustrate, the distribution and sales channel opportunities created by the Internet often enable businesses to tap into that market successfully.

    An Amazon employee described the Long Tail as follows: "We sold more books today that didn't sell at all yesterday than we sold today of all the books that did sell yesterday."

    After reading this book, whenever I hear about someone quitting to start on their own, all I can think is whether a Long tail is feasible in their business. Like Anderson points out here, what a Long tail definitely isn't, most of them don't fit into that category. But almost all internet related businesses fall in that category. For example, there's no limit to the number of songs/books/movies that can be provided to the public out there who seem to have an appetite to gobble up almost everything. True, there might not be many takers for an old and obscure song from your parents' teenage days, but by providing access to this song to anyone who might be interested, the revenue you get from it far outweighs your cost. In this case, your cost is almost nothing - another 2-3MB space on a server, which doesn't cost much for you when you have already invested in the server. And people are so different and insatiable, you cannot fail! There WILL be someone who would want that song.

    Let's look at my blog (http:\\girlwithbigeyes.blogspot.com). If you draw a graph with all the blogs in our blogosphere in the X axis and their daily traffic in the Y axis, mine would be somewhere at the far end of the long tail. But still there is a small number of people who consume this blog. And for them, it matters. And that's what makes the long tail successful.

    priyats wrote this review Wednesday, September 12 2007. ( reply | view 1 replies | permalink )
  • rgag86
    • Rated 3 stars

    Had to read this for a media class. I found it pretty interesting. I'm not one to read books like this, so it did a fairly good job of keeping my attention.

    rgag86 wrote this review 3 weeks ago. ( reply | permalink )
  • Leonardo Fontes de Sales
    • Rated 5 stars

    Crhis Anderson discorre sobre a época da abundância criada pela internet em deprimento de uma economia analógica baseada na escassez. Leitura recomendada para economistas, jornalistas, profissionais de vendas, TI e arquitetos da informação.

    Leonardo Fontes de Sales wrote this review Sunday, July 13 2008. ( reply | permalink )
  • Nathan B
    • Rated 5 stars

    An absolute must read for every business leader.

    Nathan B wrote this review Wednesday, July 9 2008. ( reply | permalink )
  • Brad P. from NJ
    • Rated 4 stars

    This book dutifully covers the best practices involved in marketing digital products, and marketing using Social Networks. Nice.

    Brad P. from NJ wrote this review Wednesday, June 25 2008. ( reply | permalink )
  • powersjq
    • Rated 4 stars

    Bottom Line: Like most business books, _The Long Tail_ is about 10 times as long as it needs to be. In this case, however, the book's "one big idea" (and few business books have more) is valuable enough that it merits at least reading the first chapter or two. You might even find yourself reading the whole thing, just to keep thinking about it.

    A question. What percentage of Netflix's catalog (some 50,000 titles) do you suppose gets rented at least once per quarter? Go ahead, guess. When Anderson posed this question, I went for the the old business rule of thumb, the 80/20 split. 20%, I ventured. Not so. 98%. No, that's not a misprint. ninety-flipping-eight percent. The rule: if you give people infinite choice, they will exercise it. But why?

    In a nutshell, the book argues that the natural shape of the demand curve in most instances is what's known as a long-tailed distribution. (Long-tailed distributions resemble hyperbolas--smooth, L-shaped curves which extend to infinity on the bottom-right. Use the Google if you want to see a picture of one.) Lots of attention for a few products (i.e., blockbusters) and much less--but never zero--attention for everything else.

    Andersen argues convincingly that the "head" of the curve, the blockbuster section in which a few products command tons of attention, has been shrinking. That attention has been spilling into the "long tail" of the curve, making it fatter, so to speak. The reason for this is because closed, consolidated distribution networks (mass media, inefficient shipping networks, etc.) have been losing ground to more open, more granular distribution networks (think: the internet). There's now at least as much potential in the tail of the curve as in the head. And so, goodbye mass, blockbuster culture; hello individuated, atomized culture.

    In all fairness to Anderson, the book does a fair job of thinking through some of the more curious implications and counterexamples of the idea. It _is_ a one-trick pony show, but at least it's a good trick.

    powersjq wrote this review Wednesday, June 18 2008. ( reply | permalink )
  • authorpreneur
    • Rated 5 stars

    Chris Anderson breaks down so well where media is heading. This is an excellent look against traditional economics and ways we have thought traditionally. It is so hard to think otherwise after reading this. So many of us are focused on hits when niches is really where markets are going.

    authorpreneur wrote this review Sunday, June 8 2008. ( reply | permalink )
  • Black Mamba
    • Rated 4 stars

    Its the first book i've read on the "concept" - which is a wide phenomenon now. Mr. Anderson has cited relevant examples from nearly all media streams and the result is a revelation. It changes the way one looks at the industry. Must read. thoroughly enjoyable!!

    Black Mamba wrote this review Wednesday, June 4 2008. ( reply | permalink )
  • vikram c
    • Rated 0 stars

    awesome

    vikram c wrote this review Monday, May 19 2008. ( reply | permalink )
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