This link has been bookmarked by 129 people . It was first bookmarked on 29 Oct 2006, by Jamie.
-
24 Jan 14
-
28 Oct 11
Mark A.M. KramerThe Long Tail or long tail refers to the statistical property that a larger share of population rests within the tail of a probability distribution than observed under a 'normal' or Gaussian distribution. A long tail distortion will arise with the inclusion of some unusually high (or low) values which increase (decrease) the mean, skewing the distribution to the right (or left).[1]
-
13 Oct 11
-
05 Oct 11
-
The term Long Tail has gained popularity in recent times as describing the retailing strategy of selling a large number of unique items with relatively small quantities sold of each – usually in addition to selling fewer popular items in large quantities
-
The Long Tail: Why the Future of Business Is Selling Less of More
-
The distribution and inventory costs of businesses successfully applying this strategy allow them to realize significant profit out of selling small volumes of hard-to-find items to many customers instead of only selling large volumes of a reduced number of popular items. The total sales of this large number of "non-hit items" is called the Long Tail.
-
Demand-side and supply-side drivers
The key supply-side factor that determines whether a sales distribution has a Long Tail is the cost of inventory storage and distribution. Where inventory storage and distribution costs are insignificant, it becomes economically viable to sell relatively unpopular products; however, when storage and distribution costs are high, only the most popular products can be sold. For example, a traditional movie rental store has limited shelf space, which it pays for in the form of building overhead; to maximize its profits, it must stock only the most popular movies to ensure that no shelf space is wasted. Because Netflix stocks movies in centralized warehouses, its storage costs are far lower and its distribution costs are the same for a popular or unpopular movie. Netflix is therefore able to build a viable business stocking a far wider range of movies than a traditional movie rental store. Those economics of storage and distribution then enable the advantageous use of the Long Tail: Netflix finds that in aggregate, "unpopular" movies are rented more than popular movies.
-
The demand-side factors that lead to the long tail can be amplified by the "networks of products" which are created by hyperlinked recommendations across products
-
Internet companies
Some of the most successful Internet businesses have used the Long Tail as part of their business strategy. Examples include eBay (auctions), Yahoo! and Google (web search), Amazon (retail), and iTunes Store (music and podcasts), amongst the major companies, along with smaller Internet companies like Audible (audio books) and Netflix (video rental).
-
- New media marketing: The building and managing of social networks and online or virtual communities to extend the reach of marketing to the low-frequency, low-intensity consumer in a cost effective way, often through blogs, RSS feeds and podcasts.[citation needed]
- Buzz marketing: The strategic use of word of mouth and transmission of commercial information from person to person in an online or real-world environment.
- Viral marketing: The intentional spreading of marketing messages using preexisting social networks, with an emphasis on the casual, non-intentional and low cost, commonly through YouTube videos, viral emails and standalone microsites.
- Pay per click and search engine optimization: The marketing of websites on search engines such as Google, Yahoo and Bing by focusing on long-tail keywords which have less competition.
- Demand-side platforms/DSPs: Similar to how search engine marketing monetizes the long tail of keywords, auction-oriented buying/selling mechanisms are also viable to help monetize the long tail of ad impressions available across niche publishers in the display advertising realm. Publishers utilize these ad exchange environments, such as Right Media or AdECN, to efficiently sell display inventory that might otherwise go unsold through direct sales force operations. As a result, by January 2011 between 20-25% of all US ad spending was derived from long tail advertisers
Marketing
The drive to build a market and obtain revenue from the consumer demographic of the long tail has led businesses to implement a series of long-tail marketing techniques, most of them based on extensive use of internet technologies. Among the most representative are:
-
-
27 Mar 11
-
09 Nov 10
-
19 May 10
-
01 Apr 10
-
13 Feb 10
-
28 Oct 09
jihshienlu"a concept put forth by Chris Anderson in an October 2004 Wired magazine article which described the niche strategy of businesses, such as Amazon.com or Netflix, that sell a large number of unique items, each in relatively small quantities... The key supp
@Wikipedia @Research @Example Finance Business UniquenessAndDiversity Economics Marketing SocialMedia Internet SupplyAndDemand
-
25 Sep 09
-
01 Sep 09
-
28 Aug 09
-
01 Jul 09
-
23 Jun 09
Dante-Gabryell MonsonThe distribution and inventory costs of these businesses allow them to realize significant profit out of selling small volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. The group t
-
21 May 09
-
03 Apr 09
-
o describe the niche strategy
-
The tail becomes bigger and longer in new markets (depicted in red). In other words, whereas traditional retailers have focussed on the area to the left of the chart, online bookstores derive more sales from the area to the right of the line.
-
The Long Tail: Why the Future of Business is Selling Less of More (2006).
-
This can, in turn, have the effect of reducing demand for the most popular products. For example, Web content businesses with broad coverage, such as Yahoo! or CNET, may be threatened by the rise of smaller Web sites that focus on niches of content, and cover that content better than the larger sites.
-
companies can rely on users of their products and services to do a significant part of the innovation work. Users want products that are customized to their needs.
-
-
17 Mar 09
-
25 Feb 09
-
The group that purchases a large number of "non-hit" items is the demographic called the Long Tail.
-
-
10 Feb 09
-
16 Jan 09
-
10 Dec 08
-
08 Dec 08
-
03 Dec 08
-
The group comprising a large number of "non-hit" items is the demographic called the Long Tail.
-
This suggests that a market with a high freedom of choice will create a certain degree of inequality by favoring the upper 20% of the items ("hits" or "head") against the other 80% ("non-hits" or "long tail")
-
The tail goes to bigger and longer in new markets (such as online bookstores).
-
-
16 Nov 08
-
01 Nov 08
-
05 Sep 08
-
20 Jul 08
-
30 Jun 08
-
27 Jun 08
-
19 Jun 08
-
27 Apr 08
-
08 Apr 08
-
26 Feb 08
-
17 Feb 08
-
31 Dec 07
-
29 Dec 07
Marc LijourHow the low cost of storage and web technologies make the less popular items turn into a more profitable market (eg. Amazon)
article business economics technology social statistics web for:mt8212
-
25 Dec 07
-
03 Nov 07
-
18 Oct 07
-
24 Aug 07
-
31 Jul 07
-
27 Jul 07
-
24 Jul 07
-
24 Jun 07
-
22 Jun 07
-
19 Jun 07
-
22 May 07
-
In these distributions a high-frequency or high-amplitude population is followed by a low-frequency or low-amplitude population which gradually "tails off." In many cases the infrequent or low-amplitude events
-
-
19 May 07
The phrase The Long Tail (as a proper noun with capitalized letters) was first coined by Chris Anderson in an October 2004 Wired magazine article[1] to describe certain business and economic models such as Amazon.com or Netflix. The term long tail is also
anderson article longtail economics stats theory Web2.0 lang:en year:2004 embi07
-
Lambert HellerThe phrase The Long Tail (as a proper noun with capitalized letters) was first coined by Chris Anderson in an October 2004 Wired magazine article[1] to describe certain business and economic models such as Amazon.com or Netflix. The term long tail is also
anderson article longtail economics stats theory Web2.0 lang:en year:2004 embi07
-
03 May 07
Emma CoonanIn these distributions a high-frequency or high-amplitude
population is followed by a low-frequency or low-amplitude population
which gradually "tails off." -
29 Apr 07
-
17 Apr 07
-
17 Mar 07
-
12 Mar 07
Anders Tunold Kråkenes
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
-
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
-
Erik Brynjolfsson, Yu (Jeffrey) Hu, and Michael D. Smith
-
used a log-linear curve on an XY graph to describe the relationship between Amazon sales and Amazon sales ranking
-
Long Tail model may lead to improvement in a society's level of culture
-
72/20
-
consumer benefit (a.k.a. consumer surplus) from access to increased product variety in online book stores is ten times larger than their benefit from access to lower prices online
-
Goodbye Pareto Principle, Hello Long Tail
-
-
21 Feb 07
-
18 Feb 07
-
09 Feb 07
-
02 Feb 07
-
31 Jan 07
-
02 Jan 07
-
30 Dec 06
-
12 Dec 06
-
29 Oct 06
-
24 Jul 06
-
A former 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.
-
-
27 Feb 06
-
21 Jan 06
-
12 Nov 05
-
08 Nov 05
-
26 Sep 05
Would you like to comment?
Join Diigo for a free account, or sign in if you are already a member.