He popularized the idea that online channels could profitably market and sell obscure products within the long tail to a global audience. Social networks are an example of this effect: a celebrity will start with more connections and gain new connections faster than most users, thanks to the reach of their already extensive network.ĭuring the ecommerce revolution of the early 2000s, journalist Chris Anderson observed that digital businesses like Amazon, Netflix, and iTunes could benefit from the long tail due to being essentially free of physical constraints. Long-tail patterns appear when popular items become even more popular due to a positive feedback loop (also known as the "success breeds success" effect). These predictions led companies to emphasize popular, mainstream items and target broad markets - and thus focus on the head part of the sales power law. This stretching can eventually lead to the long tail representing a significant portion of all items and a meaningful portion of sales.īefore the digital revolution, businesses had to predict which products would sell the most to their customers due to the physical and economic constraints of acquiring, merchandising, and distributing products. Over time, the members within the head will change and the long tail could stretch on as new content is added. The sales curve typically takes the form of a power law, with the head including a few popular items that generate substantial results and a long tail comprising the numerous remaining items. A long-tail strategy involves efficiently exploiting these low-impact - but numerous - data points for an aggregated benefit. When you plot sales data, it typically takes the form of a power-law distribution, composed of a head containing a small number of dominant products and a long tail spanning a large number of rarely sold products.ĭefinition: The l ong tail refers to the data points at the trailing end of a power-law distribution. Those with niche tastes had a problem - they could settle for what was available, look up a specialist vendor in the phone book, or buy nothing at all. Discovering a new band meant listening to the radio, attending concerts, buying a tape or CD, or asking friends. Years ago, if you wanted to purchase a new shirt or book, you had to visit a store and pick among the available products for sale.
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