CCV Week 11 - The Long Tail Theory

The Long Tail theory explains expanding sales in the niche markets.  Chris Anderson, editor in chief of Wired magazine, writes about this phenomenon in his book published 2006  titled “The Long Tail: Why the Future ofBusiness Is Selling Less of More.”  

Using marketing resources such as reviews by customers and recommendations of similar products, companies such as Amazon, Netflix, Google, iTunes, Audible and eBay have expanded their sales from mass market products to more select niche items; in essence, selling less of one or two well known items to selling more of a variety of items not usually seen on shelves in stores. 

Anderson points out that accessibility of production tools (such as GarageBand for musicians or Audacity for radio show hosts now podcasters) and the internet for distribution of those products are also necessary to both produce a niche product and allow access to that product.

Thanks to the internet my world is enriched.  I have choices I never had before.  I can explore different interests through Amazon, Netflix, Google, iTunes, Audible and eBay.

I can give extraordinary gifts.  I can help support artists through purchase of their crafts or music. 

If I owned a business I could expand my customer base through the internet. I also could expand my inventory.  If I wanted to try my hand at podcasting or blogging or vlogging I could set up a website or build an audience and perhaps start a new successful career.

Indeed, the phenomenon of the “Long Tail”  affects everyone’s life by giving more choice.

Resources:

http://en.wikipedia.org/wiki/Long_Tail

http://www.longtail.com/about.html

http://www.wired.com/wired/archive/12.10/tail.html

http://www.amazon.com/The-Long-Tail-Business-Selling/dp/1401302378