“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 markets lie and how to get to them. Unlimited selection is revealing truths about what consumers want and how they want to get it, from DVDs at Netflix to songs on iTunes to advertising on Google. However, this is not just a virtue of online marketplaces; it is an example of an entirely new economic model for business, one that is just beginning to show its power. After a century of obsessing over the few products at the head of the demand curve, the new economics of distribution allow us to turn our focus to the many more products in the tail, which collectively can create a new market as big as the one we already know. The Long Tail is really about the economics of abundance. New efficiencies in distribution, manufacturing, and marketing are essentially resetting the definition of whats commercially viable across the board. If the 20th century was about hits, the 21st will be equally about niches.
Customer Reviews
Essay is good enough:
The Essay in wired is good enough. The book is interesting however, just not needed reading if you can find the original essay.
Slick, well written, good insights:
The bad news is that this book is really a long magazine article, which possibly reflects Chris Anderson’s daytime job, editing “Wired”. The Long Tail feels padded and lacks the substance of a real book. Too many of the examples are repeated.
The good news is that the one or two insights of the book really are insightful.
We’ve all heard the 80-20 rule of thumb that 80% of the wealth is health by 20% of the people. (The two numbers don’t have to add up to 100 BTW, but we’ll pass on that.) The distribution of wealth scales. In a total economy worth one billion dollars for one hundred thousand people, that means that the richest 20,000 people have 800 million dollars. But the rule can be applied to a situation as many times as we wish. 20% of 20,000 is 4,000 people who would have 80% of 800 million, or 640 million. We apply it again and find that 800 people have 512 million.
When you plot this on a graph, you’ll find yourself drawing a curve that is very thick at the left (the rich few at the head) and peters out to a long thin tail (the many poor). This is called a power law distribution and many processes in nature and in economics follow it, in particular for consumer markets. Wal Mart & Sears are in the left’s fat head, while the fusion jazz record store is in the curve’s tail on the right.
Anderson’s insight is that the internet has thickened the long tail for markets. Fifty years ago if you wanted to listen to Ethiopean jazz, you had one option: fly to Ethiopia. Thirty years ago you had the second option of going to import jazz record shops in large cities. Today, you can live in Medecine Hat, Alberta and instantly order Ethiopique No. 4 from Amazon. The demand was always there: in a population of millions there’s always one or two eccentrics who want something unusual. More than that, in a population of millions on top of the ordinary necessities found in the fat head, everyone wants something special that belongs in the long tail. The long tail is thickening and the 21st century’s gold mine is probably in it.
Vincent Poirier, Dublin
Short Tale of the Long Tail:
Wired magazine packs some of the best technology writers and new economy experts in the world, and with this book Chris Andersen asserts his position as the leader of the pack. This book has the right mix of the essential ingredients of a good business book: enough rigor for business theory but not so much as to make it dry; enough anecdotes to bring the point home but not so much as to make it repetitive; enough opinions and wit to make the reader question but not so much as to make it biased and shallow.
Like all mainstream business books, this one does not resist the temptation to encapsulate all business and socio-cultural phenomena around one simple theory. However, Anderson maintains the humility to admit discovery than claim invention. Expect this concept to become as widespread and oft-quoted (if not more) in understanding the digital consumer economy, than Geoffrey Moore’s Chasm was/is in understanding the evolution of hi-tech products.
If You’re Stuck in Old Media… This Is Your Ticket:
I’ve constantly searched for a book that accurately describes the changes in media created by my generation. By the time I broke the first few pages of The Long Tail, I knew I found what I was looking for. I currently work in one of the largest industries influencing the spread of long tail industries: mobile.
Many old media companies are struggling to adapt to the changing interests of the younger generation, more specifically, their buying habits. While the wave of “new media” started in the mid-90’s, its affects have not met their peak, and many industries, although on the decline, still have the opportunity to learn from Anderson’s research.
Anderson provides tremendous insight into the impact iTunes and Napster had on Radio, and more specifically, ClearChannel. Never before have I read such a solid perspective as Anderson provides; it almost becomes a blueprint for ClearChannel’s demise.
This is a must read for those stuck in the old media world, or even those well into the new media world. It will change the way you look at your business.
The Long Tale:
You know, we’re just getting started with this whole Internet thing, right?
As an information marketer, I must admit this book really captured my imagination. The long tail concept holds that the digital age (bits) is allowing and encouraging expanded marketing channels that are far superior to traditional brick-and-mortar arrangements (atoms).
Consider Netflix, which can offer limitless movies while your local video store might only offer what they can stock. The key to selling less of more is to make better use of inventory. Netflix and other companies accomplish this by automating a recommendation process with software. I’ve recently read that 90% of Netflix’s inventory turns over every 30 days.
Amazon uses similar recommendation software. In fact, they allow me to recommend my 5 Cool Ideas For Better Working, Living & Feeling (Michael Angelo Caruso) book in this review.
