Yu jeffrey hu is an assistant professor of management information systems at the krannert school of purdue university. The long tail has possible implications for culture and politics. This is the most important rule that business owners need to understand. In the long tail, chris anderson offers a visionary look at the future of business and common culture. This paper illustrates that small and micro enterprises have distinct longtailed effect on internet finance through the features of long tail market and pareto distribution,their demand of financing. The long tail theory took shape in an article by chris anderson, editor of wired magazine, which grew into the 2006 book the long tail. The book was initially published on july 11, 2006, by hyperion. Report challenges long tail theory on p2p networks wired magazine editorinchief chris andersons long tail theory article, book, blog predicts that.
The long tail pdf summary chris anderson 12min blog. Long tails are common in online markets, and have enabled innovative businesses, that might not have ourished outside of long tailed markets, to excel and become very successful. Networks, social networks, electronic commerce, recommender systems, gini coefficient, long tail, influence, social media, web 2. This talk was presented at an official ted conference, and was featured by our editors on the home page. Microfinance, the long tail and mission drift sciencedirect. Economics of long tale literature highlights new web 2. I think elberses study validates the part of the long tail theory most relevant to small businesses that long tail niche opportunities are growing in number and importance. Analysis of internet finance based on the long tail theory. But where the long tail works, minority tastes become available and individuals are presented with a. Report challenges long tail theory on p2p networks wired. In his response, debating the long tail, chris anderson certainly makes a valid point about the need to look at the longtail phenomenon both in a relative and an absolute sense. The long tail theory 2006 chris andersonthe long tail theory describes how the internet has influencedeconomics, commerce and consumption. Numerous hits existed as they do know, but only a few of them dominated the scene. Erik brynjolfsson from mits sloan school of management and jeffrey hu from purdues krannert school of management did some of the early work on estimating amazons long tail, which gave me both an analytical framework on which to build the theory and the con.
Download it once and read it on your kindle device, pc, phones or tablets. The long tail summary go 3040 years back in time and analyze the music hits back then approximately the period between 1970 and 1980. If you are not yet a subscriber to this blog simply enter your email address in the box on. Theres no doubt that longtail keywords are popular among content marketers, bloggers, and seos. For the first time in history, archives have a business model. The long tail, in business, is a phrase coined by chris anderson in 2004. The theory of the long tail can be boiled down to this. Anatomy of the long tail erik brynjolfssonis the director of the mit center for ebusiness and the schussel professor of management at the mit sloan school of management. Long tail in this lecture we will learn about impacts of the long tail1 on internet commerce. Long tail is the idea of chris anderson that was posited in the october 2004 issue of wired magazine that suggests that the online marketplace is drifting away from mainstream products and moving towards niche products. Understand the essentials of the long tail theory for business in just 50 minutes with this practical and concise book. In long tailed distributions a highfrequency or highamplitude population is followed by a lowfrequency or lowamplitude population which gradually tails off asymptotically. A number of academic long tail specialists cropped up in the mid2000s to test this theory, and most point to a more complicated conclusion that a true long tail business is rare, and less universal. If we continue with s example, we will see that the impact on business can be very different if we use the long tail theory.
A few are of moderate value, as indicated by the much smaller bars in the middle of the histogram. It can be concluded that there is a need for reducing interest rates. Anderson argued that products in low demand or with low sales volume can collectively make up a market share. Pdf this paper investigates what economics of long tail is bringing to branding. The book, andersons first, is an expansion of his 2004 article the long tail in the magazine. Many of our assumptions about popular taste are actually artifacts of poor supplyanddemand matchinga market response to. Use features like bookmarks, note taking and highlighting while reading the long tail. In fact, if the gap had understood the long tail theory as it applied to its own industry, they might have avoided their train wreck by anticipating that their gap brand could not be for everybody, all the time and forever.
Life after death experience nde with steve gardipee, vietnam war story one of the best ndes duration. Revisiting the long tail theory as applied to ebooks. Amazon, one of the words most successful ecommerce website, uses the long tail theory business model which has given them massive advantages over their competitors and has made them one of the most powerful and popular sites in the world. Anderson included the market concept into paretos theory to provide a larger picture. Regardless, most keyword spectrums include the long tail, those with just one or two monthly searches. Postentry product and technology innovation incentives may be inefficient in the long tail market structure because producers can soften price. A decade has passed since chris anderson wrote the long tail. Thus the list of longtail keywords is continually growing. For ecommerce seo, dont ignore the long tail practical. Long tail the new growth market obscure products you cant get anywhere but online product not available in o. Based on the long tail theory,this paper analyzes the internal logic betweeninternet finance and the financing problems of small and micro enterprises.
Why the future of business is selling more for less, and his theory is being proven as. Yoni ayiekoh the long tail was coined by wired magazine writer chris anderson in october 2004. A typical example of the long tail theory in action is amazon. Therefore, the main focus is on mass market demand, while everything that is not profi table enough is excluded. A very, very few are breakthroughs, as illustrated by the farright outliers, which are referred to as the long tail of innovation. Evidence from the recorded music industry laurina zhang october 27, 2014 abstract digitization has impacted rm pro tability in many media industries by lowering the cost of copying and sharing creative works. Amazon had not yet launched the kindle that came at the.
The long tail theory is a cool but misunderstood theory. It is interesting to note that the long tail theory was first published by wired magazine editor chris anderson 10 years ago october 2004, a few years after the dotcom bubble, when internet was still in its infancy it was 11 years old then. That was the idea that there was gobs of money to be made in the more obscure tastes of any given market, enabled by the web. Why the future of business is selling less of more is a book by chris anderson, editor in chief of wired magazine. It refers to the statistical property that a larger share of the. Digital markets are tremendously powerful because costs are near zero.
The long tail is the name for a long known feature of some statistical distributions such as zipf, power laws, pareto distributions and general levy distributions. Anderson expanded the theory to explore implications for culture, and for business, and coined the term long tail. Its one that you need to keep reminding yourself off, and that, if you havent heard of, will make you feel. Almost all inventions are useless, as indicated by the large amount of mass on the far left. This paper investigates the internets long tail phenomenon. This model is used to illustrate the distribution of a companys turnover for all of its products, from highdemand bestsellers to niche products which only. Chris anderson coined the term the long tail to describe a family of business models emerging as a result of the. Today midia consulting is proud to announce the publication of an important new report. Since broadband wasintroduced in 2001, these impacts have been most prominent. The long tail search is a phrase coined by wired editor chris anderson in an article published by wired in october 2004, which later became a book published by hyperion in july 2006 in his discussion chris anderson says the long tail is the theory that our culture and economy is increasingly shifting away from a focus on a relatively small number of hits mainstream. The first, and generally accepted theory, is that a. Long tail is a concept in statistics, describing the distributions with heavy tails, i. Essentially, the long tail theory was playing out in the real physical world even before the internet made its impact.
Longtail keywords are difficult to research because they dont appear in many keyword tools. Since the long tail is already ten years old, this has become a duuuh, obvious idea but only in hindsight. After collating the opinions of scholars specialized in the tourismsector and travel agents interviewed through semiopen questions, the study investigates the long tail theory s suitability and. According to the long tail theory, this could be done by using efficient technology, as it has been achieved in the ecommerce sector. The longtail phenomenon, he argues, will reshape our understanding of what people actually want to watch or read, etc. However, information technology in general and internet markets in particular have the potential to substantially increase the collective share of niche products, thereby creating a longer tail in the distribution of sales. For example, yesterday i was helping a guy in the essential oils business to understand how a blog could help him. What is long tail in terms of marketing and advertising. Pim for long tail 3 long tail profi t from numerous niche products in a stationary distribution business, the range has to be closely linked to demand due to the limited sales area available.
If youre related to rip van winkle, the long tail theory suggests that the dramatically lower distribution costs for media such as music and movies enabled by the internet has the potential to reshape the demand curve for media. The long tail sales volume popularity number of products head tail head. The long tail approach, by contrast, is to simply dump huge chunks of the archive onto barebones dvds, without any extras or marketing. The report is available free of charge to music industry blog subscribers. Chris anderson, then the editor of wired, explores the four key stages of any viable technology. Where the opportunity cost of inventory storage and distribution is high, only the most popular products are sold. Think of a silhouette of a brontosauras on a graph theres a head, a midsection and a tail. Long tail effects and exploring their implications.