[39], Also in 2008, a sales analysis of an unnamed UK digital music service by economist Will Page and high-tech entrepreneur Andrew Bud found that sales exhibited a log-normal distribution rather than a power law; they reported that 80% of the music tracks available sold no copies at all over a one-year period. In October 2004, author and entrepreneur Chris Anderson introduced us to “ The Long Tail.” Two years later, he produced his now-notable book, “Long Tail: Why the Future of Business is Selling Less of More,” which is the opposite of selling more of less. This created a niche market for those who enjoy books about mountain climbing even though it is not considered a popular genre supporting the long tail theory. (2011). Anderson cites earlier research by Erik Brynjolfsson, Yu (Jeffrey) Hu, and Michael D. Smith, that showed that a significant portion of Amazon.com's sales come from obscure books that are not available in brick-and-mortar stores. The intersection of viral marketing, online communities and new technologies that operate within the long tail of consumers and business is described in the novel by William Gibson, Pattern Recognition. For the thousands of SolarWinds customers who may have installed a trojaned update planted by attackers earlier this year, the next few days and weeks will be tense and stressful as the incident response teams work to determine what, if any, damage has been done. We don’t share your credit card details with third-party sellers, and we don’t sell your information to others. It shows the demand for keywords related to batteries, from frequently searched terms at the top to low-volume queries at the bottom. In "long-tailed" distributions a high-frequency or high-amplitude population is followed by a low-frequency or low-amplitude population which gradually "tails off" asymptotically. Beautiful girls waited on him hand and foot, hoping for an opportunity to please him. He writes about a book titled Touching the Void about a near-death mountain climbing accident that took place in the Peruvian Andes. Sometimes an intermediate category is also included, variously called the body, belly, torso, or middle. 2 Make a slipknot in the middle of the … The New York Times bestseller that introduced the business world to a future that s already here -- now in paperback with a new chapter about Long Tail Marketing and a new epilogue. Find all the books, read about the author, and more. Appl. Before goods can be put on shelves, they have to be made, and so Anderson identifies the first force of the Long Tail as "democratizing the tools of production. The book was initially published on July 11, 2006, by Hyperion. [2][3][4] Intuitively, a distribution is (right) long-tailed if, for any fixed amount, when a quantity exceeds a high level, it almost certainly exceeds it by at least that amount: large quantities are probably even larger. Look it up now! This suggests that a variation of one mechanism (internet access) or relationship (the cost of storage) can significantly shift the frequency of occurrence of certain events in the distribution. These may not always attract the highest level of viewership, but their business distribution models make that of less importance. Why Target Long Tail Keywords? It often contains a head term, which is a more generic search term 1 or 2 words in length. Bessis, Jöel "Risk Management in Banking". Anderson discusses three themes that are leading to a longer tail in business — democratization of production, democratization of distribution and … This can, in turn, have the effect of reducing demand for the most popular products. The long tail presents opportunities for various suppliers to introduce products in the niche category. Long tail keywords: unicorn games online, unicorn costumes for kids, unicorn videos on youtube. Long tail is a phrase popularized by Chris Anderson, former editor of Wired Magazine, in 2004. All day he bellowed, blustered and belched from his throne atop a tall, glassy tower in the big city. Anderson described the effects of the long tail on current and future business models beginning with a series of speeches in early 2004 and with the publication of a Wired magazine article in October 2004. Chris Anderson's and Clay Shirky's articles highlight special cases in which we are able to modify the underlying relationships and evaluate the impact on the frequency of events. He was the king of the entertainment and business jungle. The competitive threat from these niche sites is reduced by the cost of establishing and maintaining them and the effort required for readers to track multiple small web sites. 's)to distribute crowd sourced donations made by Kiva.org lenders. Long Tail Kitty: Come Out and Play. Anderson, Chris (December 13, 2004)"The Long Tail" issue 10.01. In support of their findings, Wenqi Zhou and Wenjing Duan not only find a longer tail but also a fatter tail by an in-depth analysis on consumer software downloading pattern in their paper "Online user reviews, product variety, and the long tail"[1]. For example, new items constantly enter most fashion markets. Some of the most successful Internet businesses have used the long tail as part of their business strategy. Their data across 200 subject areas shows that a doubling of this influence leads to a 50% increase in revenues from the least popular one-fifth of books.[24][25]. Consider the screenshot below from seoClarity, a SaaS platform. 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. The Long Tail philosophy presumes that our culture and financial system is gradually moving away from a focus on a relatively small number of “hits” (typical products and marketplaces) at the head of the demand curve and to a large number of niches in the tail. The long tail concept has found some ground for application, research, and experimentation. He drank martinis for lunch. After viewing product detail pages, look here to find an easy way to navigate back to pages you are interested in. It sent forward ceaseless waves of ideas, products and services that everyone purchased and used. Definitions by the largest Idiom Dictionary. [12] The concept drew in part from a February 2003 essay by Clay Shirky, "Power Laws, Weblogs and Inequality",[13] which noted that a relative handful of weblogs have many links going into them but "the long tail" of millions of weblogs may have only a handful of links going into them. The long tail business strategy was coined by Christopher Anderson, then Editor of Wired, in 2004, to describe a new business strategy that allowed companies to realize significant profits by selling low volumes of hard-to-find items. Frequency distributions with long tails have been studied by statisticians since at least 1946. The long-tail distribution applies at a given point in time, but over time the relative popularity of the sales of the individual products will change. Long Tail. Though nicely captured, it's an obvious trend. To get the free app, enter your mobile phone number. I mean that more in the sense that it is something I know but really haven't taken the time to understand or fully appreciate. There was a problem loading your book clubs. Its aim is to offer very small credits to lower-middle to lower class and poor people, that would otherwise be ignored by the traditional banking business. Because online video rental provider (such as Amazon.com or 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. These encourage the diversification of products. They found that a large proportion of Amazon.com's book sales come from obscure books that were not available in brick-and-mortar stores. The term is often used loosely, with no definition or arbitrary definition, but precise definitions are possible. With the digital and hybrid retailers there is no longer a perimeter on market demands. [7][9] Anderson elaborated the concept in his book The Long Tail: Why the Future of Business Is Selling Less of More. The distribution could involve popularities, random numbers of occurrences of events with various probabilities, etc. This model can provide further predictions into markets with long-tail distribution, such as the basis for a model for optimizing the number of each individual item ordered, given its current sales rank and the total number of different titles stocked. Where the opportunity cost of inventory storage and distribution is high, only the most popular products are sold. For for the term used in statistics, see. Chris Anderson argues that while quantities such as human height or IQ follow a normal distribution, in scale-free networks with preferential attachments, power law distributions are created, i.e. At the beginning it seemed to me like nobody could argue with the main idea behind the book. Kiva.org is an organization that provides micro credits to people worldwide, by using intermediaries called small microfinance organizations (S.M.O. A 2008 study by Anita Elberse, professor of business administration at Harvard Business School, calls the long tail theory into question, citing sales data which shows that the Web magnifies the importance of blockbuster hits. The Manx Cat,the powerful King of the Land of Hollyork,was fat and smoked big cigars. The book, Anderson's first, is an expansion of his 2004 article The Long Tail in the magazine. It was shortlisted for the Financial Times and Goldman Sachs Business Book of the Year Award on 18 September 2006. First, natural image and data distributions are (informally) known to be long-tailed, that is have a significant fraction of rare and atypical examples. Not all recommender systems are equal, however, when it comes to expanding the long tail. The author in this paper seeks to describe how long tail distribution is affected by the phrases that people use to describe China. We had caught up earlier in the week to chat about the commercial and industrial (C&I) solar sector, in which my firm specializes and which she researches regularly. This fact has given rise to a keen scientific and social interest in such distributions, and the relationships that create them. 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. The Pursuit of Wow! The internet can still sell physical goods, but at an unlimited selection and with reviews and recommendations. Although I don’t agree with many of the conclusions in their paper (like some other academics, they got confused over definitions of “head” and “tail” and fell into the common trap of doing percentage analysis in an absolute numbers world), the data was interesting. [31], The adoption of video games and massively multiplayer online games such as Second Life as tools for education and training is starting to show a long-tailed pattern. [citation needed], The banking business has used internet technology to reach an increasing number of customers. 99. Examples of behaviors that exhibit long-tailed distribution are the occurrence of certain words in a given language, the income distribution of a business or the intensity of earthquakes (see: Gutenberg–Richter law). Everything of consequence was produced and delivered by the Manx Cat. The big website covers more variety while the small website has only a few niches to choose from. McDonald, Scott. As a rule of thumb, for such population distributions the majority of occurrences (more than half, and where the Pareto principle applies, 80%) are accounted for by the first 20% of items in the distribution. Given the diminishing cost of communication and information sharing (by analogy to the low cost of storage and distribution, in the case of e-tailers), long-tailed user driven innovation will gain importance for businesses. Their analyses suggested that by 2008, niche books accounted for 36.7% of Amazon's sales while the consumer surplus generated by niche books has increased at least fivefold from 2000 to 2008. We identify a total of 97 SMGs, including 70 not previously implicated in prostate cancer, such as the ubiquitin ligase CUL3 and the transcription factor SPEN. He was the King of the Economic Jungle. Among the most representative are: The long tail has possible implications for culture and politics. An analysis based on this pure fashion model[29] indicates that, even for digital retailers, the optimal inventory may in many cases be less than the millions of items that they can potentially offer. This means that a long tail distribution includes many values that are far away from the mean value. Brynjolfsson, Erik; Yu (Jeffrey) Hu, and Michael D. Smith. Favored singers, actors, and writers became heroes. Please try again. The distribution and inventory costs of businesses successfully applying a long tail 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. Looked at from the producers' side, the long tail has made possible a flowering of creativity across all fields of human endeavour. In business, the term long tail is applied to rank-size distributions or rank-frequency distributions (primarily of popularity), which often form power laws and are thus long-tailed distributions in the statistical sense. As the opportunity cost goes down, the choice of TV programs grows and greater cultural diversity rises. A Wharton study details this phenomenon along with several ideas that may promote the long tail and greater diversity.[21]. Bring your club to Amazon Book Clubs, start a new book club and invite your friends to join, or find a club that’s right for you for free. Reviewed in the United Kingdom on April 9, 2012. Vermont’s Long Trail follows the main ridge of the Green Mountains from the Massachusetts-Vermont line to the Canadian border. The events at the far end of the tail have a very low probability of occurrence. In Mexico the banks Compartamos and Banco Azteca also service this customer demographic, with an emphasis on consumer credit. The long tail is a statistical pattern of distribution that occurs when a larger share of occurrences occur farther away from the centre or head of distribution. Specifically, they find that the impacts of both positive and negative user reviews are weakened as product variety goes up. Reviewed in the United Kingdom on June 11, 2011. because some nodes are more connected than others (like Malcolm Gladwell’s “mavens” in The Tipping Point).[10][11]. The Long Tail: Why the Future of Business Is Selling Less of More is a book by Chris Anderson, editor in chief of Wired magazine. The tail becomes bigger and longer in new markets (depicted in red). An MIS Quarterly article by Gal Oestreicher-Singer and Arun Sundararajan shows that categories of books on Amazon.com which are more central and thus influenced more by their recommendation network have significantly more pronounced long-tail distributions. In situations where popularity is currently determined by the lowest common denominator, a long-tail model may lead to improvement in a society's level of culture. Instead of, as Anderson likes to put it "hit culture" we better get used to "niche culture". Long tail definition at Dictionary.com, a free online dictionary with pronunciation, synonyms and translation. The Tails of Two Cats: Manx and Maine Coon, Reviewed in the United States on January 16, 2013. [5] The term has also been used in the finance[6] and insurance business[7] for many years. But where the long tail works, minority tastes become available and individuals are presented with a wider array of choices. Reviewed in the United States on August 13, 2011. The Long Tail “Long Tail Business Models are about selling less of more by focussing on offering a large amount of niche products, while each item sells relatively infrequently.” Aggregate sales of niche products can be as profitable as the traditional sales model, where a small amount of bestsellers account for most revenues. Elberse defined head and tail using percentages, while Anderson uses absolute numbers. It is therefore able to build a viable business stocking a far wider range of movies than a traditional movie rental store. Examples include eBay (auctions), Yahoo! to envision a time in which game-based training devices or simulations will be available for thousands of different job descriptions. The long-tailed skua or long-tailed jaeger (Stercorarius longicaudus) is a seabird in the skua family Stercorariidae. The word "jaeger" is derived from the German word Jäger, meaning "hunter". The Long Tail: Why the Future of Business is Selling Less of More. The Long Tail is really about the economics of abundance. Other very talented people were ignored. Social innovation communities formed by groups of users can perform rapidly the trial and error process of innovation, share information, test and diffuse the results. This concept focuses on the ability to profit by offering something that is specific and harder to find elsewhere, rather … The distribution could involve popularities, random numbers of occurrences of events with various probabilities, etc. [30] The internet has opened up larger territories to sell and provide its products without being confined to just the "local Markets" such as physical retailers like Target or even Walmart. Etymology. Their voices, sometimes very sweet, went unnoticed. Please try again. This fat cat was in charge. certain collaborative filters) can exhibit a bias toward popular products, creating positive feedback, and actually reduce the long tail. The key supply-side factor that determines whether a sales distribution has a long tail is the cost of inventory storage and distribution. Long tail sellers change the shape of demand from “blockbuster” or “superstars” to selling large numbers of unique, niche items. .orange-text-color {font-weight:bold; color: #FE971E;}View high quality images that let you zoom in to take a closer look. On the supply side, the authors point out how e-tailers' expanded, centralized warehousing allows for more offerings, thus making it possible for them to cater to more varied tastes.[20]. [a] Note that there is no sense of the "long tail" of a distribution, but only the property of a distribution being long-tailed. Power law distributions or functions characterize an important number of behaviors from nature and human endeavor. A team at Wharton did some Long Tail analysis on the Netflix ratings data the company released for its Netflix Prize. Even browsing through Amazon and looking for a product within any given category it feels obvious that with the internet entering every stage of production, distribution and consumption we are destined to be faced with ever growing choice of products. Anderson states the book got good reviews, but didn't have much commercial success. as examples of businesses applying this strategy. 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. The work of Benoît Mandelbrot in the 1950s and later has led to him being referred to as "the father of long tails".[8]. An 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."[14]. Results in an innovation effort marketing, Reviewed in the customer demographics of businesses like mass media retail... 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