THE LONG TAIL EFFECT: INS AND OUTS.• What is the long tail?• How did it emerge?• Examples of companies flourishing in the long tail.• What are the advantages of the long tail effect?
THE LONG TAIL• A solution to the mass supply and demand culture of the 21st century.• A market place without the limits of a conventional retailer (infinite shelf space)• A market that has allowed obscure, niche products to become easily available• Formerly sub-economic products and customers are suddenly becoming the biggest market of all.
THE LONG TAIL• Its emergence came through web 2.0:• A rich user interface- easy interface, page navigation and purchasing facilites- desirable way to purchase items• Collective intelligence- “Others who purchased this product also liked…”• These circumstances allowed the right environment for the long tail to develop in to what it is today.
LONG TAIL• Amazon- arguably the most famous companies online. Product: all manner of things are available for purchase. Primarily selling novels (mainstream and obscure) total inventory of 2.3 million- a much wider range than traditional retailers.• iTunes- Online music retailer owned by Apple. Product: MP3s (music files), recently films and phone applications.• Netflix- Films and TV series available online with a £6 monthly subscription. 25,000 films available for streaming
LONG TAIL• The long Tail provides a method in which media can be consumed/purchased on a larger scale than traditional media outlets. Eg rhapsody/itunes > wal mart.• A solution to the physical constraints of a shop• Niche market products have a platform for mass sales , traditional retailers would not stock obscure products to save room for mainstream blockbuster’s• Automated suggested products allow niche products to be seen and increase customer satifaction