Summary and Analysis of the Long Tail Book and how to implement it to businesses

1. The Long Tail 2008-11-05 1 Written by Jennifer Ahn soojin.jennifer@gmail.com

2. hit driven economics What is Log Tail Death of the Hits Examples, Environment what is the breakthrough characteristics ? why? ( driving force) On line businesses Social ( internet ) environment Attribute to realize Long Tail business Essential component Recommendations 2008-11-05 2 Written by Jennifer Ahn soojin.jennifer@gmail.com

3. What is Long Tail? The world has been driven by the hit. Now, the niches cannot be negligible The demand of niches never fell to zero The tail of available variety is far longer than we realize It’s now within reach economically All those niches, when aggregate, can make up a significant market The probability of hit is getting lower, the abundance is getting bigger ! Getting thinner Getting longer “The biggest money is in the smallest sales” – venture capitalist Kevin Laws Never zero 2008-11-05 3 Written by Jennifer Ahnsoojin.jennifer@gmail.com source : The long Tail

4. 2008-11-05 4 Written by Jennifer Ahnsoojin.jennifer@gmail.com source : The long Tail

6. With this hit driven mind set, history is written by blockbusters.

7. If it is good enough, it will be hit. The niches are worse than hits.

9. Everyone’s in it for the money,

10. The only success is mass success

11. “Direct to video” = bad,

12. “ Self Publish” = bad

13. “Independent” = “They couldn’t get a deal”

14. Amateur = amateurish

18. Apples Garage band,

19. Astronomy’s Pro-Am movement

20. Wikipedia peer production

21. Every one can distribute their own content

22. Examples

23. Internet newspaper

24. Lulu.com ->Self distribution site

25. CNN i-report

26. Directly connect supply and demand efficiently

27. Lower the search cost, minimize hassle, wrong turns

28. Explore unknown together

29. Examples

30. Google wisdom-of-crowds

31. Amazon recommendations

32. customer review 2008-11-05 8 Written by Jennifer Ahnsoojin.jennifer@gmail.com

34. Examples Lulu.com : DIY publisher Not for the money, but for distributing your message. Use it for reputation. The traditional line between producers and consumers has blurred Amazon. com : Inventory on Demand Virtually connect centralized supply with scattered demand Print-on-demand : The idealized form books staying as digital files until customers are purchase  Near-zero inventory cost 2008-11-05 Written by Jennifer Ahnsoojin.jennifer@gmail.com 10 (Democratize the tools of distribution ) ( Connect supply and demand )

35. What are breakthrough characteristics ? Why do they do it? In the hit-driven economy, the business model is based only on money, but, in the log-tail economy, there are other reasons like “reputation” They take advantage of internet to achieve reputation and gain the money in other way “Reputation economy” , “Gift economy”, “Exposure culture” “ The big sin in exposure culture is not copying” – Tim Wu, a Columbia University law professor Copyright is essential Different objectives, motives, methods Gray area about copyright (independent labels, academic presses) Give up some of their copyright 2008-11-05 11 Written by Jennifer Ahnsoojin.jennifer@gmail.com

39. Main effect

40. Helping people move from the world they know ( hit) to the world they don’t know ( niches) ,

41. Driving demand down the tail by revealing goods and services that appeal more than the lowest-common-denominator fare 2008-11-05 14 Written by Jennifer Ahnsoojin.jennifer@gmail.com The world of scarcity The world of Information The world of abundant (Recommendation age) How to gather the information How to hunt the information How to use the filters Niches comfortable Filter the noises for me Just Fit my needs Tailored Good filters

44. Pre-filters is trying to predict what will fit for customers needs  predicting tastes

45. Post-filters is collaborative filtering based on wisdom of crowds, coming after publication  measure the tastes of customers self-correct the errors and never disappear entirely 2008-11-05 Written by Jennifer Ahnsoojin.jennifer@gmail.com 16

48. Although the demand has shifted to the Tail, The Long tail theory doesn’t mean the abandon of the hit economy

49. Conventional view is that more choice is better, but there is TheParadox of Choice – 2004, Barry Schwartz“Why Choice Is De-motivating” : The more choice, the more negative of aspect of having a multiple of options begin to appear.  The Hits let customers know where to start and the filters make selection process easier 2008-11-05 Shifting demand (because of 3 aspects) Both hits and niches should be co-exist Written by Jennifer Ahnsoojin.jennifer@gmail.com 18

54. Information about buying patterns, when transformed into recommendations, can be a powerful marketing tool

57. Wisdom of crowds  ① People are information-rich, ② easy to compare goods, ③spread the word about what they like