Long Tail: Difference between revisions
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The Long Tail concept was pioneered by Chris Anderson. | The '''Long Tail''' concept was pioneered by Chris Anderson. | ||
More information: http://longtail.typepad.com/ | More information: http://longtail.typepad.com/ | ||
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"The concept of the Long Tail is that globalization, new tools of production, and the Internet have made it possible to radically increase the supply and demand of niche products (in certain product categories). In traditional markets, based on scarcity of shelf space and limited product diversity, the vast majority of revenues are derived from a very limited number of products. In long tail markets, a diversity of products made by new entrants (via newly democratized tools of production and globalization), in combination with unlimited low cost shelf space (the Internet), and an accelerated word of mouth (the Internet) have radically expanded the supply curve. Additionally, this newly diverse supply has energized demand for niche products that meet specific needs. In a traditional market, hit products often get 80% of the revenue. In a long tail market, hit products get 50% of the revenue while the other 50% is shared by a plethora of niche producers." | "The concept of the Long Tail is that globalization, new tools of production, and the Internet have made it possible to radically increase the supply and demand of niche products (in certain product categories). In traditional markets, based on scarcity of shelf space and limited product diversity, the vast majority of revenues are derived from a very limited number of products. In long tail markets, a diversity of products made by new entrants (via newly democratized tools of production and globalization), in combination with unlimited low cost shelf space (the Internet), and an accelerated word of mouth (the Internet) have radically expanded the supply curve. Additionally, this newly diverse supply has energized demand for niche products that meet specific needs. In a traditional market, hit products often get 80% of the revenue. In a long tail market, hit products get 50% of the revenue while the other 50% is shared by a plethora of niche producers." | ||
(definition from Global Guerrillas weblog) | (definition from Global Guerrillas weblog) | ||
Example of one of the effects of the long tail: the dramatic growth of the used books sector through online sales, see http://www.bisg.org/news/press.php?pressid=29 | |||
[[Category:Encyclopedia]] | [[Category:Encyclopedia]] | ||
[[Category:Business]] | [[Category:Business]] | ||
Revision as of 10:05, 7 March 2006
The Long Tail concept was pioneered by Chris Anderson.
More information: http://longtail.typepad.com/
"The concept of the Long Tail is that globalization, new tools of production, and the Internet have made it possible to radically increase the supply and demand of niche products (in certain product categories). In traditional markets, based on scarcity of shelf space and limited product diversity, the vast majority of revenues are derived from a very limited number of products. In long tail markets, a diversity of products made by new entrants (via newly democratized tools of production and globalization), in combination with unlimited low cost shelf space (the Internet), and an accelerated word of mouth (the Internet) have radically expanded the supply curve. Additionally, this newly diverse supply has energized demand for niche products that meet specific needs. In a traditional market, hit products often get 80% of the revenue. In a long tail market, hit products get 50% of the revenue while the other 50% is shared by a plethora of niche producers." (definition from Global Guerrillas weblog)
Example of one of the effects of the long tail: the dramatic growth of the used books sector through online sales, see http://www.bisg.org/news/press.php?pressid=29