It’s no secret that I’m a huge fan of Wired. That magazine’s availability at the end of the month is something I look forward to. Any writers affiliation with Wired is something I respect. In the case of the The Long Tail, it’s not just a writer for Wired. It’s the editor, Chris Anderson.
The Long Tail theory started as an investigation into economics, primarily due to the increase in Internet stores such as Amazon and the Apple iTunes music store. These stores are able to offer a thousandfold more content than any real-world store could ever wish to present on its shelves. In fact, a brick-and-mortar store has some real restrictions and a tiny audience to appeal to. The long tail is the phenomenon that permits niche products to be offered to a huge audience and make sales. Whereas a certain CD in a store has a limited shelf life, has to pay its rent, be visible to potential purchasers and appeal to someone to actually be bought, Internet-enabled stores suffer none of those issues. Using filters and search tools, intelligent cross-referencing capabilities and buyer habit tracking, even the most obscure song is able to find an audience and a buyer. Maybe not many, but enough to sell and make a profit.
Anderson takes the reader through many real-world examples, including the creation of the successful Sears-Roebuck catalog that instantly made thousands of products available to millions of Americans, all from the convenience of their homes. More modern examples include iTunes and Amazon which suggest, track and allow potential buyers the ability to sample before purchasing. The argument is that the more choice we have, the more likely it is that we will purchase something that matches those things we tend to prefer. Music is a good example, as suggestions to sample songs from a band we’ve never heard of may provide us with a new outlet to spend cash. That choice, in turn, may lead to something else entirely – these choices would generally not be visible without the advanced search features available.
The description of stores and their planning is fascinating. It’s easy to see how a large warehouse store is unable to afford to stock even a fraction of the CD’s an online retailer has access to. Retail space, rental, visibility and shelf space all play a part. Anderson gives an excellent description of his theory and how it works in practice.
Anderson researched and wrote a short article for Wired magazine. After that, he posted his ideas and comments on a website to gain comment and reviews from readers. Overall, the book is well written, easy to read and understand and full of examples that are relevant for today. If you’re into the web, economics (why?) or enjoy marketing theory, this is for you.