This theory is supported by the growing number of online marketplaces, which facilitate competition for shelf space and traditional distribution channels and enable the sale of many products, particularly over the internet. Anderson argues that the profitability of these products could increase as consumers move away from conventional markets. The long tail concept takes into account less popular products that are in less demand. In 2006, Anderson also wrote The Long Tail: Why the Future of Business is Selling Less of More. In 2004, Anderson coined the term “long tail” after writing about the concept in which he was editor-in-chief. He also mentions blogs and wikis as a long-tail model, as more people than ever contribute editorial material.Ĭreate Your Long Tail Strategy Now Understanding the Long Tail TheoryĬhris Anderson is a British-American writer and editor best known for his work for Wired magazine. Although a smaller quantity of each item is sold, there is a much greater variety for sale in the mass market.Īnderson says the long tail manifests itself at Google and eBay, which generate significant revenue from dealing with many customers. Low-volume items spread out on the chart’s x-axis create a long tail strategy that generates more sales overall. The title refers to a graph showing that companies can sell fewer products in bulk rather than a large quantity sold to a small number of people.
Theorized by Wired magazine editor Chris Anderson, who turned the term into a book called “ The Long Tail: Why the Future of Business is Selling Less of More” in 2006. Books, videos, and music sales, where a wide range of products have benefited significantly from this approach.
Another critical factor is that products recommendations can encourage buyers to consider more.
Online retailers can often make more money than their brick & mortar counterparts since there is unlimited space to sell products.
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