web marketing - the long tail
DESCRIPTION
Slides of webmarketing course given @ITESO. Set of slides based on the book by Chis Anderson "The Long Tail" that describe the economic model of web business.TRANSCRIPT
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@pfrulas
Webmarketing
The Long Tail
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@pfrulas
What is “The Long Tail” ?
• The Long Tail– Statistical Distribution “very low probability of occurrence”.
• Pareto Principle– 80 / 20 rule
• The Long Tail– Why the Future of Business Is Selling Less of More
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ECAST
• What percentage of the 10,000 albums sold at least one track a quarter ?
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@pfrulas
ECAST
• What percentage of the 10,000 albums sold at least one track a quarter ?
98%
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Touching the Void
• Joe Simpson near fatal climb of the 6344m climb in Peru.
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Into Thin Air
• Joh Krakauser ascent of Mount Everest wich turned catastrophic.
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@pfrulas
Amazon
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@pfrulas
Amazon
"We sold more books today that didn't sell at all yesterday than we sold today of all the books
that did sell yesterday."
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@pfrulas
3 Forces of the Long Tail
• Democratize the Tools of Production
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@pfrulas
Production
• The PC
Give people the capacity to create and GEMS will emerge
# ALBUMS released grew 36% ! - 44,000 in 2004 - 60,000 titles in 05
300,000 free in MySpace
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@pfrulas
New Producers
• Never understimate the power of a million amateurs with keys to the factory– Feb 23, 1987– Kamiokande II
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@pfrulas
3 Forces of the Long Tail
• Democratize the Tools of Distribution
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Distribution
• Wal-Mart set up the worlds most sofisticated supply chain.
• Now you can do it in eBAY
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@pfrulas
3 Forces of the Long Tail
• Connect Supply and Demand
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Connect Supply - Demand
• Search • Filters• Recommendations
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@pfrulas
Long Tail Examples
Force Business Example
1 Democratize Production
Long Tail Toolmakers, Producers
Digital Video cameras, Desktop music and video editing software,
blogging tools
2 Democratize Distribution
Long Tail Aggregators Amazon, eBay, iTunes, Netflix
3 Connect Supply and Demand
Long Tail Filters
Google, Blogs, Rhapsody, recommendations and best seller
lists.
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Music Industry
• Rhapsody Overall
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Brit Rock
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Ethnic Fusion
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@pfrulas
Long Tail Rules
• Make Everything Available• Help me Find it
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@pfrulas
Rules
• Lower your costs– More inventory– Let customers do the work
• Peer production
• Think Niche– One distribution Method doesnt fit all– One Product Doesnt fit all– One Price doesnt fit all
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@pfrulas
Rules
• Lose Control– Share Information– Think “and” not “or”– Trust the market to do the job– Understand the power of “Free”