What is the long tail in business?

What is the long tail in business?

The long tail is a business strategy that allows companies to realize significant profits by selling low volumes of hard-to-find items to many customers, instead of only selling large volumes of a reduced number of popular items. The term was first coined in 2004 by researcher Chris Anderson.

Is Netflix a long tail business model?

Netflix’s strategy is based on the rules of the so-called “Long tail” theory, which argues that products with lower market demand or low sales volume may constitute a market share that rival or surpass the bestselling movies and current blockbusters, but only if the movie distribution channel is large enough.

What is a long tail analysis?

Long tail analysis is a method that graphs the relation between product demand, margin and variability, typically creating a long tail shaped graph. By utilizing long tail analysis to optimize supply chain strategies, we help our clients deliver significant benefits to their customers and increase the bottom line.

What companies use the long tail?

Classic examples of Long Tail businesses include Amazon and Netflix. In addition to online retailers you will also find Long Tail businesses in micro finance and insurance to name just two industries.

Why is long tail important?

Focusing on long-tail keywords is a great SEO tactic. Long-tail keywords get less search traffic, but will usually have a higher conversion value, as they are more specific. They allow you to gradually get more traffic to your site and be found by new and motivated audiences.

Is Amazon a long tail business model?

This is because Amazon doesn’t do long-tail — despite conventional wisdom. Instead, what Amazon offers is a marketplace for long-tail items. In other words, Amazon only focuses on directly selling and fulfilling high-demand products and leaves long-tail merchandise for its independent sellers to fulfill.

What is long tail marketing examples?

For example – most of us have shopped on Amazon, and you will have been recommended products. That’s long tail marketing. You may have been recommended products that are a little tenuous and have no real relation to anything you’ve bought, but, nevertheless it’s an example of Amazon attacking multiple niches.

Which businesses benefit the most from long tail?

Online retailers such as Amazon and Netflix use long-tail marketing more effectively due to supply-side considerations in managing such inventory. A bookstore has a limited shelf space and must use a significant portion of that space to store enough of the most popular items to meet demand.

Why would a company use long-tail words?

Long-tail keywords get less search traffic, but will usually have a higher conversion value, as they are more specific. They allow you to gradually get more traffic to your site and be found by new and motivated audiences.

Why should we use long tail keywords?

Long-tail keywords are much easier to rank than short-tail keywords because of the relatively low competition. They also account for 70% of all web searches, so if you’re not focusing on them in your strategy, you’re missing out on massive opportunities to drive quality traffic.

What is the biggest advantage of long tail keywords?

Is the “long tail” thesis still relevant?

Although that thesis continues to hold sway, another idea has emerged in recent years—presented just as persuasively, and proposing the opposite. The “long tail” theory took shape in an article by Chris Anderson, editor of Wired magazine, which grew into the 2006 book The Long Tail: Why the Future of Business Is Selling Less of More.

What is the long tail theory of sales?

The “long tail” theory took shape in an article by Chris Anderson, editor of Wired magazine, which grew into the 2006 book The Long Tail: Why the Future of Business Is Selling Less of More. The book’s subtitle puts the strategic implications in a nutshell.

Who wrote the long tail?

Chris Anderson is editor-in-chief of Wired Magazine. He wrote The Long Tail which first appeared in Wired in October 2004 and then became a book, published by Hyperion, in 2006. He writes The Long Tail blog.

Should you invest in the long tail?

Should You Invest in the Long Tail? It was a compelling idea: In the digitized world, there’s more money to be made in niche offerings than in blockbusters. The data tell a different story. Summary. Reprint: R0807H The blockbuster strategy is a time-honored approach, particularly in media and entertainment.