Hans Henrik Heming,

16 May 2006



Alex

Posted in Business Strategy

Tom at MediaA introduced me to this concept a few days ago. The Long Tail is defined as a statistical model where:

” a high-frequency or high-amplitude population is followed by a low-frequency or low-amplitude population which gradually “tails off”. In many cases the infrequent or low-amplitude events can cumulatively outnumber or outweigh the initial portion of the graph, such that in aggregate they comprise the majority.”

Coined in 2004 by Chris Anderson,the editor-in-chief of Wired, who is writing a book on the subject, it’s interesting to hear about how this model applies to internet-based businesses such as Amazon and Google and how they compare to brick-and-mortar businesses.

He compares traditional big businesses like Hollywood who are really interested in just the first part of the curve in a way, ie. the first week of ticket sales and performance as a way to judge a film’s performance vs. online businesses who might be more interested in the long run, how their business will grow from a short peak and gain momentum and interest from users through recommendations, word-of-mouth, etc. ultimately leading to a longer lifespan and growth through time.

Listen to this talk given by Chris, its definitely worth it.

Leave a Reply