I bought my copy of Chris Anderson’s, “The Long Tail” on Amazon.com. If you notice at the bottom of the page displaying Anderson’s book, “The Long Tail” you will also find recommendations for “Groundswell” and “Here Comes Everybody.” Amazon.com has revolutionized the book industry and is a prime example of a long tail company.
Amazon is just one example of the long tail and their inventory goes far beyond the recommendations mentioned. In fact, Amazon’s inventory dwarfs that of any ordinary bricks and motor book store. According to Anderson’s theory, infinite shelf space is key in applying long tail principles to business. This is just one example of the long tail in action and proof that Anderson is on to something with his notion that the traditional 80/20 power distribution law is a thing of the past. As Anderson puts it, our culture is a massive popularity contest and the world is built around blockbusters. He explains that the blockbuster culture is starting to fade to a culture driven by smaller niches vice large-scale hits.
Online recommendations are changing the way people shop and without shelf space constraints, there are no limitations to what is available for consumption. Amazon.com’s recommendations for books associated with “The Long Tail” were incredibly insightful as Li and Bernoff set the stage in “Groundswell,” laying out the foundation or basic enabler for Anderson’s theory. Likewise, Shirky explores the human element of the equation as he explains the new dynamics of group interaction and behavior in today’s world. Each book serves as a layer of knowledge that is necessary to truly understand how Web 2.0 is changing our culture and how the long tail works.
Anderson touches on some common themes from the two previous readings as he explains the three forces of the long tail: (1) democratize production, (2) democratize distribution, and (3) connect supply and demand. The very exercise of reading his book and writing this blog employed all three forces. Using my home desktop computer to blog, purchasing the book on eBay, and checking the subsequent recommendations, and eventually posting my blog entry are all examples of democratizing as Anderson explains.
Once you understand the long tail theory you quickly realize that long tail businesses are everywhere. Amazon, iTunes and Netflix are just a few examples that Anderson explains in detail. As he puts it, we live in a “seamless digital marketplace” where content can move from the very bottom of unviewed material to the top, with changes in public interest. The legacy logistics of the bricks and mortar model don’t need to catch-up because the inventory already exists in a virtual endless fashion.
With all of these forces of democratization the keys to the market are in the hands of the consumer. This leads to an overwhelming amount of data on the Web. In Anderson’s words, “You Tube is full of crap!” One of my favorite case studies in the book explores some of this (data) crap in explaining how an online video loaded to You Tube was a catalyst to rejuvenating dwindling Saturday Night Live ratings.
Anderson explains how a December 2005 Lonely Island crew “white-boy” rap video spoofing on the Chronicles of Narnia become an online sensation and made the once popular show relevant again with a young generation of viewers.
This content managed to resonate with a new audience – a younger one that grew up online. Anderson contends that the days of everyone watching the same show and recounting the previous night’s episode over the water cooler are gone. The internet has democratized distribution and changed the architecture of participation putting the consumer in control.
Anderson does a remarkable job explaining his theory which makes this book an incredible read. To summarize at the risk of oversimplifying, Anderson drives home the point that niches add up. These narrowly targeted goods may seem like a relatively small portion of the market, but the sum can be significant, particularly on the scale of iTunes or Amazon sales.
For the Coast Guard the long tail may serve as a way to strengthen the workforce. With limited funds for requirement and a need to grow a diverse workforce with talented recruits, the long tail may serve as a way to reach niche markets. For example, the Coast Guard could target professional Hispanic engineers at a specific university through the use of social media. Recruiting commands could also use online videos to reach specific audiences. While, the organization must be careful so that their content is not viewed as spam, there remains an incredible opportunity to capitalize on this new distribution law to sell less of more. The Coast Guard is small and in many ways offers niche services to our nation. As such, the Coast Guard must be a long tail organization.
