Back in October 2004 when I first read the article “The Long Tail” by Chris Anderson in Wired, I intuitively grokked the concept. I remember how, as teenagers, my friend Heinrich and I had to take the train to Johannesburg after school to search for imported records at Street Records and Moolla’s. Not only were those the days of anti-Apartheid sanctions, which limited availability of imports, but there was an inverted relationship between what we wanted and what the typical music store stocked. According to Anderson’s concept, we were shopping in the Long Tail - the countless collection of niche markets that cannot be catered for in limited physical spaces governed by “the tyranny of the shelf.”
Over the years, finding music became easier. In 1994, in search of an obscure, out-of-print CD, I engaged in my first Internet-enabled trade via Usenet with Dan from San Francisco. By 2005 I had traded music with people in Indonesia, Paraguay, Canada, USA, UK and Australia. In 2007 I have an eMusic account, a last.fm profile, I buy directly from record labels or search Amazon for recommendations. In the Internet age, change is quick.
The original Long Tail article unpacked the phenomenon in a clear and compelling way. On a personal level, I was already participating in various long tails, and understood that bricks-and-mortar retail outlets could not offer the same diversity the Internet could, but being able to apply a framework to the economic model was enlightening. I made some copies of the article for colleagues and talked about the concept, but didn’t follow the evolution of the idea closely. I did not read Anderson’s blog, where he continued to elaborate on and refine the concept of a long tail business model, so when the book appeared late 2006, I was excited to see what had since been added to the concept.
The Long Tail is not a long read - my edition numbers 238 pages in total and I finished the bulk of it on four return flights between Cape Town and Johannesburg. This is in part because it is not a difficult concept to grasp and does not require an encyclopedic definition.
What is it about? In short, traditional retailers are limited by physical space in terms of how much stock can be carried, therefore will only carry those things that have the best chance to sell. If something promises to sell well, less popular items lose their place in order to carry stock of the popular article. With the advent of the Internet and e-tailers that are not bound by the same physical constraints, more items can be offered and more items are bought from the long tail - the area not serviced by bricks-and-mortar retailers. Not many of each item are necessarily sold, but even if only a few, the numbers add up to large volumes overall. The image below illustrates the concept as per the original article:

What Anderson has done in the book is focus more on understanding the Long Tail, its enablers and its consequences for other business models. He identifies three forces that have driven the emergence of the Long Tail by “reducing the cost of reaching niches”:
- Democratising the tools of production (the rise of the personal computer has lowered barriers to entry for aspiring writers/ musicians/ artists/ entrepreneurs to create content);
- Cutting the costs of consumption by democratising distribution (the Internet has meant everyone can be connected to everyone on a global level);
- Connecting supply and demand (search engines, filters, Web 2.0 applications have all contributed to make it easy to find niche content).
Each of the three forces is discussed in detail with examples of specific companies that have harnessed the opportunities, whether it be by selling goods or by organising the search environment. Anderson argues that the last force is crucial to the success of the Long Tail model, as people want choice, as long as it is easy to find the necessary information to assist in decision-making. Six additional themes of the Long Tail interwoven throughout the book are:
- Most markets have far more niche goods than hits;
- The cost of reaching niches is falling dramatically;
- Filters that assist in finding what people want can drive demand down the tail;
- Increased variety and optimised filters flatten the demand curve;
- The number of niche products, when added up, comprise a significant market;
- Once all of this is in place, the true nature of demand (much more diversity) is revealed.
The book is, understandably, written from a US perspective, given the consumer data used and the fact that many of the dominant players in the Long Tail world are US-based, e.g. Amazon, Google and Yahoo. Even if Netflix and TiVo are not available outside the US, the principle is global, though. As Anderson illustrates, long tail markets can consist of many smaller long tail markets, each depending on the type of filter applied. In other words, fans of a specific movie genre, say Korean cinema, might find themselves towards the bottom of the overall movie long tail (if outside Korea), but this group in itself might be split into various long tail distributions depending on variables such as movie genre preferred, culture, geographic location, books read, languages spoken etc. Multiple niche cultures mean consumer segmentation becomes much more tricky, but with good filters, much more accurate.
For example, I have personally made an effort of submitting accurate feedback to Amazon’s recommendation system as to what books and music I own. I noticed, however, that only selecting whether you own an item or not does not make for good recommendations. Only if you take the extra effort to rate each item you own, does the accuracy improve, and eventually becomes uncanny if you consider it is based on what other people have bought and rated.
One of the most interesting chapters in the book is “Niche Culture,” where Anderson asks the question whether unlimited choice and fragmentation of consumer culture into multiple niches is dangerous for society and social stability. He refers to such sceptics as Christine Rosen, who is quoted as follows:
By giving us the illusion of perfect control, these technologies risk making us incapable of ever being surprised. They encourage not the cultivation of taste, but the numbing repetition of fetish. In thrall to our own little technologically constructed worlds, we are, ironically, finding it increasingly difficult to appreciate genuine individuality.
Anderson’s own perspective is different, as illustrated in this quote:
Today we’re not so much fragmenting as we are re-forming along different dimensions. These days our watercoolers are increasingly virtual; there are many different ones; and the people who gather around them are self-selected. Rather than being loosely connected with people thanks to superficial mass-cultural overlaps, we have the ability to be more strongly tied to just as many if not more people with a shared affinity for niche culture.
Of course, it would be surprising for the author of a book celebrating the Long Tail to agree with sceptical points of view, and I tend to agree with Anderson’s view that virtual, self-selected groups break traditional lines of aggregation that could stifle new ways of thinking. Think of it: I emailed a person in Finland today to ask advice about interesting places to visit during an upcoming trip, based only on a knowledge of his musical tastes, as we belong to the same mailing list. I expect he might be more useful than trying to extract my interests from a one-size-fits-all guidebook.
The Long Tail makes good use of graphs where certain concepts require further explanation and is written in an accessible and informal style. It might seem repetitive at times if you have read the 2004 article, as the concept is explained again and sometimes certain elements are repeated in the book. For a new reader, however, it provides the necessary basic background, before expanding on the concept and its potential business applications in the chapter “Beyond Entertainment” - possibly one of the weaker chapters due to the fact that the Long Tail concept applies best in entertainment markets (books, music, movies). The book ends with a delightful little section: “Coda: Tomorrow’s Tail” which briefly sketches the scenario of people in the near future using 3D printing technology to search, find, buy and produce an item of their choice.
For persons interested in consumer marketing, the impact of the Internet on our social and commercial lives, or for those who merely wish to confirm to themselves that they’re not the only ones who love choice - infinite choice - The Long Tail is highly recommended.