The “Long Tail Theory” should be familiar to anyone involved in Ecommerce and online marketing. It was first introduced in 2004 by “Wired” editor Chris Anderson. Briefly, the theory posits that with the arrival and increasing popularity of online marketing and large Ecommerce sites like Amazon and Netflix, and the vast number of smaller Ecommerce sites, companies can achieve success by selling small amounts of products for customers seeking very specific items. The long tail benefits consumers because it gives them a wider range of choices–they can find and purchase exactly what they want.
The Tail Theory has become widely discussed in online marketing circles. It has even recently spawned a bestselling book by Anderson, one that’s probably prominently displayed in the business section of your local bookstore.
But a recent Harvard Business Review online marketing article by Harvard associate business professor Anita Elberse suggests that the long tail may not be as popular as initially believed. Just because more products are available doesn’t mean consumers will buy them. While a small number of consumers will hunt online for more obscure products, most are content to buy the most popular, or best selling version of a desired product.
Anderson has defended his thesis, stating that he and Elberse define the “tail,” the desired product, differently. And it looks like the long tail debate isn’t likely to be resolved among the online marketing crowd anytime soon. But one can be fairly confident stating that the long tail theory can be an online marketing tool that benefits local business with local searches. With the proliferation of online marketing and local search engines like YellowBot, CitySearch and Open List, searching Google for products and services in a specific area will tend to show more and more of these sites.
Local businesses can get lots of hits by utilizing these local sites. But it can be time consuming to make sure that your business’s Web site is optimized for the most important online marketing and search sites. That’s where search optimization can help. Good SEO means that people performing local searches find your business. And that’s one of the most important factors for Ecommerce success.
