Saturday, March 19, 2005

The long tail of software. Millions of Markets of Dozens.

Here you go - independent data on the Long Tail.

Bnoopy: The long tail of software. Millions of Markets of Dozens.


You know the real reason Excite went out of business? We couldn’t figure out how to make money from 97% of our traffic. We couldn’t figure out how to make money from the long tail – from those queries asked only once a day.

Overture figured it out, Google perfected it and we all know what happened from there. Those guys figured out something revolutionary -- the long tail of search was a advertising marketplace. But it wasn’t a traditional advertising marketplace like television, where a handful of large advertisers reached out to a handful of very large markets. It was a special kind of marketplace where small advertisers could reach small markets efficiently. It was and is a revolution to the traditional economics of advertising (where the cost of producing and distributing advertising requires large markets to justify the expenditure).

Search is a long tail business and that is the source of its power and profit.
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