Long Tail Thoughts

Just finished Chris Anderson’s book The Long Tail, and had a few thoughts. The “Long Tail” concept, of course, is defined thusly:

“What happens when everything in the world becomes available to everyone? When the combined value of all the millions of items that may sell only a few copies equals or exceeds the value of the few items that sell millions each? When a bunch of kids with no profit motive can record a song or make a video and get the same electronic distribution for it as the most powerful corporation?

The Long Tail is really about the economics of abundance, and entirely new model for business that is just starting to show its power as unlimited selection reveals new truths about that consumers want and how they want to get it.”

Overall a good, quick, solid read. However, while reading through the book, it triggered two primary questions for me:

  • If what I am marketing is in a niche in the tail, how do prospective customers find me?
  • Being in a niche is great and all, but it would be nice to be closer to the head of the curve…how do I move my niche to the left?

Some thoughts on those two questions in the following posts.

Related:
Getting found in the Long Tail: Direct
Getting found in the Long Tail: Recommendations
Moving Your Niche

Up And Atoms

SSPX0035 SSPX0034

Time for a brief diversion into the tangible world. When one spends most of one’s time being virtual, taking a few moments out every now and then to do something with wood and metal and paint…you know, stuff…is needed to recenter one’s perspective.

On that note, today was the maiden voyage of our current real-world-stuff construction project, a tiny little “teardrop” camper-trailer. After working on it in the off hours for the last couple of weekends and in the evenings, it’s getting close to completion. But, even in its current shape, the Department of Motor Vehicles has deemed it road-worthy, so here it is!

A few more things to do (add a couple of round “porthole” windows, get the back deck locks in place, one more coat of red paint on the curve, etc.), but we’re getting pretty close.

We now return to our regularly scheduled programming in the world of ones and zeros.

Flock U

Nellie Lide, on communities, social networks and marketing: “I think brands will have to go beyond a conversation – though that’s a good start – they have to be willing to develop and maintain a relationship/friendship with their customers over the long-term. And I think companies are looking at these sites all wrong. Advertisers, marketers, product-makers are trying to figure out how to exploit and use all the people on these sites – when they should be studying what these folks are doing and try to figure out how they can help these social sites be better for their users. Not more cluttered with their ads. If your product and brand don’t really fit in – stay out. Know your customer and respect your customer – that’s it.”

I Want To Have A Say

Dawn Rivers Baker: “Here’s the bottom line: this is my computer. I’m not going to use anybody’s software that take control of my machine away from me. If you, Mr. Software Producer, can’t write software without taking over my computer, then I’ll have to go find somebody who is a better programmer than you. I want to have a say. If you aren’t going to give me a say, I’ll go find somebody who will.”

Right on.

Silent Bob Speaks

Jsbstash_1909_431813As anyone who’s ever read my bio knows, the movies of Kevin Smith factor strongly into my pop culture experience. Clerks, Chasing Amy, Dogma (yes, even Mallrats) sit proudly in my “top 10” movie list. I find them funny, thoughtful, insightful, and refreshingly willing to challenge the more taboo societal conventions. And Smith is a brilliant writer.

Smith’s most recent movie, Clerks 2, opened on July 21, 2006, in theatres in the U.S. He videoblogged the entire making of the film (“come watch the train wreck!”), and even rolled the names of 10,000 MySpace “friends” of the film during its theatrical credits.

He so totally gets it.

Smith also knows that he appeals to a limited demographic. So, he built the business plan for the film around that understanding. Smith (on July 23rd, near the end of the film’s opening weekend):

“Reuters writes “Kevin Smith’s ‘Clerks II’ was No. 6 with $9.6 million, broadly in line with expectations.”
I’m not gonna try to spin it for you: we’d have liked to have opened better, naturally.

And yet, I’m happy.

Let’s get the business stuff out of the way first…

Once again, in what’s been termed by some box office analysts as the “Star Trek”-Effect, we saw good Friday numbers dip on Saturday. Essentially, the hardest of hardcore fans show up in full-force on opening day, inflating the returns slightly, leaving Saturday to drop rather than enjoy the standard jump most flicks enjoy on the same day. So while it would’ve been nice to have done our best opening weekend ever with “Clerks II” (that 11 million “Strike Back” bar didn’t seem all that high to reach on Friday night), alas, it’s number six for us.

I can’t find anything to complain about; I mean, we nearly doubled our budget in the opening weekend. And while there were marketing costs (prints and advertising) beyond the negative cost ($5mil production budget) , they were pretty modest (indeed, we spent far less opening “Clerks II” than we did to open “Strike Back”). The flick should manage to get to $20 – $25mil theatrically, and eke out a minor theatrical profit, leaving all the DVD loot as total windfall.

In essence, we took the “Strike Back” paradigm, plugged in different, lower numbers, and are seeing pretty much the same results. But since “Strike Back” was a pretty profitable endeavor when all was said and done, “Clerks II” will be even moreso (a twenty million dollar budget vs. the five million dollar budget). Financially, it’ll be a winner for all involved.”

He also nailed the marketing of the film. Smith again:

“We knew we were going after a niche audience and spent accordingly.

That’s why we only spent five million bucks making the flick in the first place.

That’s why we spent 45 weeks throwing up making-of video blogs over at www.clerks2.com.

That’s why I did a fifteen city tour promoting the flick to every local news outlet I could hit.

That’s why Jeff Anderson and Brian O’Halloran did the same, in fifteen other cities.

That’s why Rosario Dawson and I did couch duty, separately, on Leno, Conan, Kimmel, Ferguson, and Regis (yes, Regis).

We maximized what little we had to promote the flick with good ol’ fashioned grass roots marketing: because our marketing budget was well below average.”

Back on July 23, per the quote above, Smith estimated that “the flick should manage to get to $20 – $25mil theatrically.” As of yesterday, Clerks II had grossed 22.3 million in box office revenues. Again, he nailed it.

The moral I see?

  • Know what game you’re playing, cold. Don’t self-delude.
  • Know your audience and customers. Build a business that serves them.
  • And don’t ever, ever pretend to be something you’re not.

A Trend? I Hope So.

My cynicism in some aspects of humanity has been beaten back this morning, just a little.

  • JP is writing about trust and relationships, and how they are affected, enabled, or hindered by technology.
  • Stowe writes perhaps his most thought-full post ever, and states, beautifully, “Most of the time we tech bloggers never take our eyes off the tech in the foreground to even acknowledge the world behind, forming the background. Today, it’s the context that is dominating my thoughts: the sputtering economy, the world tearing its own throat like a rabid and double-jointed carnivore, the deaths, the bombs, the inexorable heat, the rising costs… and meanwhile a bright and shiny tech culture skips above the surface of that boiling sea of trouble, like a child’s balloon rising above a troubled city: a beacon or a toy?”

  • Grace answers Victoria’s Craigslist ad, and the two jointly create a resource that helped hundreds, maybe thousands, of individuals affected by Hurricane Katrina.

  • Euen notes “Who knows, maybe out of all of these conversations and exchange of ideas that blogging has enabled we will some day tackle the really big stuff. The stuff that matters. How we run ourselves and conduct ourselves in the world. It may not be any one particular group and certainly unlikely to be some sort of “killer app.” but I am more and more confident that the connected worldview that we are fostering is different from what we have experienced before and certainly affords us a new means of expressing ourselves and making our views known. Maybe we will be able to regain some of the ground lost to those who see life as a fight which has to be won and polarise everything into black and white maybe the middle has something to add after all.”

Have a good Sunday, everyone.

And Offline, Too

Dhiraj Gupta: “Customers want to be heard, acknowledged and rewarded. They know what they want, they want to do it their own way, and that too, without talking to the customer support hotline. This rebuilding of Trust is the key to building a successful business, online.”