free marketing in long tail world
DESCRIPTION
Wired Editor Chris Anderson changed marketing with The Long Tail. His follow up book, Free: The future of a radical price, spawned from his Wired article entitled Free: Why $0.00 is the future of business freaked people out even as its predictions are coming true. This deck was created after a productive brainstrom at BarCampRDU in August, 2009.TRANSCRIPT
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Free?
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Free: Profit Killer, Inevitable, Necessary or All of the Above
• Long Tail
• New Altruism
• Citizen Marketer
• Free To You
• Freemium = Few Pay
• Attention = New Money
• Monetizing Twitter
• Cool = Normal
• Ideas = Purple
• Sticky memes and emergence
• Crossing The ChasmCover Art: Shepard FaireyObeyGiant.com
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head
tail
Long Tail by Chris Anderson
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Long Tail
• Chris Anderson’s Long Tail.• 80% anything controlled by 20% of
set.• Also known as Pareto Distribution • Long tail concept applied to many
things:– Long Tail of Search
– Long Tail of Links
– Long Tail of Voters
• Long Tail = Repeatable Fractal– Repeats as set is reduced in size
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Free
• Experiencing New Altruism? – NonZero by Wright– Mind of the Market by
Shermer– Neuroeconomics = new
concept = why we buy
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Citizen Marketer
• Magic 1% contribute.• Contribute for non-monetary
reasons. • People become message.• Hearts and Minds becomes
mission.• Citizen Marketer Book
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Free To You
• Free To You - Paid by Others– Advertising (Google, Facebook,
radio, Free TV)– Sponsorships (niche magazines)
• Free Markets tend to identify BIG winners – Google share 70%+– FREE can destroy markets
• CraigsList = free classifieds• Free Classifieds =
newspapers not profitable• Newspapers close
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Freemium = Few Pay
• Some models are free to most.
• Premium version paid for by some:– Martin LinkedIn– Martin LibraryThing – Flickr
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How Can Twitter Make Money?
• Two battles– Attention
– Money
• Without Attention (customers) money is moot.
• With attention able to monetize– Must be consistent with
community
– Advertising or Sell Company
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Attention is New Money
• Attention economies = different– All basic goods = created– Quality = better than good
enough– Attention = new currency
• Reputation is also money– Reviews of everything
now everywhere
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Cool = New Normal
• iPod,iPhone = instant wins
• Design Matters• Business & Art merge
– Ideo
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Is idea Purple?
• Only create “purple” products.
• Read Purple Cow by Seth Godin.
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Will Idea or Product Stick?
• Made to Stick• Memes transmit like
biology• Emergence
– Bottom up not top down– No centralized control
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Emergence
• Study nature for emergence– Ants– Bees– Birds
• Books by E. O Wilson
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Product Development Lifecycle
• Product lifecycle ties to Long Tail• Top of bell curve = Head• Either side = Tail
Crossing Chasm
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Long Tail
Crossing Chasm
Product Development Lifecycle