Internet-based Services

Long Tail description.

An 80/20 - Pareto rule fits the distribution of sales in the catalog channel, but in the Internet, this rule needs to be modified to at least a 70/30 rule.

The key supply-side factor is the cost of inventory storage and distribution. If their costs are insignificant, as it happens in internet, it becomes profitable to sell relatively unpopular products.

Some of the most successful Internet businesses have leveraged the Long Tail: eBay, Amazon and iTunes Store.

To attract non-usual customers, entry barriers must be addressed.

Result-based billing (CPC, CPL).
Possibility of short term engagements for special occasions.

The web must ease and strengthen common searches, but allowing the Long-Tail.

Most popular searches are treated individually with vertical portals (Hotels, Restaurants).
Allow small campaigns to be launched at specific dates (Christmas, sales, important events, ...).
Huge inventory hosted to answer every demand from customers. Become a Top of Mind brand for every need.