Question

How is Google’s advertising model considered an example of tapping into the Long Tail Economy?

Answer 1

The economy is focusing on millions of small niche markets rather than few mass markets. With the advancement of technology, mainly the internet and sophisticated search engines, it is now easy for consumers to search and buy niche products. Whereas traditional retail stores can only stock items that mass markets find appealing because shelf space is limited an expensive, these online retailers, such as Amazon, Snapdeal, Big Basket, etc. can stock virtually almost everything.

Now, Google earns most of its profit from internet advertising. Anderson referred to Google as "long tail advertisers" who believe that niche comapanies need more advertising than the big mainstream business houses. For optimizing the search engine Google focus on lots of pages that serve niche markets rather than making one page popular. Hence, Google’s advertising model considered an example of tapping into the Long Tail Economy