A weblog that catalogs what's shaping the thinking at the DSB Policy Institute.

Wednesday, October 20, 2004

80/20 Rule, Campaign Donations and the Internet

Kevin Laws had a great post on the Venture Blog about how the Internet has challenged the 80/20 rule (the post references Chris Anderson's article in Wired entitled The Long Tail). Kevin cites a few examples (and I quote):
  • Amazon makes most of their profit from the tail - they receive a higher margin because they don't have competition in that area.
  • Ebay does nothing but aggregate all of the tiny, single lot size items that were not being sold at all (or just through local classifieds).
  • Google and Overture are aggregating all of the advertising spending that was not happening because it could not be targeted well enough. Coke doesn't go there in a big way, but Riley's Trick Shop in Worth, IL can target you if you're looking for vampire teeth.

DSBPI wonders when this will be the case for political donations -- when candidates, using the Internet to aggregate the "tail," i.e. the multitude of low-ticket donors -- will surpass the big fish. Perhaps this is already the case.


1 Comments:

Blogger Zach Shrier said...

Not good for Artzeinu Hakedosha.

3:55 PM

 

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