4 Comments

Summary:

Amazon is reportedly trying to sell ads that would appear on the Kindle Fire’s welcome screen, at prices of at least $600,000 for a two-month campaign. Does that mean a cheaper, ad-supported Kindle Fire is coming soon?

Amazon Kindle Fire games
photo: Amazon

Amazon is trying to sell ads that would appear on the Kindle Fire’s welcome screen, AdAge reports, at prices of at least $600,000 for a two-month campaign. Does that mean a cheaper, ad-supported Kindle Fire is coming soon?

Amazon already sells ad-supported Kindles at a discount. The cheapest Kindle is $79 with ads or $99 without. The Kindle Touch WiFi is $99 with ads or $139 without. The Kindle Touch 3G is $149 with ads or $189 without.

AdAge cites executives who seem uncertain about whether the ads Amazon wants them to buy would be used on a discounted Kindle Fire or just thrown onto the regular version. One unidentified exec says, “You’re already paying a premium for the product and then having that unexpected ad experience makes for a worse consumer experience. There needs to be a value exchange.”

Amazon has likely already thought of that. The company prides itself on customer service above almost anything else, and it probably wouldn’t start including ads on the Kindle Fire without a widely promoted discounted price. The Kindle Fire software is probably already able to support ads (since on the ad-supported Kindle e-readers you can pay $30 to turn the ads off) so Amazon wouldn’t have to launch an entirely new Kindle Fire model to have it be ad-supported.

All the company has to do is decide how much cheaper an ad-supported Kindle Fire will be. The Kindle Fire is $199 now. The company could knock off $30 or go for a bigger discount in preparation for the 2nd-generation Kindle Fire rumored to launch later this year.

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  1. yuryprokashev Friday, May 18, 2012

    The truth about Android is that it is mobile OS aimed to display ads to you.
    It is like cheap TV set with a lot of quality, 80% of which with very poor quality.
    When you buy Android, you sell yourself to Google Ads platform.

    And now Amazon starts to do the same… :(

    Imho, the best for Amazon is cloud and AWS.
    They shouldn’t sell own tablets with negative margins.
    And they shouldn’t go to ads business, where they have nothing to offer to advertisers, except several millions of tablets, controlled by Google Ad-Roid.

    1. > When you buy Android, you sell yourself to Google Ads platform.

      I have owned an Android phone for two years. I have seen some ads on websites I visit via the browser. I have seen ads in some of the apps. I have not seen any ads anywhere else on the Android phone. Also, the ads I have seen on my phone are not only from Google Ads platform, but also from others. Android doesn’t discriminate the ads based on who supplies it. In other words, an Android phone is no different from an iPhone or a Windows phone or any other phone when it comes to display of ads.

      > And they shouldn’t go to ads business, where they have nothing to offer to advertisers, except several millions of tablets, controlled by Google Ad-Roid.

      The version of Android that comes with Kindle is totally adapted and modified by Amazon. It is not controlled by Google in any way or form.

      Sorry, but you have no idea what you are talking about.

      1. yuryprokashev A S Tuesday, May 22, 2012

        Well, sorry for confusion, but I didn’t mean Google use Google Ads platform to deliver ads on mobile. :)

        I also didn’t mean, that you are currently overwhelmed with ads on your Android phone.

        What I meant is that Google business model is ads and Google customers are advertisers.
        What I meant is Google has successfully built the huge subscriber base for their ads.
        What I meant is that developers, who use “free content funded by ads” business model are targeting Android first.
        What I meant is that when advertisers will move their budgets to mobile (which is already happening in US), Google will be the only one who can offer tens of millions of “target audience”.
        And you will be one of them.
        This is the price, user will have to pay for using cheaper Android phones.
        It’s not bad, since you are ok with it. :)

  2. Wow, I wasn’t really thinking about this. Impressive to see someone go to the next level, making almost certain inferences.

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