If you’ve been using Alexa-powered devices, your days of being ad-free may soon be over, if rumors are to be believed. Sources are saying that the online retail giant is in talks with several brands, specifically Procter and Gamble and Clorox, so that their products will be promoted through the virtual assistant in the various Echo devices currently available in the market. This is one way for Amazon to monetize Echo and Alexa and add to their already dominant online commerce status, and also to give brands a way to be top of mind for consumers who use Amazon’s devices and services.
The discussions they’re reportedly having with companies right now include paying for their brands to have a higher placement when a user searches for products in their specific category. Voice-shopping platforms are one way for advertisers and brands to be more “visible” to users, as it would work like paid searches do with Google. It’s been shown that users tend to select a top result on voice assistant since going through the other options is a bit harder than when on the web.
If true, this development is actually not that surprising given that Amazon was already hinting that they will eventually launch a paid search ad product for Alexa. It looks like they will be testing different formats and kinds of ads for the Alexa powered devices, which may well include videos. They may also let the advertisers target people who already brought their product before. They may also use the various Alexa skills available and suggest specific products when users are asking about something.
Now whether this will be beneficial or annoying to users remains to be seen. Let’s hope they will be able to find a balance between making advertisers and shoppers happy.
VIA: CNBC
