Amazon Announces Sponsored Messages Bringing Ads To Alexa

Posted: May 16 2017, 6:08am CDT | by , in Technology News


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Amazon Announces Sponsored Messages Bringing Ads to Alexa

Sponsored Messages will be in third party skills only... for now

Today manufacturers are often not content to just sell you a product and make money on that sale. They tend to want to keep the money rolling in by pushing ads on whatever device you purchased as well. This is exactly what Amazon is doing with the announcement of Sponsored messages for Alexa.

With Sponsored Messages, developers of third party Alexa skills will be able to incorporate six to 15 second ads into their offerings. Money earned in these ads will go directly to the advertisers with Amazon not getting a cut. The downside here is that you can virtually guarantee that if the ads are even tepidly received by Amazon Echo users, Amazon will be wrapping ads into its own skills in short order.

Its unclear exactly how these ads would work. Presumably if the skills are for something like a shopping list or calendar, at some point you will be forced to listen to them to keep using the skill. This could be a big boost for Amazon's bottom line as ad revenue would grow right along with the adoption of the Echo devices. According to Business Insider 9 million US households have one Echo speaker today and 16.5 million will have one by 2022.

Sponsored Messages also as the potential to show video ads on the new Echo show with its 7-inch touchscreen. The expectation is that ads will detract from the user experience, but that detraction isn't expected to hurt Amazon's standing in the marketplace. The reason for that lack of impact on market standing is because Amazon's main competitor is Google and the Google Home line of devices that will also have ads.

If both Amazon Echo and Google Home speakers are showing ads, this is where the rumored Siri Speaker might gain ground. Apple won't likely include ads on its Siri Speaker seeing the device as another place to run apps and sell music. That could give Apple a leg up in the segment, even if its product will certainly cost more than the competition.

This story may contain affiliate links.


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<a href="/latest_stories/all/all/3" rel="author">Shane McGlaun</a>
Tech and Car expert Shane McGlaun (Google) reports about what's new in these two sectors. His extensive experience in testing cars, computer hardware and consumer electronics enable him to effectively qualify new products and trends. If you want us review your product, please contact Shane.
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