Amazon is preparing to start showing ads on its Echo Show smart display, according to a recent report from Bloomberg. The ads will include promotions for apps available on the smart devices, as well as various Alexa skills.
According to the report, the company has started reaching out to app developers to persuade them to advertise their apps on Echo Show devices. While it could technically provide another revenue stream for Amazon, increased ad revenue isn’t necessarily the main goal here.
Amazon has had a hard time keeping users interested in the device. Many customers lose interest in their Echos and simply resort to using their smartphones for the same tasks.
As a result, developers tend to focus on developing their apps for smartphones, which they know people will use. And Amazon’s Echo devices have become an afterthought for many developers.
Amazon wants more apps on Echo devices
That’s where Amazon’s new ad plan comes in. Pop-up ads on the Echo Show device will have a couple of purposes. First, the ads will show customers what kind of apps are available on the device, as well as some of Alexa’s lesser-known capabilities.
But maybe, more importantly, it will give developers the opportunity to reach more users. Even if someone only uses their Echo Show to play music or call their friends, they’ll see these pop-up ads occasionally.
That lets developers advertise their product and gives users more information on what’s capable on Echo devices.
Additionally, Amazon is offering a better revenue split for app developers on Echo devices. Developers who make less than $1 million will share 20 percent of their revenue with Amazon. That’s compared to 30 percent for other developers.
Essentially, Amazon is concerned that there aren’t enough apps available on its Echo devices to keep users interested in the long run. It hopes that giving developers a new platform to advertise their products will entice them to develop apps for Echo devices.
But it will be interesting to see how this all plays out in the long run. Most of us are pretty used to using apps on our smartphones. And I don’t see many users switching to their Echo devices instead.
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