Kindle Fire: Amazon’s sneaky strategy to a major Advertising Platform
If you are like me, you like to purchase technology products that make your life easier. It’s even better when the price point for these are more than accessible. For instance, during the past Prime Day Kindle Fire tablets were going for as low as $49.99. For such a low price you may think Amazon is losing a lot of money with this great piece of hardware. However, when you dig deeper you see that they are not only hooking you to all the Prime services (e-commerce, Video, Music, Photos etc) they are also creating what could become one of the largest advertising platforms we have seen.
The very generous price on these devices comes with a minor annoyance for some and a useful feature to others; Amazon Ads. There is nothing new about showing you ads for stuff you have seen (re-targeting), the key element here is that Amazon has your “buying intent” more than anyone else in the market today. Gone are the days where you used to Google the products you wanted to purchase. Thanks to the convenience of Prime delivery, a seamless ordering experience and unique customer service Amazon has become the default e-commerce platform. According to Recode, s of 2016 a whooping 55% of online shoppers preferred searching for those purchases on Amazon directly. That key action gives Amazon what advertisers consider the most important data point, intent to buy something. Given Amazon’s ability to aggregate purchase intent for the entire family with the ability to try to convince you to finish that transaction you left in the care or that item in your wishlist they can serve you those ads before you even go browse the internet.
The Amazon Ads sit on the home screen of Kindle tablets. That means they are the first and the last thing you see when you use the device. You might thing only a handful of people have purchase these but you are wrong. How wrong? Millions of units wrong.
Amazon has now become a top vendor for tablets period. With this year’s shipments it can easily become a larger advertising network than Twitter. So if you are a brand like Nike who recently closed an agreement to sell direct on Amazon would you spend your advertising money on Google or Facebook or where customers have already specified they want your shoes? Digital advertising will continue to shift and it won’t go to the traditional advertising platforms.