The latest version of Amazon’s phenomenally successful Kindle reader, the “Kindle with Special Offers,” allows customers to get $25 off the price of a standard Wi-Fi-only Kindle. The newest Kindle will start shipping May 3rd and does more than let you buy a Kindle for just $114 – highlights some of the reasons why the Kindle is such a hit for Amazon, raises some questions about the price fixing method prices e-book readers while hinting at other products that Amazon might see fit to develop and launch, possibly in the near future.
The latest entry-level Kindle places advertisements and special offers on Kindle screensaver pages instead of the images of famous authors used on previous standard Kindles. There will also be featured ads near the bottom of the home page menu screen. According to Amazon, the actual reading experience is not affected. Amazon will make money from ad revenue and additional sales, which means consumers can get their hardware at a reduced price. There is something for everyone.
Of course, there will be those who are unhappy with the notion of ads on their Kindle, but some people seem to dislike the whole concept of e-book readers more or less as a matter of principle. It’s a matter of personal preference when all is said and done. In any case, anyone uncomfortable with ads on the Kindle can pay a little more and get the standard, ad-free model.
There are a number of companies with Kindle ad campaigns set up and ready to launch. Chase, Procter and Gamble, Visa and General Motors are a selection of companies that want to see ads for their products on the Kindle. However, it seems reasonable to assume that a large percentage of the ads will be special offers that will be available directly from Amazon’s website.
In some respects, you’d have to wonder why Amazon hasn’t done this sooner. It is the ideal advertising platform for practically any product for sale on the Amazon website.
Aside from the obvious fact that anyone who owns a Kindle will be in the target demographic for Kindle books and any personal electronic device, Amazon is adept at personalizing offers for consumers based on their browsing and purchasing history. Targeted ads and the ability to make a purchase with the push of a button make advertising on the Kindle a very lucrative proposition for Amazon.
It’s an advantage that Amazon enjoys in the e-book reader market, and one that is beyond the reach of many of its competitors. However, it’s debatable whether a discount of just $25 is an accurate reflection of the true value of Kindle advertising for Amazon. Some industry watchers are already speculating that we could very well see a free Kindle reader in the near future. If the “Kindle with Special Offers” turns out to be a hit, then a free Kindle, possibly with some strings attached, like a minimum number of Kindle book purchases per year, may not only be a possibility, but could be here faster than ever. you believe
And as exciting as the opportunity to get a free Kindle reader may be, the success of Amazon’s sponsorship efforts has far-reaching implications. The possibility of Amazon launching its own tablet has moved beyond the realm of speculation and rumor to an event that seems to have an air of inevitability about it. ZDNet’s James Kendrick is on record as saying that “Amazon wouldn’t make its own tablet.”
By closely tying a new tablet to Amazon’s web store, Amazon could set the selling price considerably lower than its competition. It could be another big winner for Amazon.