All public companies are looking for new revenue streams and Amazon Inc. is no different. Today, we have learnt that the online retailer believes that the latest revenue stream for the company will come by way of ad space that it wants to sell on the Kindle Fire welcome page.
According to sources, ad space on this page is currently being shopped around to a number of different companies with the asking price being $600,000 for a two month ad. In the past, we’ve seen Amazon bring ads to their tablet line-up in the form of screensaver advertising on a lower cost Kindle device. The difference was that Amazon was upfront with this device as the product was priced $25 less then the ad-free model, so customers knew that they could expect ads with the lower priced device.
There are no details at this time as to when Amazon will introduce new ads on the welcome screen, but all indications are that this could coincide with the release of the new Kindle which is expected in about two months. It remains to be seen just how receptive both advertisers and the paying public will be to this idea. Many advertisers have already expressed some concerns over this idea because customers are paying full price for a premium product and don’t want ads. As such, the addition of ads will negatively impact the user experience.
