Amazon May Add Ads to Alexa+ Conversations
▼ Summary
– Amazon’s Alexa+ is positioned as a major upgrade to make the voice assistant more conversational and profitable, with early access given to millions of users.
– Amazon’s CEO Andy Jassy confirmed Alexa+’s limited US rollout and hinted at a broader international launch later in 2024.
– Jassy suggested ads could be integrated into Alexa+ to boost engagement and revenue through multi-turn conversations.
– Amazon aims to monetize Alexa+ via e-commerce features like grocery ordering and content recommendations, addressing its $25 billion investment in Alexa.
– While advertisers are interested in Alexa+, introducing ads risks user backlash, as seen with existing ad placements on Echo devices.
Amazon is exploring the possibility of integrating advertisements into its next-generation voice assistant, Alexa+, as part of broader efforts to monetize the service. The company recently granted early access to millions of users in the U.S., with plans for a wider international rollout later this year.
During an earnings call, CEO Andy Jassy hinted at potential advertising opportunities within Alexa+ as engagement grows. He suggested that multi-turn conversations could serve as a platform for ads, helping users discover products while generating revenue for Amazon. This move aligns with the company’s push to make Alexa+ more profitable, especially after reports that the voice assistant has cost Amazon billions over the past few years.
Currently, Alexa+ is positioned as a more advanced, conversational AI assistant capable of handling tasks like grocery ordering, restaurant bookings, and personalized content recommendations. However, monetization remains a challenge. While Echo Show devices already display ads and Echo speakers occasionally play them during music streaming, introducing ads into Alexa+’s conversational flow could risk alienating users.
Advertisers have reportedly expressed interest in the platform, but the balance between revenue generation and user experience will be critical. If executed poorly, ads could deter adoption, especially as competitors like Google and Apple continue refining their own voice assistants without heavy reliance on advertising. The success of Alexa+ may hinge on Amazon’s ability to integrate promotions seamlessly without disrupting the natural flow of interactions.
(Source: Ars Technica)
