Kindle Adopt Advertising to Drop Price

I have nothing but admiration for Amazon and their management of the Kindle. Today saw the entry level price fall to a mouthwatering $114. The Catch: Customers to view ads in exchange for getting the lower price.

The latest Kindle called Kindle With Special Offers, costs $25 less than the current lowest-priced model and it will be available May 3 at Best Buy in addition to

Under the stewardship of CEO Jeff Bezos, Kindle has become Amazon’s most popular product (and the one with most 5 star ratings) and should bring in $5.42 billion in revenue in 2011, according to Caris & Co.

Who is taking up the offer to advertise on Kindle?

General Motors will be promoting the Buick, P&G will push Olay skin products and Visa want to tempt you too.  Amazon will put its own promotions on the Kindle offering readers a $10 gift card for $20 worth of merchandise on its site.

Discrete Screen-Saver Ads

Ads will appear as a screen saver when the Kindle is idle. They will also be seen as a banner on the bottom of the screen on a user’s home page.

Amazon are trying to position these ads as being more like Groupon offers hence the name Kindle With Special Offers.

For me, brought up on strict diet of Ad free BBC and more recently Pandora Radio I would willingly pay not to have the advertising interupt me when I am reading.

About adriangstewart

Senior executive with expert knowledge of all aspects of strategic marketing and a track record of creating sustainable competitive advantage. International management and leadership experience in both B2B and B2C organizations. Specialties:Strategic marketing management including; new product development, product life cycle management, business relationship management, market segmentation, marketing information systems, e-commerce and social media marketing.
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