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 latest Kindle will start shipping on May 3, and it does more than let you buy a Kindle for just $114—it highlights some of the reasons the Kindle is such a big hit for Amazon, raises some questions about the method of pinning prices for e-book readers and, at the same time, hints at other products that Amazon might see fit to develop and launch, possibly in the near future.
The newer entry-level Kindle places advertisements and special offers on the Kindle screen saver pages instead of the images of famous authors used on earlier standard Kindles. There will also be featured ads near the bottom of the homepage menu screen. According to Amazon, the actual reading experience is not affected. Amazon will make money from advertising revenue and additional sales, which means that consumers can get their hardware at a reduced price. There is something for everyone.
Of course, there will be those who aren’t happy with the notion of ads on their Kindle, but some people seem to dislike the whole concept of eBook 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 all set up and ready to go. 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 announcements will be special offers that will be available directly from the Amazon website.
In some respects, you would have to wonder why Amazon hasn’t done this before. It is the ideal advertising platform for practically any product for sale on the Amazon website.
Aside from the obvious fact that anyone with a Kindle will be in the target demographic for Kindle books and any personal electronic device, Amazon is adept at customizing offers for consumers based on their browsing and purchase history. Targeted ads and the ability to make a purchase with the push of a button make Kindle advertising a very lucrative proposition for Amazon.
It’s an advantage Amazon enjoys in the e-reader market, one that is out of reach for 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 “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 think.
And, as exciting as the chance to win 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 produce its own tablet.”
By closely tying a new tablet to Amazon’s web store, Amazon could set the selling price at a level considerably lower than its competition. It could be another big winner for Amazon.
