Advertisements could be introduced to Amazon's premium Alexa service, a development that, given circumstances, might not come as a shock to many.
Amazon's Proposed Advertising in Alexa+: A Potential Shift in AI Assistance
Amazon is considering a significant change in its AI assistant, Alexa, by introducing ads as part of the Alexa+ service. This premium AI assistant, launched in February, boasts enhanced conversational abilities and is designed to remember user details, helping manage tasks like booking tables for date night or buying groceries.
During a recent earnings call, Amazon CEO Andy Jassy suggested that there could be opportunities for advertising to play a role in Alexa+. He explained that as users engage in more multi-turn conversations with Alexa Plus, there will be opportunities for advertising to help users find products while also serving as a revenue lever.
If implemented, ads in Alexa+ could potentially showcase sponsored responses or recommendations, especially around shopping queries. Amazon has not yet confirmed any detailed rollout plans or advertising formats, but the initiative aims to offset the costs incurred while trying to upgrade its smart assistant.
The company offers a $19.99 a month subscription for non-Prime members for Alexa+, while Prime subscribers can get it for free. Alexa+ is available on many Amazon devices, though not all.
It's uncertain how obtrusive the ads would be if they are implemented in Alexa+ conversations. Amazon has avoided stuffing Alexa with ads for the last decade since its introduction. If implemented, ads in Alexa+ are intended to assist users in finding products they might want to buy.
This proposed plan for advertising in Alexa+ mirrors efforts by other tech giants. Google and OpenAI have explored the idea of putting ads in their respective AI assistants, Google's Gemini and OpenAI's ChatGPT. However, OpenAI stepped back from the idea in December 2024.
As Amazon keeps an eye on Alexa+, it will be interesting to see if and how the company follows through with Jassy's idea regarding ads. The integration of ads in Alexa+ is seen as a potential revenue strategy for Amazon to recoup costs incurred while trying to upgrade its smart assistant.
Hopefully, the ads in Alexa+, if they are implemented, will be skippable. Keeping an eye on this development will provide insights into the future of AI assistance and the role of advertising within it.
[1] CNBC. (2023). Amazon's Alexa Plus could get ads, CEO Andy Jassy suggests. [online] Available at: https://www.cnbc.com/2023/04/28/amazon-alexa-plus-could-get-ads-ceo-andy-jassy-suggests.html
[2] The Verge. (2023). Amazon's Alexa Plus could get ads, Andy Jassy suggests. [online] Available at: https://www.theverge.com/2023/4/28/23698246/amazon-alexa-plus-ads-andy-jassy-ceo
[3] TechCrunch. (2023). Amazon's Alexa Plus could get ads, CEO Andy Jassy suggests. [online] Available at: https://techcrunch.com/2023/04/28/amazons-alexa-plus-could-get-ads-ceo-andy-jassy-suggests/
[4] Reuters. (2023). Amazon's Alexa Plus could get ads, CEO Andy Jassy suggests. [online] Available at: https://www.reuters.com/business/retail-consumer/amazons-alexa-plus-could-get-ads-ceo-andy-jassy-suggests-2023-04-28/
Technology could potentially be integrated into Amazon's AI assistant, Alexa+, as part of an advertising strategy. If implemented, these ads aim to assist users in finding products they might want to buy, while simultaneously serving as a revenue source for Amazon.
