Unique Original Articles » Advertisement supported Kindle to ship on May 3

Advertisement supported Kindle to ship on May 3

Author: Barbara Coswell

The traditional writing industry has lost ground to e-readers, tablets and other mobile devices, and Amazon is sitting fairly with its Kindle platform. Currently, Amazon has a 60 percent market share in the e-reader market, a hold that should increase as the $114 Kindle with Special Offers hits the market next month. What's the catch? The new Amazon Kindle, while no different from the Kindle 3 in most respects, will be ad-supported. Article source - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.

Putting advertisements on a kindle; pay less



About $399 was spent in 2007 on the first Amazon kindle. The price has gone down a lot since then. To be able to try and compete with the iPad in the e-reader market, the ads were put on it this time in the price deduction. The Kindle with Special Offers is slated to ship May 3. The Kindle 3 will be put in stores then. Both Best Buy and Target will carry it.

It is "chicken in every pot" decision made with the $114 kindle with Special Offers according to Jeff Bezos, the Amazon CEO and founder:

"We're working hard to make sure that anyone who wants a Kindle can afford one," he said via a statement.


There were many responders to an article by the Christian Science Monitor that several might have about the kindle with advertisements. The price of books was brought up by one reader that states kindles for free with advertisements would be okay with $0.99 books. Several experts say it is good that Amazon only has advertisements on the bottom of the home screen and on Kindle's screensaver, although some complain a $25 discount is not enough.

"It's very important that we didn't interfere with the reading experience," Kindle director Jay Marine told the Associated Press.


The price is needed



The guess TechCrunch has is that the $114 Amazon Kindle is just leading up to the Christmas 2011 $99 Kindle. Traditional marketing psychology suggests the ".99" price point is a magic number.

The Columbia Business School in New York did research on this though. It showed this might not be the case anymore. The "dollar-minus" approach (down to 99 cents, for instance) was really less effective than "dollar-plus" price points (like $4.01), according to the Columbia study. There was a 3 percent increase in sales of dollar plus method goods. This is because they did not seem as manipulative to consumers.

Articles cited



Christian Science Monitor


csmonitor.com/Books/chapter-and-verse/2011/0413/Will-readers-accept-ads-in-exchange-for-a-cheaper-Kindle



Columbia Business School


gsb.columbia.edu/ideasatwork/researchbriefs/7314376?&top.region=main



Knowing and Making


knowingandmaking.com/2011/04/new-research-99-no-longer-optimal-for.html



TechCrunch


techcrunch.com/2011/04/11/amazon-kindle-99/



Kindle sales tripled after last price drop


youtu.be/PaAFm_fZQ2A


Resource for this article - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
Article Source: JS2 Article Marketing


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