Unique Original Articles » Ads on the Amazon Kindle has people worried

Ads on the Amazon Kindle has people worried

Author: Barbara Coswell

E-readers, tablets and other mobile devices are upending the traditional print industry, which suits Amazon just fine, thanks to the Kindle. Industry studies indicate that the Kindle currently holds a 60 percent share in the e-reader market, a figure that will no doubt improve as the business introduces the $114 Amazon Kindle with Special Offers. Yet there's a catch - those Special Offers are advertisements, a move that has many worried about the shape of the reading experience to come.

It is worth a discount for an ad based kindle?



The first generation Amazon kindle in 2007 cost $399. In order to try and compete with the iPad in the e-reader market, the advertisements were put on it this time in the price deduction. May 3 is when the kindle will start with Special Offers. Target and Best Buy will sell the ad-supported version of the Kindle 3 in stores at that time.

Amazon founder and CEO Jeff Bezos sees the $114 Kindle with Special Offers as a "chicken in every pot" move:

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


There were several responders to an article by the Christian Science Monitor that many may have about the kindle with ads. With 99 cent books, one reader would be okay as long as the ad based e-kindle was free. The price of books becomes a different issue then. The $25 discount isn't enough, according to some readers. Most experts' say it is okay though since the advertisements only come up on the bottom of the home screen and on the screen saver.

"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



Getting to the $99 Kindle for Christmas 2011 is essential, TechCrunch believes. That is what the $114 Amazon Kindle is leading up to with its Special Features. 99 is a magical number. Most marketing would suggest this.

However, new research from New York's Columbia Business School indicates the advantage is more imagined than it is real 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 products. This is because they didn't seem as manipulative to consumers.

Citations



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


Post resource - Amazon to release ad-supported Kindle for $114 by MoneyBlogNewz.
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