Amazon Kindle Fire to Begin Selling Ad SpaceMike Krass • May 18, 2012 • 2 minutes to read
The Kindle Fire is Amazon's best selling product
With that in mind, Amazon has decided to sell ads on the device's welcome screen.
Here are some of the details:
- Minimum of $600,000 commitment must be made to get in on a welcome screen ad package
- For $1,000,000, brands would gain access to 'special offers' section inventory and also be included in Amazon's public relations push
- Campaigns would run for 2 month time frames
Initially, agency executives expressed concern over a couple points, including the fact that Amazon cannot guarantee the number of users / devices that these welcome ads would appear on.
Another concern was whether these ads would be available on Kindle Fire's that are currently in users hands or only for the new generation of the Fire that Amazon is beginning to ship.
Which leads to another interesting question ..
How will Amazon differ this experience from Apple's iAds?
If you recall, Apple initially had a entry point of $1 million to run ads on their iAds platform.
This number decreased rapidly (to $500k, then $300k & now $100k) as Apple found it difficult to sell such expensive packages without being able to guarantee performance.
Amazon will need to do a good job of communicating the value of these advertising placements to avoid a similar pricing fire sale, which would begin by defining the number of users that actually see the ads .
For more information on Amazon's new advertising opportunity ...
Check out this Ad Age article that offers some additional details.