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Kindle swindle (infographic)

As a writer, I like anything that encourages people to read, especially tablet readers such as the Amazon Kindle. But as a marketing person, I think Amazon’s recent decision to offer an ad-subsidized version of the Kindle is a badly flawed idea.┬áHere’s a little graphic explaining why.

Kindle infographic

By offering a cheaper Kindle with “special offers and sponsored screensavers,” Amazon is probably responding to customers who say the hardware is too expensive. (Amazon, which makes money selling e-books, would give Kindles away if it could.)

The problem? Somebody has to buy the ads that offset the $25 discount on the cost of the device. So Amazon has to court advertisers after they’ve effectively given customers a way to avoid advertising by paying a fee. This has been tried before and never with great success.

The “Kindle with Special Offers” model eliminates the audience who marketers most want to reach: People with money to spend. Amazon should let advertisers reach all Kindle users (an action that would probably anger customers), or not bother.

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— By Daryl Lang. Filed under Advertising, Infographics, Technology

One comment

  1. David says:

    If I were Amazon, I would tell advertisers:

    “Kinde with Special Offers” owners have already proven that they respond to special deals and promotions, and may be receptive to the kinds of advertisements which feature coupons and other special offers.

    They have the disposable income to spend on gadgets costing $100+ but were willing to see your ads in exchange for a mere $25 (18%) off. This may be reflective of the point at which they are willing to part with their money in exchange for goods and services. Consider it when offering promotions to Kindle readers.

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