Initial reports Amazon plans to push more ads on Alexa have recently been dismissed with a spokesperson from Amazon telling Android Headlines, “there are no plans to add advertising to Alexa.” Although it may just be a matter of time before it or another competing voice assistant speaks well of the highest bidding brands.
Original reports claimed Amazon was in talks with several companies including Clorox and Procter & Gamble about allowing them to promote products on some of the best-selling Echo devices, which are powered by the Alexa voice assistant. These reports were with anonymous sources only described by CNBC as, “several people familiar with the matter.”
The move would make sense, with the existing Echo featuring little-to-no advertising, and with the rise in popularity of the in home speakers, consumer companies are want to get their foot in your door to influence search results for voice-powered shopping, with search placement on Alexa being the main focus of control. Amazon could conceivably charge a handsome amount for these companies as the voice assistant shopping experience would make it harder to ignore the first search results like a web browser where you can scroll down or ignore the top of the search page.
Ad revenue could justify a lower price point for the speakers. Amazon continues to dominate the smart speaker market, despite the company slashing the prices of their Echo devices over the holiday. Amazon declined to comment about their post-holiday financial situation to Reuters, although the Echo Dot was noted as the best online seller over the holiday rush.