Beijing January 3 morning news, Amazon Alexa voice assist function has been very popular, and now, the e-commerce giant is also ready to make this service an important advertising business.
People familiar with the matter said Amazon has held talks with a company that is going to get them to promote their products on Echo devices with Alexa assistant. Consumers, including Procter & Gamble and Coke, are involved in the negotiations.
Some of the negotiations include whether businesses can afford to pay for more prominent advertising dollars: for example, when users search for shampoo on Echo, paid-for brands get higher rankings, similar in effect to Google's paid search ads.
Amazon is currently running very few ads on Echo, but the move may have significant implications for consumer businesses, all of whom want to enhance their influence over the voice shopping experience.
With Alexa's growing influence, many brands are worried about being completely thrown away by the voice shopping platform. Advertisers and brands pay particular attention to the search rankings on Alexa because consumers are more likely to choose the voice assistant to give the first search result than web search, after all, the voice is not as easy to drag up and down as the webpage.
Amazon has previously revealed that they will launch paid search ads on Alexa, but informed sources said the latest negotiations show that the e-commerce giant as early as this year plans to flex its muscles in the advertising market.
CNBC reported last week that Amazon is testing many types of ads, including video ads, by 2018.
Although Amazon dominated the e-commerce sector, eMarketer, a market research firm, ranked its online ad business only fifth in the United States. eMarketer said that Amazon's advertising sales are currently mainly sponsored ads on the site, an increase of 42% by 2018 to 2.4 billion U.S. dollars, but still lags far behind Google's 40.1 billion U.S. dollars and Facebook's 21.6 billion U.S. dollars.
Although Alexa's current advertising is limited, Amazon plans to offer businesses a variety of promotional programs, including some that have already begun testing.
One of the experiments is to allow businesses to target users based on past shopping behavior. For example, Alexa may suggest that a consumer who had bought a high Leptin element consider the company's disinfectant wipes. Amazon also plans to tap the advertising potential of Alexa Technologies: When users turn to Echo for help cleaning up spilled dirt, it may recommend that users buy a branded product.
Alexa already has a number of sponsored ads that have no associated user shopping history. For example, if a consumer has Alexa buy a toothpaste, it responds by saying: "I can find a brand, like Colgate. what do you think? & rdquo;
As Amazon explores Alexa's potential deeper and deeper, the company may well combine this popular device with its massive subscriber data to create more targeted advertising opportunities for brand advertisers.
Colgate has yet to comment. High Leh refused to respond.
Amazon spokesman said the company is not ready to increase advertising on Alexa.