Why Amazon Smart Displays Are Sparking Regret: The Hidden Cost of Constant Ads

Advertising plays a small but crucial role in how customers discover new content and products. If users aren’t interested in a suggestion, they have the option to swipe or provide feedback easily.

Amazon hasn’t said much about whether it has increased ads on Echo Show devices.

Alexa Embraces Ads

Amazon’s devices don’t generate much profit, so it’s not surprising that they are turning to ads for revenue. The company’s advertising business is booming, making over $15 billion in recent years—a 22% year-over-year increase.

To boost its advertising efforts, Amazon expanded its ads program for Alexa devices in 2023. In July, they rolled out a new feature allowing ads to appear on the Echo Show’s home screen. There’s even talk of integrating ads into Alexa conversations.

According to Amazon, the way ads are displayed changes based on how far someone is from the device. When users are more than four feet away, ads appear full-screen alongside content like weather updates and recipes. If they’re closer—within four feet—ads show up as the first card on the home screen.

Panos Panay, who oversees Amazon’s Devices & Services, admitted that some ads feel random. An Amazon spokesperson mentioned that they will keep refining the ad experience based on user feedback.

As new devices hit the market, Alexa’s future may depend on how much people are willing to tolerate ads alongside their gadgets. The spotlight is on user satisfaction now more than ever.

Interestingly, recent surveys indicate a growing discomfort with ads in smart devices. According to a Pew Research report, over 55% of users express concerns about excessive advertising in their home technology. Striking a balance between revenue and user experience will be crucial for companies like Amazon.

For more on Amazon’s advertising trends, check here.

Source link