Amazon Considering Ads for Alexa+ Conversations
Since 2023, Amazon has positioned Alexa+ as a significant evolution of its voice assistant, making it more conversational and potentially more profitable. Recently, Amazon announced in a press release that its generative AI voice assistant, Alexa+, has been made available to 'millions' of people in early access. Although it’s not yet publicly available, Amazon's CEO is already contemplating the inclusion of ads within Alexa+ conversations.
In an investors call reported by TechCrunch, Andy Jassy, Amazon’s CEO, confirmed Alexa+ is rolling out to select customers in the US, with plans for a broader international rollout later this year. During the call, an analyst queried Amazon executives about how Alexa+ could drive long-term engagement, to which Jassy responded by discussing the potential for monetization through advertising as user interactions with Alexa+ increase.
Voice assistants like Alexa traditionally haven't monetized users, and Amazon hopes to change this with Alexa+. Future plans involve integrating Alexa+ into e-commerce functions such as booking restaurant reservations and ordering groceries. However, with Alexa previously costing Amazon $25 billion over four years, additional profitability avenues are being explored.
Echo Show devices are known to display ads, and music played on Echo speakers may also include advertisements. Advertisers have shown some interest in partnering with Alexa+, but the introduction of ads could deter users from more innovative features of Alexa+. Joel Daly, co-founder of Artemis Ward, highlights the risk of alienating audiences with privacy concerns and unfulfilled potential of voice assistants when introducing ads.
Despite Jassy's suggestion that ads in Alexa+ could help users discover new interests, it appears more geared toward addressing Amazon's financial challenges than enhancing customer experience. Notably, other AI services like Google's AI Overview are also integrating ads.
As Alexa+ remains in the early stages, Amazon is focusing on catching up with competitors and delivering promised features. Currently, Alexa+ is only accessible to Echo Show 8, 15, and 21 owners in the US, but it will eventually be available for free to Amazon Prime subscribers, or at $20/month otherwise.
Additionally, Jassy hinted at the possibility of additional charges for future Alexa+ features. He stated during the call, 'It’s still very early days, but we’re very encouraged by the experience we’re providing, and you can bet we’re gonna be iterating on it constantly.'
