After Luring Customers With Low Prices, Amazon Stuffs Fire TVs With Ads
upstart writes:
OEMs are increasingly focused on using TVs as a way to show customers ads:
People who buy a Fire TV from Amazon are probably looking for a cheap and simple way to get an affordable 4K smart TV. When Amazon announced its first self-branded TVs in September 2021, it touted them as being a "great value." But owners of the devices will soon be paying for some of those savings in the form of more prominently displayed advertisements.
[...] Some of the changes targeting advertisers, like connecting display placement ads with specific in-stream video ads, seem harmless enough. Others could jeopardize the TV-watching experience for owners.
For example, Amazon is preparing to make Alexa with generative AI more useful for finding content on Fire TVs. This could help Alexa, which has struggled alongside other tech giants' voice assistants to generate significant revenue. Amazon gets money every time someone interacts with digital content through Alexa.
However, the company is double-dipping on this idea by also tying ads to generative AI on Fire TVs. When users ask Alexa to help them find media with queries such as "play the show with the guy who plays the lawyer in Breaking Bad," they will see ads that are relevant to the search.
[...] Maines told StreamTV Insider that advertisers had been asking for a way to advertise against Fire TV searches. "It just makes sense to expand our existing sponsor tile offering to show advertisements on the search screen with no extra effort or cost for the advertiser," she said.
[...] Amazon Fire TV users will also start seeing banner ads on the device's home screen for things that have nothing to do with entertainment or media. This ad space was previously reserved for advertising media and entertainment, making the ads feel more relevant, at least. Amazon opening the ad space to more types of advertisers is similar to a move Google TV made early this year.
The company seems to be aware of how dominating these types of advertisements can be. Maines emphasized to StreamTV Insider how the native ads are "right at the top of the Fire TV's home screen" and take "up half the screen."
[...] The banner ads will occupy the first slot in the rotating hero area, which Amazon believes is the first thing Fire TV users see. These users may have purchased a Fire TV primarily for streaming content from ad-free subscriptions, but Maines described how Fire TVs can still manage to force ads on these users.
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