The Fire TV Stick by Amazon is the most popular way for users to turn their regular TVs into smart ones. But instead of offering a simple and affordable upgrade option for years, Amazon is now relying on noticeable advertisements to recover its costs.
Although there have always been advertisements on Amazon’s Fire TV sticks, they were mainly limited to the front page. But according to Charlotte Maines, the president of Amazon Fire TV’s advertising division, the company is going to launch new ad formats that might affect the user experience in addition to giving businesses more area to advertise.
How these ads work?
As per information from reports, Amazon is planning to implement ads in three formats. The first format will be used by Alexa, which will help users discover the content with the help of generative AI tools. Though it seems like a useful feature, Amazon is planning to integrate ads with every search. For instance, if you are asking Alexa to search for a Robert Downey Jr. movie, it’ll play an ad featuring the movies and shows that feature the actor.
In a similar vein, the user exploring the TV catalog will see the second type of ad format. Finally, the third format, dubbed the “Cadillac of ad spots“, will allow any marketers to place a featured banner at the top of the home screen instead of just streaming services.
What is the reason behind doubling of ads
Amazon’s shift to advertising is clear given the slowdown in the streaming industry, since the company now makes more money from these ads than from membership payments. Worse, these advertisements will not only appear on Amazon Fire TV devices; they will also appear on TVs from third-party suppliers who use the Fire TV platform, like TCL.
But this change can also influence its clientele. Maines stated, recognizing the issue, “If you do not enjoy using your Fire TV, you will stop using it. Then I don’t have an opportunity for advertisers because I don’t have a user.”
I’m a communication enthusiast and junior editor-reporter at Research Snipers, I have completed a degree in Mass Communication but am very enthusiastic about new technology, games, and mobile devices. I have the main interest in Technology and games.