I was on the phone last Thursday with a woman who lives in Australia. Near the end of the call, I said, “Ok, we’ll take a look at it and I’ll give you a call either tomorrow or Monday. Oh, I guess it’s already tomorrow there.” “Yes,” she said, “It’s a little after 8am on Friday.” “So I’m talking to someone…from the future?” I asked. She found that funnier than I anticipated, which is always a plus. While that wasn’t technically an interaction with the future in the way we traditionally think about it, I do believe I’ve glimpsed the future of business and advertising, and I gotta say I’m a big fan.
I’ve had an Amazon Kindle for probably about three years now, and I like it quite a bit. I love how quickly I can get almost any book I want, that books are less money than if I bought them new, that these new books don’t take up any room on a shelf, and that I can just bring that one device with me on a trip instead of however many books I may want to read while I’m away. There are really only two things I don’t like about it. First, I can’t share books I like without letting someone borrow the whole thing. Second, with real books, I sometimes flip back several chapters to re-read certain interactions or descriptions that didn’t seem important at the time. I can’t really do that with the Kindle, but it’s definitely a net positive for me.
My version of the Kindle is their first one, and they’ve made a lot of strides since then. When I got an Amazon gift card for my birthday, I thought about maybe getting a new one and letting my lovely wife have my existing one. I looked it up on Amazon and first noticed how much cooler it looks now. That’s not too important, but they just really streamlined the thing and seemed to have learned what people’s favorite and least favorite aspects of the original were. Then I saw something that really caught my eye: the 3G and Wi-Fi one I was looking at cost $189…or you can choose the one with “Special Offers” for $139.
What does that mean? It says: “Special offers and sponsored screensavers display on the Kindle screensaver and on the bottom of the home screen—they don’t interrupt reading.” So just by allowing them to have ads on the screen when I’m not reading, I get to spend $50 less? That sounded like a great deal to me, especially since my screen saver has probably only come on once or twice since I’ve owned my current one. I wanted to learn more though, and the people at Amazon obliged by telling me what some of the past “special offers” have been.
- $10 for $20 Amazon.com Gift Card
- Save up to $500 off Amazon’s already low prices on select HDTVs
- $1 for a Kindle book, choose from thousands of books
- Spend $10 on Kindle books and get a free $10 Amazon.com Gift Card
I’m not buying a new TV anytime soon, but the other three are offers that could really come in handy. In other words, they’re offers that I’d actually want to read. Hell, I’d be fine with male enhancement ads on my screensaver or other typical spam-type offers if my purchase price is significantly lowered. That got me thinking about this whole “special offers” thing and how it might be expanded in the world of consumer products in the future.
The invention of the DVR has made it more difficult for advertisers to get the number of eyeballs to which they’d grown accustomed. That’s resulted in more blatant product placement in TV shows and movies (as mind-blowingly illustrated here and here), but I’m sure they’re still looking for additional ways to grab our attention. The cynical part of me just expected these brands to make deals with companies like Amazon and we’d just have to put up with it. I never expected them to lower the price for the privilege of pitching us their products. After all, movie theaters show commercials before previews. Nobody asked us if we wanted to see them, and they certainly didn’t lower ticket prices. I sadly thought that was the future of advertising, but apparently there’s another option that is as win-win as I can imagine for this type of advertising.
So what’s next? Right now, if Amazon is only pitching Amazon products/deals, it’s all self-contained and they don’t have to worry about the economics of bringing in partners. But I have faith that they’ll figure that out, so let’s look ahead. Let’s say that you’re interested in an HDTV that normally costs $1,200. Would you be willing to let them have ads on the bottom of the channel guide and on the screen saver if it cost less? Lowering it around the same percentage as my Kindle deal, that TV would sell for $888. I can’t imagine it would be that extreme a drop-off, but what if it were $1,000 instead. I don’t know why I wouldn’t do that. It doesn’t interfere with my actual TV watching, and if the offers are even remotely in line with my interests, then it could actually help me save money in the future.
Let’s look farther into this future for a second. The TV costs $2,000, but they have a “special offers” one for $1,200. Here’s the deal with this one: every time you turn on your TV, there’s a 30-second commercial that you can’t fast-forward or skip. Would you take that deal? I’m pretty sure I would, because it would only be a matter of days before I altered my TV-watching routine. I would turn on the set and then go grab a cup of water or take a leak or something before settling down on the couch. It’s more invasive than the Kindle offers for sure, but not unavoidable and a significant enough savings to be attractive.
How do you all feel about this? I like this new wave of advertising quite a bit. I know people have to pay the bills and companies need to get their message out there. I listen to a lot of Adam Carolla’s podcasts, and he starts with a live read for Legal Zoom or GoToMyPC, and I’m fine with that. The podcast is free, so if he wants to talk about his sponsors for less than a minute before getting to the meat of it, it’s an understandable price to pay. (And it apparently works, as I can easily rattle off a few more of his sponsors.) I get that process; it makes sense. But paying less for a device or service if I allow companies to pitch me their products in a fairly unobtrusive manner? That also makes total sense to me, and I hope the “special offers” version of the Kindle does exceedingly well so that others follow suit. I guess we’ll have to wait and see. (Or we could always call Australia and just ask them how it turned out.)