It had to come sooner or later. Amazon clearly see the future of ebooks and their Kindle devices as yet another lucrative advertising income stream. In this article ‘Amazon Pushes Hard On Ad Supported Kindle Line‘, there can be no doubt as to where Amazon is heading.
For some time I have been sceptical, and from time to time quite grumpy, about Amazon’s $0.99 to $2.99 pricing gap. As a publisher, it makes pricing an ebook very difficult and restrictive. Go for volume at $0.99 and the lower 30% royalty, or jump to $2.99 knowing sales volume will be lower, but return a higher royalty. The mysterious part for me has been why Amazon clearly wanted two tiers of pricing and deterred pricing in the $1.00 to $2.98 range.
Perhaps now the answer is becoming clear. Cheap ebooks, cheap Kindles and profitable advertising.
To be blunt about it, if someone’s ‘buy button’ is purely price, they’ll go for a cheap Kindle no matter what, and will logically use the same ‘cheap as possible’ criteria when downloading ebooks onto the device. Very cheap or very free. But for advertising to be lucrative, Amazon needed a huge base of cheap ebooks onto which they can append their advertising.
So thanks to Amazon’s successful self-publishing platform, KDP, they have achieved this aim. Now Amazon can ‘value add’ to all these thousands upon thousands of self-published titles at $0.99, and is some cases free, and reap the rewards. Just a pity none of the authors will see a share of the spoils.
While Google are certainly the king of online advertising, it is now evident that Amazon see a market that is prime for the picking and in time, and not a very long time I would imagine, Amazon will be raking in millions from Kindle ebook advertising. While all the information so far has been about ads on the Kindle itself, don’t be surprised if this will also mean advertising on the Kindle app that runs on PCs, Macs, iPds and smartphones.
Being one who can adapt though, I have already decided what my next book will be titled.
‘The Ronald MacD Mystery – brought to you by ABC Cleaning, Acme Anti-Dandruff Shampoo and Pixie Escorts’
Please click through to our sponsors. You will then be able to read this title once you have registered to receive their campaign newsletters and diatribe. We hope you enjoy your ebook – between advertisements.