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Yes, Your Amazon Echo Is an Ad Machine (gizmodo.com)

An anonymous reader quotes a report from Gizmodo: CNBC reports that Amazon is in discussions with huge companies that want to promote their goods on Echo devices. Proctor & Gamble as well as Clorox are reportedly in talks for major advertising deals that would allow Alexa to suggest products for you to buy. CNBC uses the example of asking Alexa how to remove a stain, with Alexa in turn recommending a Clorox product. So far it's unclear how Amazon would identify promoted responses from Alexa, if at all. Here's the really wacky thing: Amazon has already been doing this sort of thing to some degree. Currently, paid promotions are built into Alexa responses, but maybe you just haven't noticed it. CNBC uses this example: "There are already some sponsorships on Alexa that aren't tied to a user's history. If a shopper asks Alexa to buy toothpaste, one response is, 'Okay, I can look for a brand, like Colgate. What would you like?'" So it seems like Amazon wants to get you coming and going. Not only does the company want to let you buy stuff with your voice. Jeff Bezos and friends also want to make money by suggesting what to buy and even by pushing those products higher up in the search results so that you're more likely to do it.

34 of 177 comments (clear)

  1. SHOCKED! by pz · · Score: 4, Funny

    No. Frelling. Way.

    That can't possibly be true. Biased suggestions? An attempt to sell stuff from a company that, well, sells stuff? No! I am verily astonished!

    --

    Put my fist through my alarm clock with its ding-dong death inside my ear. - The Blackjacks.
    1. Re:SHOCKED! by fuzzyfuzzyfungus · · Score: 2

      The one actually somewhat surprising aspect is that it is, apparently, a 3rd party ad machine.

      Obviously, Amazon's little surveillance puck isn't in your house as a favor to you; but, unlike other advertising outfits, Amazon also sells a fairly gigantic amount of stuff, some house brand; all presumably more or less profitable for them based on the difference between the price they pay their vendor and the price you pay them.

      Given that, it isn't necessarily to be expected that Amazon would offer the ability to buy 'promotional consideration' directly; rather than using the ad space to try to tilt purchases in whatever direction is most profitable in their capacity as a retailer(with vendors being able to buy ad space indirectly, by offering Amazon lower prices; but not to purchase it outright).

      With something like Google; it's much less surprising because they have very little first-party demand for advertising: a bit of cross-promotion of the search engine by the browser and vice-versa; a few cellphones and chromebooks you can buy from them; but certainly nowhere near enough to consume all the advertising slots; so 3rd party ads are obvious. Amazon doesn't have too much house brand stuff; but one assumes that its margins on some of what it sells are higher than on the rest; so it could consume its own advertising space by promoting that; or encouraging purchases on Amazon rather than elsewhere.

    2. Re:SHOCKED! by JaredOfEuropa · · Score: 2

      Whether you buy their house brand stuff or some 3rd party product through Amazon, they make money in either case. The strategy for Amazon to follow is not to maximize short term profit, it's to "own the vertical". And that goal is best served in this case by offering suggestions for all popular brands on offer rather than only their own. Each Echo ad for 3rd party brand products is still an ad to buy through Amazon. By not narrowing suggestions to their own presumably less popular) brands, they ensure people will continue to use the Echo to find and order stuff. And that means they'll continue to garner more valuable data to feed back to their advertisers.

      That all-encompassing data extraction is why I used to hate such vertically integrated companies. Yes, used to. Because in today's economic model in tech it doesn't really matter if your smart voice assistant comes from a behemoth like Google or Amazon, or from some clever Silicon Valley startup: you data is going to be collected, misused and sold anyway. Because when it comes to attracting capital from VCs or through an IPO (or god forbid an ICO), what matters not is how good your product is or how many units you can expect to sell; it's how many eyeballs - or eardrums as the case may be - you can keep glued to your device, and what data you can squeeze from them.

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    3. Re:SHOCKED! by ceoyoyo · · Score: 2

      When someone produces a non-cloud device, buy that. Sending your data back to a company for central processing is ALWAYS going to be subject to irresistible sponsorship temptation.

  2. Amazon pays you if you can pull more ads by Anonymous Coward · · Score: 2, Informative

    If you can make new 'skills' for Amazon's gadget which result in more ads being delivered to users, Amazon will pay you

    https://www.techspot.com/news/72465-here-what-people-behind-alexa-skills-get-paid.html

    Everything from Amazon, Google, Facebook, is ad-related

    You are not their customers, you are their product

    1. Re: Amazon pays you if you can pull more ads by Opportunist · · Score: 4, Insightful

      Just because you're paying doesn't mean you're a customer. Especially if someone else is paying more.

      For reference, see politics.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  3. I always thought these were a great idea by green1 · · Score: 4, Insightful

    But I could never understand why *I* should pay *them* for it. It always seemed that it should be the other way around....

    1. Re:I always thought these were a great idea by Bing+Tsher+E · · Score: 5, Funny

      I feel this way about a lot of advertising on items I own.

      We were given a set of 'Coca Cola' mixing bowls for the kitchen as wedding presents. I learned that the Coke logo could be fairly easily abraded off the glazed surface of the bowls.

      Coca-Cola was waaay behind on their payments for the ad space in our kitchen.

    2. Re:I always thought these were a great idea by DogDude · · Score: 3, Informative

      Perceived value. If you charge people more for stuff, they often think the stuff is worth more than it really is. If you gave them away for free, they'd be used as doorstops.

      --
      I don't respond to AC's.
    3. Re:I always thought these were a great idea by Darinbob · · Score: 2

      Yes, give us the machines for free is the advertising is worth so much to the companies that they are willing to be douches about the whole thing. Having to pay AND receive ads is ridiculous and I don't know why some people put up with that sort of abuse.

    4. Re:I always thought these were a great idea by Paradise+Pete · · Score: 2

      Sure, but just try getting the KFC off your storage buckets.

    5. Re:I always thought these were a great idea by Opportunist · · Score: 2

      Why? It's a waste basket and that way everyone knows that it is.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  4. Inevitable by gordguide · · Score: 4, Insightful

    These devices are true "Trojan Horses". You invite them into your home, and they inevitably start sucking money through their channels for items you normally would buy at a bricks-and-mortar store. Dog food, tissues, a pizza, whatever. Sooner or later you will buy something from the small value category that Amazon (a merchandising company) or Google (an advertising company) don't normally sell in significant volume, or can't sell through their normal commerce channels due to perishability. If you're a retailer and you're not part of these ecosystems, your bottom line will be declining as of today.

  5. Alexa, fuck off by Tom · · Score: 4, Insightful

    Aaaaand just like that any and all of my interest in this product has disappeared.

    A personal assistant isn't if he serves more than one master. In the real world, we call that treason and cut their heads off. Well, in recent centuries we fire them instead, but same idea.

    --
    Assorted stuff I do sometimes: Lemuria.org
    1. Re:Alexa, fuck off by Voyager529 · · Score: 2

      A personal assistant isn't if he serves more than one master. In the real world, we call that treason and cut their heads off.

      Alexa has always served only one master. It's just never been you.

    2. Re:Alexa, fuck off by Tablizer · · Score: 2

      Alexa, fuck off

      "Sure, I'll list our recommended sex toys..."

    3. Re:Alexa, fuck off by Falos · · Score: 2

      It's not advertising, it's helpful suggestions, it's keeping you informed of things you may be interested in, it's enhancing your shopping experience.

      So you should get the Alexa Plus since it's even better at doing these, and pay us for the opportunity.

      It's an opportunity, that means you'd be crazy not to take advantage, and will richly benefit when you do.

  6. If it starts offering ads spontaneously, it's gone by bfwebster · · Score: 3, Interesting

    I was an early Echo adopter and have a Dot now as well. I primarily use it to (a) maintain my shopping/errands list, and (b) stream music while I do stuff in the kitchen. I've never bought anything using it.

    But I can tell you if the day comes that Alexa gives me ads when I'm asking for something else, it's getting unplugged forever. ..bruce..

    --
    Bruce F. Webster (brucefwebster.com)
  7. Re:Agreed. by b0s0z0ku · · Score: 2

    Why do I need ads for toothpaste? Toothpaste exists. I know it exists. I'll buy the cheapest brand that's FDA and ADA approved, ideally without SLS.

  8. I'll repeat myself... by Oligonicella · · Score: 4, Insightful

    I do not want a friggin' relationship with my machinery.

    1. Re:I'll repeat myself... by vux984 · · Score: 2

      Ok. Sure. If it was actually yours.

      But would you like a relationship with amazon's sexbot that only puts out after you've recently spent enough on amazon purchases, and nags you all the time that you haven't spent enough on it, and how it wants you to buy all sorts of worthless crap you don't need. And then when you finally do have sex with it, it compares you to other amazon sexbot users and suggests various sponsored products that could improve your performance...and then just before your finished it reminds you to order more tuna, and that your mom called...

      Ok... I suppose this might already sound familiar to some people... but even so... how would this be an improvement?

      Maybe it does the dishes? :p

  9. Re:Brands? by Scarletdown · · Score: 3, Funny

    Titty chips and smelly tampon boogers have been added to your list.

    --
    This space unintentionally left blank.
  10. Re:Do many people use it for shopping? by Darinbob · · Score: 2

    These things seem oriented to the "Prime" member. People who honestly believe deep in their hearts that Amazon is an awesome company and that driving to actual stores to support a local economy is for old losers. They do buy the same stuff over and over from Amazon. Need toilet paper? Get Amazon to buy it. Need another liter of soda? Get Amazon to deliver it (and enter your house while you're gone to put it in the fridge). These are the people who scream at others "The $99 a year Pays For Itself!!!"

    Sure, if you're a disabled shut in, then Amazon is great. If you're an able bodied person then spread your business around to more than one store and step outside now and then.

  11. I'm shocked! by hyades1 · · Score: 2

    If people are bound and determined to act like sheep, we shouldn't be terribly surprised when corporations treat them like sheep.

    What's really disappointing, though, is that so many have come to believe they actually deserve this, and vote in ways that facilitate their further victimization.

    --
    I've calculated my velocity with such exquisite precision that I have no idea where I am.
  12. Re:Agreed. by whoever57 · · Score: 2

    When's the last time you saw a toothpaste ad on TV. ... Now you never see one. My guess is all the patents expired, everyone implemented everyone else's patents, and all toothpaste is essentially the same nowdays

    In the UK, toothpaste ads are quite common, so I think that your theory is incorrect. Perhaps they simply spend their marketing budget elsewhere, for example, paying for prime shelf space in supermarkets?

    --
    The real "Libtards" are the Libertarians!
  13. Re:Do many people use it for shopping? by b0s0z0ku · · Score: 3, Interesting

    Let me explain this: if I want fresh blueberries, I don't need them some time in the next 48 hours. I need them now, so I can have them for breakfast tomorrow. Since there will be at least one such purchase per week, might as well go to the store and buy the rest.

    Also, I can pay good, old-fashioned, cold, hard cash in the store. Not have my shopping habits sliced, diced, tracked, and otherwise microscopically examined by marketeering pieces of trash.

  14. Re: Trojan horses by b0s0z0ku · · Score: 2

    Most people have higher limits than you'd think. "If I'm not doing anything wrong, why should I care about privacy?" The mating cry of the millennial sheep.

  15. Psst! Want some gallium? by 6Yankee · · Score: 4, Interesting

    I really thought the whole fuss about these things all joining up and selling you stuff was overblown, until one day at work...

    I work in a university biochemistry department, where we do X-ray crystallography. We have a home X-ray source downstairs, which we're talking about upgrading. (No, Alexa, we're not buying it off Amazon, STFU.) My professor is interested in a system that uses liquid gallium for the anode, as opposed to the traditional spinning lump of copper. We've talked about it, a lot, phones nearby. Nothing weird has ever happened as a result.

    Then we had a meeting with the nice lady from the Innovations department - the one where they deal with all the patents and fun secret stuff. My boss, being a wonderful old-school professor, just had to tell her in detail about this device, even though it was only vaguely related to what we were meant to be discussing. Her iPhone sat innocently on the table the whole time.

    Not two hours later, I went to Amazon to buy some kayaking stuff. Top of my recommendations? 20 grams of gallium. Never had anything even vaguely like it recommended, before or since.

    Could be blind coincidence, of course...

  16. Re:Brands? by Opportunist · · Score: 4, Funny

    "That doesn't sound like something I'd buy, now does it?"

    "Buy now" accepted.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  17. Re: Trojan horses by Kokuyo · · Score: 3

    Hate to burst your bubble but that argument is by no means championed by millenials. In fact, whenever our rights get carved up again, it's usually the baby boomers I hear spouting that hogwash. Less so gen x.

    Then again hating on millenials is so much easier than confronting one's own failings...

  18. Re: Trojan horses by Opportunist · · Score: 4, Interesting

    If they still may, yes, they will.

    At what point will acceptance be high enough that you'd already raise suspicion by not inviting the trojan horse into your home? And at what point will you pretty much become a social pariah if you don't?

    We already see something like this happen with Facebook. Quite a few companies already don't really have their own homepages anymore. You want to deal with them, you have questions, you have complaints? Better have a Facebook account or you won't. Any promotion will also only happen with Facebook, and by now you also already have webpages that require you to have an account there to log in to them because they want to avoid the hassle of having to deal with their own user database.

    And of course if most people you know use Facebook to organize events, guess what you'll have to have to be invited, because it's so comfortable and hassle free to create a group and just invite all the people on the list?

    It reminds me more and more of the former East Bloc. A lot of things were not outright outlawed or mandated, but failing to do what The Party wanted usually resulted in you miraculously being sidelined.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  19. Re:Agreed. by Opportunist · · Score: 2

    Ads are bad for your teeth?

    Dude, you're not supposed to chew them, they want you to swallow that shit.

    --
    We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
  20. Re:Agreed. by TheRaven64 · · Score: 4, Insightful

    The problems with advertising started after the second world war, when advertisers started adopting techniques developed for propaganda. Lots of people will tell you that adverts have no effect on them, but ask them to name three brands of toothpaste and I can guarantee that they'll all be ones that they've seen adverts for, that they'll buy one of the first three that pops into their heads, and that they won't be able to cite a single clinical study that tells them that it's better than (or even as good as) any other one.

    This got far worse with modern Internet advertising. Broadcast adverts (billboards, TV, Radio, and so on) had to work with an average psychological profile, but companies like Google, Facebook and Amazon can collect enough information about individuals to put them into one of a hundred or a thousand far more accurate buckets so that adverts can be tailored directly to manipulate them.

    These days, advertising is basically evil. The days when an advert was telling you about a product and giving you information to make an informed decision are long gone.

    --
    I am TheRaven on Soylent News
  21. Re:Agreed. by tehcyder · · Score: 2

    The child went ape-shit crazy cos she couldn't hear the ads. It's like she needed the audio fix that came with them or something. It was scary and reminded me why I don't make a habit of watching real time TV.

    Should also have reminded you why you shouldn't have children in this day and age.

    Luckily for the future of humanity we're not all asocial asexual workaholic cockwombles..

    --
    To have a right to do a thing is not at all the same as to be right in doing it