Amazon Is Reaching Out To Brands To Be Part Of Its Beta Program For Audio Ads

Photo: Amazon

According to a report by AdAge, Amazon has been reaching out to some of the top brands including Colgate, L’Oréal and Lululemon, to get them to be part of a beta program for audio ads on Alexa voice-activated devices such as the Echo, Echo Dot, and others.

In a four-slide pitch deck that AdAge obtained, the e-commerce giant is guaranteeing its audio ads will allow advertisers to reach at least one million audio impressions.

The deck also shows that Amazon is positioning the program to brands as an "opportunity to test a new audio ad product that will run within exclusive Amazon audio inventory on Alexa." In addition, the deck reveals that the goal of the beta program is "to test and better understand customer response to a new audio advertising experience."

Photo: Amazon

A few months ago, Spotify and Pandora announced audio ads of their own. However, based on the report, Amazon’s audio ads are much more interactive as they give listeners the ability to speak to the ads and tell Alexa to add products to their shopping carts.

As of now, there are several limitations to Amazon’s audio ads such as brands not having the ability to choose the songs their ads accompany or target a specific segment of shoppers. Also, Amazon didn't give any of the brands that are currently testing the program enough time to create their ads and more importantly, wasn't able to provide them with "key data" on how the ads actually performed.

While it seems Amazon will need to improve its audio ads offering to appeal more to brands and prove their overall value, Amazon’s entry into the audio ads landscape should be of concern for Spotify and Pandora as well as further newcomers.

With the continued growth of music streaming and podcasting as well as the increase in smart devices in the home, audio ads are becoming more and more of an ad format that advertisers are taking into consideration when it comes to allocating their advertising dollars. Since the core of advertising itself is to increase the sales of products or services, Amazon, is in the best position to do that through audio ads as listeners are able to hear an ad and take action in real-time by adding products to their shopping cart through Alexa and ultimately, make a purchase.

Audio ads have been a hot topic over the last few months. Look for that continue in the future.

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SOURCE: AdAge