Introduction to Alexa+
Since 2023, Amazon has been framing Alexa+ as a monumental evolution of Amazon’s voice assistant that will make it more conversational, capable, and, for Amazon, lucrative. Amazon said in a press release on Thursday that it has given early access of the generative AI voice assistant to “millions” of people. The product isn’t publicly available yet, and some advertised features are still unavailable, but Amazon’s CEO is already considering loading the chatbot up with ads.
Early Access and Rollout
During an investors call yesterday, as reported by TechCrunch, Andy Jassy noted that Alexa+ started rolling out as early access to some customers in the US and that a broader rollout, including internationally, should happen later this year. An analyst on the call asked Amazon executives about Alexa+’s potential for “increasing engagement” long term.
Advertising Opportunities
Per a transcript of the call, Jassy responded by saying, in part:
"I think over time, there will be opportunities, you know, as people are engaging in more multi-turn conversations to have advertising play a role to help people find discovery and also as a lever to drive revenue."
Like other voice assistants, Alexa has yet to monetize users. Amazon is hoping to finally make money off the service through Alexa+, which is eventually slated to play a bigger role in e-commerce, including by booking restaurant reservations, keeping track of and ordering groceries, and recommending streaming content based on stated interests.
Monetization Efforts
But with Alexa reportedly costing Amazon $25 billion across four years, Amazon is eyeing additional routes to profitability. Echo Show devices already show ads, and Echo speaker users may hear ads when listening to music. Advertisers have shown interest in advertising with Alexa+, but the inclusion of ads in a new offering like Alexa+ could drive people away.
Conclusion
The introduction of ads to Alexa+ could be a significant step for Amazon in its efforts to monetize the voice assistant. However, it remains to be seen how users will react to the inclusion of ads in their conversations with Alexa+. As Amazon continues to roll out Alexa+ to more users, it will be important to balance the need for revenue with the need to provide a positive user experience.
FAQs
Q: What is Alexa+?
A: Alexa+ is a generative AI voice assistant that is an evolution of Amazon’s voice assistant, making it more conversational, capable, and lucrative.
Q: Is Alexa+ publicly available?
A: No, Alexa+ is not publicly available yet, but it has been given early access to “millions” of people.
Q: Will Alexa+ include ads?
A: Yes, Amazon’s CEO is considering loading the chatbot up with ads to help drive revenue.
Q: How will ads be used in Alexa+?
A: Ads will be used to help people find discovery and drive revenue, potentially through multi-turn conversations.
Q: What are the potential risks of including ads in Alexa+?
A: The inclusion of ads in Alexa+ could drive people away if not implemented carefully.
