Advertisements coming to a Kindle near you!

Posted on July 5, 2009

dollarI just read recently on the CrunchGear Website that Amazon has applied for a patent for in-book advertising on the Kindle reader. This announcement does not come as any big surprise to me. After all, we do live in a world of capitalism and advertising will always be a part of it.

Based on the article, advertising will not be used on purchased books at retail pricing, which is a good thing. But it may open the door to special editions at discounted prices that will include ads. I am sure they will also include advertising in every "free sample" of a book in the Kindle Store.

I also believe it is inevitable that advertising will also be coming to the kindle editions of newspapers and magazine subscriptions. These publishers cannot maintain their publications on subscription costs alone.

So the real question is...will Amazon be creating a contextual advertising platform similar to Google's adwords? I doubt it will be a cost-per-click model since the web browsing capabilities of the kindle are limited. My guess it will be priced based on impression counts. It will be interesting to see how quickly advertisers will adopt this new platform.

I also think publishers and authors of books will balk if they are not getting a piece of the action so I am sure Amazon will be splitting the revenues with them. I guess time will tell. What are your thoughts?

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