The e-commerce giant Amazon is making a massive change, which is frustrating consumers. This frustration that consumers are experiencing is understandable, especially since the company is now shoving unwanted ads onto paid devices. This is leaving Echo owners infuriated because, generally, a paid version does not contain unwanted adverts. The question now remains, what will the company do about this harsh change it implemented?
Details about this harsh change
The e-commerce giant, Amazon, angered many consumers due to a harsh change the company made to help one of its struggling products. Therefore, the retailer has once again landed in hot water for implementing a change that consumers despise.
Over the past few years, Amazon has reportedly suffered from a severe problem that has impacted the company’s profits. Echo, the company’s Alexa-powered smart speaker, has caused the company to lose billions of dollars due to a miscalculation in how customers would use the product.
In addition, Amazon first launched this smart speaker, Echo in 2014. The company expected consumers to use this device to purchase goods on its website. This is done by simply talking to the speaker’s voice assistant, which is Alexa. Instead, customers used the speaker to complete tasks such as checking the weather and setting alarms.
As a result of this unexpected consumer behavior, the company suffered over $25 billion in losses from its devices. This was according to a report received from Wall Street Journal last year and it was between 2017 and 2021. Amazon launched Alexa+ in February to assist the shore up these losses. Alexa+ is a paid version of Alexa powered by artificial intelligence (AI). It costs $19.99 a month for non-Prime members, and it is embedded in Amazon’s new Echo devices.
Amazon is adding adverts to its Echo Devices
This specific move from Amazon comes after the Chief Executive Officer (CEO) Andy Jassy made a warning during the earnings call in July. The CEO stated that the company would increase Alexa+ advertising as more consumers engage with the voice assistant. The CEO added that “I think over time, there will be opportunities, you know, as people are engaging more multi-turn conversations, to have advertising play a role to help people find discovery and also as a lever to drive revenue.”
When it comes to ramping up advertisements, is a lever Amazon has previously pulled to boost its revenue. For example, this has been evident over the last few months. The Amazon Prime Video ads have gradually been lengthened to last around four to six minutes per hour. This has led to many frustrated customers. In addition, when the adverts were first introduced to the platform last year, they only lasted two to three-and-a-half minutes per hour.
What do consumers want?
Amazon is not the only company that has recently made changed that frustrated its consumers by adding more ads in their faces. Last month, a Samsung backlash occurred from consumers because of the display of advertisements on Family Hub refrigerator Cover Screens. These adverts appear when the screen is idle which means that something constantly have to be played.
Many consumers nationally are making it loud and clear that they are tired of advertisements that are invading their devices. In a recent white paper from ad-filtering company Eyeo and the Harris Poll contained a survey which revealed that consumers believe the disruptiveness of online ads should be regulated.
- It stated that 89% of consumers want limits on the number of ads shown. Also, limits should be placed on the disruptiveness of adverts when visiting a website or streaming content for free.
- Another 89% of consumers stated that they want better ways to control their ad experiences when they are surfing the internet on their devices.
- Also, 61% of consumers said they are less likely to purchase products when repetitive ads interrupt their viewing experience.
Stephanie Hill, who is the former climate marketing strategy lead at WildAid, made a comment in the white paper. She stated that “One of the biggest challenges the ad industry faces in reducing consumer annoyance stems from a lack of innovation and an over-reliance on outdated, intrusive tactics.”