The Amazon.com Kindle Fire is the company’s best selling device according to their Q1 release. The Amazon.com sales team is pitching ad space for the welcome screen. Ad agencies are being told that they would have to spend $600,000 for any package that includes an ad on the welcome screen. The ad would run for two months and includes inventory for Amazon.com’s “Special Offers.” For $1 million, ad agencies would get more inventory and would be included in Amazon’s PR push. However it is unknown whether the ad space is for the current or the next generation Kindle Fire reportedly arriving in July.
Amazon sells ad-supported versions of the Kindle that shows full-screen ads known as “sponsored screensavers” when users shut down the device. It is uncertain whether the Kindle Fire ads being pitched will appear in a similar manner or when the devices are powered on.
Agency executives have declined to participate because they have several concerns. Amazon has not guaranteed a number of devices that the welcome screen ads would reach. “It’s kind of an expensive buy to not get a guaranteed audience and measurement,” said a source with AdAge. “It doesn’t comply with a lot of our necessary planning rigor.”
This pricing level is similar to what Apple was demanding for iAd. Apple was asking for a minimum of $1 million deals when iAd first launched. Over time they cut the ad requirements from $1 million to $500,000 to $300,000 to $100,000.