Amazon is considering integrating advertising into conversations with its revamped digital assistant, Alexa+. CEO Andy Jassy indicated that multi-turn conversations could facilitate ad placements for discovery and revenue. A subscription model beyond the current offering may also be in development to potentially offer an ad-free tier. Alexa+ launched after overcoming technical challenges, promising a more human-like experience than its predecessor. Despite 500 million Alexa devices, Amazon's Devices & Services unit has faced significant financial losses, leading to the need for new revenue streams including advertising.
"There will be opportunities, 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."
"After a development process allegedly hampered by a myriad of technical issues, Alexa+ started rolling out to users' Amazon Echo devices earlier this year, albeit with a limited feature set compared to Amazon's final vision for the product."
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