Forecast: Amazon Echo To Generate $1B In Ad Revenue

Much attention has been paid by radio in recent weeks to the Amazon Echo as a pathway to increased listening. More recently, Randy Kabrich included the device in the center of the Tampa ratings conversation.

However, there’s an emerging story about Amazon that could be even more significant. The retailing juggernaut is quickly generating ad revenue and Echo is well positioned to play a significant role in that growth moving forward.

On Amazon’s latest earnings call, the company reported that ad revenue increased 60% year over year and analysts now believe it generates $1 billion annually.

According to Andrew Curran, President and COO, DMR/Interactive in the latest End Results blog. “Amazon's fastest growing billion dollar division isn't drone deliveries, it's advertising.”

With 50% of US households belonging to Amazon Prime, the online retailer’s ability to include audio, video and search consumption with purchase data is the Holy Grail that other platforms including Facebook and Google can only dream of.

Meanwhile, the proliferation of Echo devices also provides an opportunity for radio to regain at-home listening after radios began disappearing from households during the last decade. In fact, it represents a unique opportunity for radio to be thoughtful about developing a strategy that keeps your station Top of Mind on a device that is purchased initially as a personal assistant.

After all, Curran continues, “Radio has a tremendous value proposition and dominant market share in audio. However, Echo isn't going to tell our story for us. Crafting a compelling value proposition for why your station should be Top of Mind for listeners on voice activated devices is time well spent, especially as voice command becomes more prominent in cars.”

For information on how to incorporate Echo and generate more listening occasions among those who matter most, email DMR/Interactive at DMR360@dmrinteractive.com