Skip to main content

Upside for Ad-Supported e-Reader Future Sales


Some people believe that multifaceted media tablets are a more desirable choice than single-purpose e-readers. That said, the U.S. installed base of e-reader devices has more than quadrupled since 2009 and demand remains strong.

eMarketer now estimates more than 20 million e-readers will be in use by the end of 2011 -- reaching 8.7 percent of the U.S. adult population. By 2012, 12 percent of adults will have a Kindle, Sony Reader, NOOK or similar portable e-reader device.

"Two recent developments illustrate the broad reach of e-readers," said eMarketer senior analyst Paul Verna.

First, the Amazon announcement that its lowest-priced Kindle is its best-selling product supports the view that their customers are eager for affordable, no-frills mobile devices that easily enable e-book purchase and consumption.

Second, Liberty Media's $1 billion offer for Barnes & Noble was predicated largely on the book retailer's success with the NOOK Color -- whose list price is nearly double that of the ad-supported Kindle.

eMarketer therefore believes that the upside for product sales at both ends of the e-reader price spectrum bode well for continued adoption of this device category.

Moreover, eMarketer's estimates of e-reader penetration are based on a meta-analysis of several data sources. The penetration figures assume no sharing of devices; where each e-reader corresponds to a single user.

However, many e-reader users indicate that they do share their device. Nielsen reported last year that about a third of e-reader owners share with at least one other person -- meaning they're likely used by millions more people than the reported 12.7 million unit installed base.

Advertising opportunities with e-readers have been limited in the past, but the spring 2011 introduction of the Kindle with "Special Offers" brought the first ad-supported e-reader to market.

"Brand marketers seeking to reach book enthusiasts have a new medium at their disposal with the ad-supported Kindle," said Verna. "Naturally, marketers will want to avoid disrupting the reading experience, but ads on the Kindle screen saver and homepage appear to be hitting the spot where the interests of advertisers, publishers, device-makers and consumers converge."

Popular posts from this blog

GenAI Revolution: The Future of B2B Sales Apps

When B2B buyers consider a purchase they spend just 17 percent of that time meeting with vendors. When they are comparing multiple suppliers‚ time spent with any one salesperson is 5 or 6 percent. Self-directed B2B buyer online research has already changed procurement. IT vendors are less likely to be involved in solution assessment. Now, more disruptive changes are on the horizon. By 2028, 60 percent of B2B seller work will be executed through conversational user interfaces via Generative Artificial Intelligence sales technologies -- that's up from less than 5 percent in 2023, according to Gartner. Generative AI Market Development "Sales operations leaders and their technology teams must prepare for the convergence of new forms of artificial intelligence, dynamic process automation, and reinvented deal-planning activities that will transform the sales function," said Adnan Zijadic, director analyst at Gartner . According to the Gartner assessment, Generative AI (GenAI) s
Read more

GenAI: A New Era in Business Transformation

The advent of artificial intelligence (AI) has ushered in a new frontier of innovation, with Generative AI (GenAI) at the forefront. At the brink of this revolution, it's crucial to understand the current GenAI adoption and its implications for commerce worldwide. A recent poll conducted by Gartner provides valuable insights into this emerging trend and the potential upside opportunities. Generative AI Market Development The poll, which included 1,419 executive leaders, indicates a significant shift in the corporate world's perception and adoption of GenAI. The data reveals that 45 percent of respondents are currently piloting GenAI, while another 10 percent have put it into production. This is a substantial increase from a similar poll conducted in March and April 2023, where only 15 percent were piloting and 4 percent were in production. GenAI is no longer a mere buzzword; it has become a strategic focus for organizations worldwide. As Frances Karamouzis, VP Analyst at Gartne
Read more

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -
Read more