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

IoT Device Management Demand Gains Momentum

More forward-thinking CIOs and CTOs are focused on the adoption of the Internet of Things (IoT). Management challenges are top of mind for those who have already deployed a large number of sensors and associated network edge devices. Device management services are evolving in response to a greater breadth of new device technologies such as edge intelligence and related connectivity solutions, as well as the customer scalability and security of IoT deployments. But forward-looking suppliers are also preparing for a world where 41.3 percent of the connected devices will be using some form of Low Power Wide Area (LPWA) technologies by 2026. IoT Device Management Market Development Since IoT customers increasingly need to manage a larger fleet of connected devices, ABI Research now forecasts that IoT device management services will exceed $36.8 billion in revenues by 2026. Standardization is beginning to play a bigger role in device management services, as more connected devices use LPWA t

Anywhere, Anytime Workplace Demand for SASE

The ongoing adoption of flexible working models within the enterprise market has significant implications for typical IT organizations that must now support knowledge workers and front-line employees that operate outside the corporate network perimeter. The global COVID-19 pandemic created IT networking and security challenges. The expansion of the distributed workforce, an increasing reliance on cloud computing infrastructure, and the requirement to securely connect online employees -- wherever they choose to work, at any given moment in time. Legacy IT solutions that have rigid network underlays and a requirement for on-premises infrastructure cannot adequately deal with these trends. This 'Anywhere, Anytime Workplace' led to demand for new Secure Access Service Edge (SASE) solutions, with networking and security delivered as-a-service. Anywhere, Anytime Workplace Market Development   Although converging networking and security capabilities offer enterprises a promising solut

Cloud Edge Computing Demand Continues to Grow

Public cloud computing solutions are moving closer to the edge of networks where CIOs and CTOs are hosting new apps. The edge journey is well underway for forward-looking organizations as they seek to connect with customers, improve operational efficiency, and adopt digital business technologies to drive innovation. The latest worldwide market study by International Data Corporation (IDC) found that three-quarters of organizations plan to increase their edge computing spending over the next two years with an average increase of 37 percent. A combination of factors is driving this increased spending at the edge. Cloud Edge Computing Market Development The performance requirements of expanding workloads and new use cases that leverage artificial intelligence (AI) and machine learning (ML) demand greater compute capacity at the edge. In addition, the amount of data being stored in edge locations are rapidly expanding, and organizations plan to keep this data longer. As a result, the numbe