Amazon Has Ambitious Plans To Earn From Virtual Assistant Alexa

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Amazon is working with brands across sectors to enable them to build skills on its Alexa platform. From daily news updates to smart-home integrations, banking services, food ordering and cab hailing, Alexa has been equipped with skills as the service expands.

From content, voice assistants are veering towards commerce gradually, say experts. “Voice assistants will see an evolution similar to social media players — from community to content and then commerce. That’s why there is an uptick in Alexa’s brand partnerships,” says Sanchit Vir Gogia, chief analyst, founder and CEO, Greyhound Research. The next big evolution, he adds, will be ad revenues.

Various business models are possible, based on the data Alexa collects — from sponsorship opportunities, where Alexa can indicate available deals, to advertisements through partner apps such as Amazon Music.

“The revenue opportunities could be in the form of direct transaction-based margins, selling Amazon’s own services and associating with partners,” Gogia says, adding that the B2B segment could also be a lucrative opportunity for Amazon.

The competition between Amazon and Google for voice-based intelligence is intensifying, with Google leading in the voice assistant space. But, crucial to their growth will be how these players address the rising privacy concerns among users.



Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.

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