John Gruber, on “Ad Age on Apple and Amazon”:
Interesting take on Apple’s advertising initiatives, but it seems like the ad industry just doesn’t get it that Apple cares more about its customers — their experience, their privacy — than the advertisers. I also detect a sense of entitlement — not just that they want this personal information, but that they think they should have it.
Speaking as someone who's been within the ad world, it's not so much that they think they're entitled to it. It's simple that they don't understand why Apple won't give them access to this data at any price.
TUAW on the release of an ad-supported Kindle from Amazon:
“Still, the $114 price point seems a little silly; $99 would be a much better psychological buy-in point.”
I think that $25 is a fair reflection of the value of the ads. Remember, these ads are home-screen only, and not in the books. Pundits constantly over-estimate the amount of revenue that ads can bring in, and the expectation that Amazon could price a Kindle at $99 based on these kinds of ads is wrong.
No one in the world knows more than Amazon about pricing for a profit.
Market research often falls down on one simple flaw: if you ask consumers what features they want before you show them a product, it’s almost never in line with what they end up buying:
“Consumers didn’t ask for tablets,” she points out in her summary. “In fact, Forrester’s data shows that the top features consumers say they want in a PC are a complete mismatch with the features of the iPad.”
If you give someone a feature list of the iPad, almost no one would buy it. Yet, give them the product, and they do. The “check list” approach to marketing fails – unless you’re marketing to someone who buys with a check list in hand. And who, other than IT managers, ever does that?