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$10 Billion Market

· Advertising,AI,google

RBC Capital Markets has reported that Alexa’s contribution to Amazon may hit the $10B market by 2020. The picture above is just one of those billions.

Going from $0 two years ago to $10B in two years is a significant achievement. Back in September, I had estimated that Alexa was contributing about a billion dollars based on back of the napkin estimates from available figures. It’s interesting to see how this number is now playing out.

Voice is really just one step towards making commerce in some instances more effective and reducing the barriers to purchase. There’s another realm with marketing…

What we may soon see as Google Home ups its efforts in voice is the addition of complexity in marketing channels. Just like derivative markets for stocks, we’ll see AI start to create these for advertisements… think of emotion based ad campaigns, campaigns targeted to personality type, or even intelligence-based ads.

Sounds creepy? So did keyword based ads on Gmail when it came out well over a decade ago.

What will really dictate our acceptance of these new channels is whether they are useful to us. In they won’t offer us value, they will come across as sell-y and ultimately fail.

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