A new Kindle eReader that has ads sells for $114 and is handily outselling the $139 Kindle 3, which does not carry ads. Is it because people want to save the $25? Maybe not.

Quite a few people with the regular Kindle have said they wish they had bought the cheaper version, because they like the ads. Here are some examples:

  • $10 for a $20 Amazon.com gift card.
  • $6 for 6 Audible Books (normally $68).
  • $1 for an album in the Amazon MP3 Store. Choose from more than a million albums.
  • $10 for $30 worth of products in the Amazon Denim Shop or Amazon Swim Shop.

This reminds Bob of the short-lived newspaper “PM,” which was started in New York by Chicago department store owner Marshall Field III during Word War II. Field believed that because of the dire nature of the times, a newspaper should just have news, and not take up space with advertisements. Readers soon complained about the lack of ads, however, and the paper had to send reporters out to cover sales at local stores. Ads, it turns out, are content.

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