Amazon Introduces Ad-Supported Kindle for $114

Amazon’s Kindle just inched even closer to the $100 eReader dream price. Today the bookseller announced a new addition to the family: Kindle With Special Offers for $114. Same hardware and functionality, but this model comes with sponsored screensavers (read: ads). Buick, Olay (Procter & Gamble), Visa are among the companies doing the first set of ads. See some examples on Amazon.

There will be opportunities for users to give input on the types of ads they see: the AdMash app and website will allow visitors to vote on their favorite versions of ads; Kindle owners can also key in limited preferences from the Manage Your Kindle page. While AdMash is a cute idea and all, it strikes me as just another way to get more eyeballs on the ads instead of a useful activity. From a business perspective, this model opens up some interesting sponsorship and point-of-sale opportunities.

The company also intends to push Groupon-esque special offers to the Special Offers models, such as $10 for a $20 gift certificate, or $1 for an MP3 album.

Is dealing with ads and special offers worth the $25 discount? Depends on how it’s implemented. I don’t pay that much attention to my current Kindle’s screensaver, so if it’s a picture of a Buick instead of Jane Austen, that likely won’t affect me. And as long as the special offers just show up as a choice on my homescreen and don’t pop-up while I’m trying to read a book or something, I wouldn’t mind that, either. It would be nice if the company offered a discounted model with 3G — Special Offers is Wi-Fi only — but otherwise I think this is a good deal for budget-conscious consumers in the market for a Kindle.

Pre-orders for the Kindle With Special Offers start today and ship on May 3rd. No word yet if this model will also sell in retail stores.

I can’t wait to see how Barnes & Noble responds.