Top Stories

  • Amazon.com Inc. will start using self-piloted drones to deliver packages to customers in the coming months, although the company did not provide a specific timeline or locations where the drones will make deliveries. Jeff Wilke, head of Amazon’s retail, said the drones can fly up to 15 miles, deliver in 30 minutes and carry goods that weigh up to 5 pounds, such as a paperback book or toothpaste. (The Associated Press)
  • YouTube said it will remove thousands of videos and channels that promote neo-Nazism, white supremacy and other ideologies “alleging that a group is superior in order to justify discrimination, segregation or exclusion,” as well as videos that question whether mass shootings, such as the one at Sandy Hook Elementary School, actually took place. It also reversed its earlier determination that Steven Crowder, a right-wing creator who used racial language and homophobic slurs to describe a journalist, had not violated its policies, deciding instead that Crowder did break its rules and would not be allowed to receive money from ads. (The New York Times)
  • At Walmart Inc.’s annual meeting, CEO Doug McMillon urged Congress to raise the minimum wage, arguing that the current $7.25-an-hour rate is “too low” and that it’s “time for Congress to put a thoughtful plan in place” to change that. Walmart is the country’s largest private employer with 1.5 million employees and currently pays employees $11 per hour as a starting wage, which is less than the rate at Target Corp. and Costco Wholesale Corp. (Bloomberg)

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Events Calendar (All Times Local)

06/06/2019
ADMERICA 2019
American Advertising Federation’s Mosaic Awards
FT Future of News 8:00 am
06/07/2019
ADMERICA 2019
American Advertising Federation’s American Advertising Awards
06/08/2019
ADMERICA 2019
06/10/2019
The Fortune CEO Initiative
Recode’s Code conference
06/11/2019
Cynopsis Measurement and Data Conference 11:30 am
The Fortune CEO Initiative
Recode’s Code conference
06/12/2019
Recode’s Code conference
DigiMarCon West 2019
06/13/2019
DigiMarCon West 2019
View full calendar

Introducing: Gen Z’s Most Loved Brands

The definitive guide to which companies are winning over America’s youngest generation.

Advertising

Wrangler Appoints Mother NY As Global Creative Agency Of Record
Lindsay Rittenhouse, Ad Age

Decision comes as the jeans brand is spun off from VF as its own public entity with Lee.

Facebook Didn’t Uphold Political Ads Policy, Rights Group Says
Natalia Drozdiak, Bloomberg

Facebook Inc. bought newspaper ads, shipped top executives to Europe, and briefed officials to show it was doing everything it could to prevent manipulation in May’s European elections.

‘Incredible advantage’: How Amazon’s Sizmek acquisition will address its DSP’s weaknesses
Tim Peterson, Digiday

Amazon’s demand-side platform is widely considered by advertisers to be mediocre — but the retail giant’s enormous trove of customer data means it’s still been widely adopted.

`Big Brother’ Founder Takes Facebook to Court Over Ad Scams
Ellen Proper, Bloomberg

The Dutch billionaire founder of reality-TV hit “Big Brother” confronted Facebook Inc. in court on Wednesday, accusing the social media giant of failing to stop fraudsters flooding its networks with fake Bitcoin ads that featured his image.

Media and Entertainment

Netflix Accused by Fox of `Audacious’ Poaching as Trial Looms
Edvard Pettersson and Sarah Favot, Bloomberg

A lawyer for a pair of Fox studios described Netflix Inc.’s hiring of 17 Fox executives as “very audacious” as the companies head toward a trial in a high-profile fight over talent poaching.

Inside the race to own free streaming video
Sahil Patel, Digiday

Roku expects to top $1 billion in revenue for the first time in 2019. But while the company is still best known for selling streaming set-top boxes and USB-sized dongles, two-thirds of Roku’s revenue this year is expected to come from the advertising it sells across its platform.

More Changes to WarnerMedia’s C Suite
Beejoli Shah, The Information

WarnerMedia has made another change to its leadership ranks, promoting HBO’s executive vice president of marketing, Chris Spadaccini, to chief marketing officer of the whole business.

Craig Newmark, New Friend to Journalism, Gives $6 Million to Consumer Reports
Marc Tracy, The New York Times

An entrepreneur who made a fortune thanks to his digital disruption of the newspaper industry has joined forces with a fearsome nonprofit watchdog publication that is expanding its coverage of the tech industry.

Social Media and Technology

Arii Has Over 2 Million Followers. So Why Did Her Clothing Line Fail?
Diana Pearl, Adweek

252 out of 2.6 million is just over .009%. If you look at that number as a conversion rate, it’s low—too low for anyone who calls themselves an influencer to aspire to.

Ahead of ‘shop’ button for publishers, Snapchat launches in-app stores for Snap influencers
Kerry Flynn, Digiday

While some influencers, publishers and brands have access to a feature where users can swipe-up on snaps to buy products directly within the app, this new tool allows select accounts to have a store within Snapchat.

Hawley Seeks To Bar YouTube From Recommending Videos Featuring Minors
Jason Rosenbaum, St. Louis Public Radio

Missouri Sen. Josh Hawley is taking aim at YouTube after The New York Times reported it was recommending videos of minors to users who watch sexually suggestive content

PR and Marketing

Fiat Chrysler Withdraws Merger Offer for Renault
Nick Kostov and Stacy Meichtry, The Wall Street Journal

French government, Renault alliance partner Nissan balk at deal.

Amazon Retail Chief Defends Private-Label Business Amid Scrutiny
Matt Day, Bloomberg

Amazon.com Inc.’s retail chief defended the company from charges that it unfairly competes with independent merchants who sell on its e-commerce site, saying Amazon’s private-label business is much smaller than those of major rivals.

Average Tenure of CMO Slips to 43 Months
Nat Ives, The Wall Street Journal

Chief marketing officers’ average time in their jobs at the country’s largest advertisers declined by one month in 2018 after improving in the year before.

Campbell Readies Investments in Struggling Soup Business
Micah Maidenberg, The Wall Street Journal

Food company lifts profit outlook; quarterly sales top analysts’ expectations.

Boeing’s rocky road to win back trust after deadly 737 Max crashes: ‘We know we have work to do’
Leslie Josephs, CNBC

Boeing has to win back the trust of the public, airline customers and their employees following two fatal crashes of its 737 Max planes that killed 346 people.

Exercise-Bike Maker Peloton Files Confidentially for IPO
Colin Kellaher, The Wall Street Journal

The number of shares to be offered and the price range for the proposed offering haven’t been determined.

Online Rx startups offer convenience but also raise concerns
Matthew Perrone, The Associated Press

How do you get men excited about decades-old pills for hair loss, erectile dysfunction and other potentially embarrassing health conditions?

Alcohol Brands Have Set Their Blurry Sights on the Slippery Concept of Wellness
Jaya Saxena, Eater

From paleo- and keto-friendly wine to CBD-spiked seltzer, booze companies are trying to court wellness-obsessed millennials.

Tariff Fights Are a Drag for Maker of Jack Daniels
Jennifer Maloney, The Wall Street Journal

Brown-Forman, already hurt by EU’s tariffs on U.S. whiskey, could take another hit if Trump follows through on Mexican tequilas.

Beyond Meat’s home in the meat aisle sparks food fight
Tina Bellon, Reuters

In a bid to directly compete with ground beef and pork sausage, Beyond Meat Inc bills itself the world’s first plant-based burger sold in the meat case of U.S. grocery stores. But interviews with nine U.S. grocery chains show that retailers are still figuring out Beyond Meat’s best fit in their shopping aisles – and it may be closer to the vegan section than the refrigerated meat department so desired by Beyond Meat.

Cocoa’s child laborers
Peter Whoriskey and Rachel Siegel, The Washington Post

Mars, Nestlé and Hershey pledged nearly two decades ago to stop using cocoa harvested by children. Yet much of the chocolate you buy still starts with child labor.

This statistic is a key reason why Walmart, Target and Costco are thriving while other retailers aren’t
Angelica LaVito and Lauren Hirsch, CNBC

Fitness company Peloton announces it has filed confidentially with regulators for an initial public offering.

Mondelez ends pursuit of Campbell’s Arnott’s biscuit brand
Lauren Hirsch, CNBC

Mondelez’s efforts to buy Campbell Soup’s iconic Australian Arnott’s biscuit brand have ended, people familiar with the matter tell CNBC.

Opinions, Editorials, Perspectives and Research

Campbell Soup’s Comeback Needs These Key Ingredients
Sarah Halzack, Bloomberg

Investors seem to be giving its new CEO the benefit of the doubt, but three crucial questions remain.

Like the Digital Revolution, Brands Need to Claim Responsibility for Decisions or Be Left Behind
Luc Wise, Adweek

It’s a necessity, otherwise they could go the way of Kraft Heinz.

The Hypocrisy Of Brands
Joseph Jaffe, Ad Age

Consistency is the essence of any brand but too often the external and internal versions are out of whack.

Morning Consult