Week in Review

Antitrust investigations

  • Attorneys general from 48 states, the District of Columbia and Puerto Rico said they are investigating Alphabet Inc.’s Google for possible antitrust violations in its advertising practices, saying they were concerned that the company was inflating costs for advertisers. The members in the group, which excludes only California and Alabama, have a history of winning huge fines from major companies such as cigarette makers and banks.
  • Texas Attorney General Ken Paxton issued a subpoena to Google with more than 200 questions and demands for records, with the apparent intent of looking for evidence that Google abused its dominant position in the digital advertising industry. For example, the subpoena seeks information about Google’s “business rationale” in acquiring DoubleClick, AdMob and Admeld Inc., and in removing YouTube advertising inventory from other ad exchanges.
  • A team of attorneys and at least one economist at the Federal Trade Commission is conducting interviews with small businesses as they look into whether Amazon.com Inc. is abusing its market power to stifle competition, according to three merchants. Antitrust experts say that the interviews indicate that the regulator is gearing up for a serious examination of Amazon. 

Advertising

  • Interpublic Group of Cos. has named Philippe Krakowsky, who has been with the advertising holding company for 17 years, as its first chief operating officer, placing him as Chief Executive Michael I. Roth’s successor. Krakowsky could take over the chief executive role as early as late 2020, people familiar with the company said. 
  • A media investigation found that YouTube runs fraudulent health videos claiming miraculous cancer cures after advertisements for major brands including Samsung Electronics Co., Heinz and Clinique. Samsung saying it had no ties to the videos, and Heinz said it was taking steps to block one channel that was carrying one of its ads.

Marketing and public relations

  • Chief executives of 145 companies, including Levi Strauss & Co., Twitter Inc. and Uber Technologies Inc., sent a letter to Senate leaders asking them to pass gun control bills already introduced in the House of Representatives. Other leaders who signed the letter represented companies such as Airbnb Inc., Gap Inc., Pinterest Inc. and Lyft Inc.
  • After its wildly popular chicken sandwich sold out in two weeks, Popeyes has launched a tongue-in-cheek “BYOB” campaign – that is, “Bring Your Own Bun” – in which the company suggests customers buy three chicken tenders and put them on their own bun.
  • Victoria’s Secret officials said at an L Brands Inc. investor meeting that the lingerie brand is shifting from its supermodel-dominant imagery to marketing that is more inclusive, which includes hiring plus-sized models and a transgender model. Victoria’s Secret Lingerie CEO John Mehas, who acknowledged that the company needs to “evolve,” said one of the new messages in the marketing is “by her, for her.” 
  • Wendy’s Co. said it will offer breakfast to all 5,800 U.S. locations starting in 2020, up from the 300 that already have a breakfast menu. Wendy’s said it will hire 20,000 new employees who will serve its new items, which include the Breakfast Baconator, the Frosty-ccino and honey butter chicken biscuit, and will spend $20 million on the rollout.
  • We Co., WeWork’s parent company, is considering further cutting its valuation, to under $20 billion, as some of its investors are pressuring the startup to cancel its public offering, people familiar with the matter said. The company’s valuation, which reached $47 billion during a fundraising round this year, has taken a hit as potential investors are concerned about We’s governance, business model and ability to turn a profit.

Retail 

  • According to internal company documents, Amazon predicted that its Amazon Go stores would number 56 by the end of 2019 and as many as 156 in 2020, but it currently has announced only 18 locations. The company also forecast annual revenue from all Amazon Go stores to grow from $28 million in 2018 to as much as $639 million in 2020.
  • President Donald Trump said the United States will ban the sale of most vaping products because of concerns about increased teen usage of the product. The Food and Drug Administration plans to pull the popular fruity, mint and menthol flavors, which account for more than 80 percent of e-cigarette brand Juul Labs Inc.’s sales, according to people familiar with the matter. 
  • Walmart Inc. is expanding an “unlimited” option for its grocery delivery service to 1,400 stores this fall, for either $98 annually or $12.95 per month, instead of the usual $9.99 delivery charge for each order.  The retailer said the service will reach more than half the U.S. population this year. 
  • Apple Inc. unveiled its newest gadgets and services, including the iPhone 11, which, at $699, is more than $300 cheaper than the iPhone X. Apple also announced that its streaming service, Apple TV+, will launch Nov. 1, featuring original content and priced at $4.99 a month — lower than competitor Netflix Inc.’s monthly subscription.

What’s Ahead

  • Companies reporting earnings next week include Adobe Inc., Cracker Barrel Old Country Store Inc. and FedEx Corp. on Tuesday and General Mills Inc. on Wednesday.
  • Advertising Week in New York runs Sept. 23-26. Speakers include Dylan Collins, CEO of SuperAwesome; Allan Thygesen, president of the Americas at Google; Martin Sorrell, chief chairman of S4 Capital PLC; Marc S. Pritchard, chief brand officer of Procter & Gamble Co.; Arthur Sadoun, CEO of Publicis Groupe SA; Arianna Huffington, founder and CEO of Thrive Global; Keith Weed, chief marketing and communications officer of Unilever PLC; and Marie Gulin-Merle, CMO of Calvin Klein. 
  • Amazon will be unveiling new products at an event in Seattle on Sept. 25. Those products are likely to include new Alexa-enabled products.

Events Calendar (All Times Local)

09/16/2019
2019 adXchange
MarTech
09/17/2019
2019 adXchange
MarTech
Brand Managecamp
09/18/2019
2019 adXchange
The Next Mobile Push: Let Mobile Be Mobile
MarTech
Brand Managecamp
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