Amazon's In-House Brands To Explode; DTC Startups Proliferate Thanks To Automation

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Setting Up A Private Practice

Amazon’s private-label brand business is on pace to generate $25 billion by 2022, up from $7.5 billion this year, according to investment firm SunTrust Robinson Humphrey. And Amazon has quietly taken measures to rapidly grow its exclusive brand roster, CNBC reports. One new program, ”Amazon Accelerator,” lets manufacturers submit products to join Amazon’s collection of brands. These products enjoy heightened search exposure and customer data feedback. The company is hiring aggressively with a mandate to “help build a new program to rapidly expand our selection.” More.

Don’t Wait, Automate

The sheer number of direct-to-consumer mattress startups, and their heavy digital ad spending, has become something of a joke. But legacy brands in all categories should wake up to data-driven startups soaking up growth among younger shoppers in the US. “Everywhere you look, and especially on Instagram and Facebook, an explosion of different ‘microbrands’ for gadgets, apparel, cosmetics, furniture and food are now targeting us with uncanny precision,” writes Christopher Mims of The Wall Street Journal. Microbrands are fueled by two automation trends: manufacturing is now more flexible in real-time, and online ad optimization tools have become widespread and easier to use. More.

Ch-Ch-Ch-Ch-Changes

WPP CEO Mark Read is wasting little time in reshaping the marketing conglomerate into his vision of a modern day firm. The group announced a series of executive shake ups Friday, including naming Wunderman UK Group CEO Stephan Pretorius as the holding company’s first chief technology officer, “charged with cozying up to Abode, Facebook, Google et al,” More About Advertising reports. In addition Lindsay Pattison, formerly chief transformation officer in charge of facilitating former CEO Martin Sorrell’s vision of “horizontality” across the group, will now be WPP’s chief client officer. And Andrew Scott will become WPP’s global COO. The personnel moves come just a week after Read merged WPP agencies VML and Y&R to create VMLY&R. More.

Send Me Your Location

With Instagram co-founders Kevin Systrom and Mike Krieger riding off into the sunset, Facebook is full steam ahead on its plans for the app. The platform is prototyping a new privacy setting that will allow it to share user location histories with Facebook to help the big blue app better target ads, TechCrunch reports. It’s not clear whether the feature will be opt-in or opt-out, or if Facebook will end up rolling it out as a real product. “As you know, we often work on ideas that may evolve over time or ultimately not be tested or released,” a Facebook spokesperson said. More.

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