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Amazon's Newest Ad Strategy and the Commuter Commerce Opportunity

Amazon's Newest Ad Strategy and the Commuter Commerce Opportunity
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AMAZON'S NEWEST AD STRATEGY

Currently, Amazon garners roughly $5 billion in display ad revenue and is piloting a new initiative to remix its marketing efforts.

The company is to launch an ad program enabling brands to send free samples to customers - for a small fee. With more than 100 million subscribers to its Prime services alone, Amazon expects a higher conversion rate from sample ads by applying consumer data and shopping habits.

The e-commerce giant hopes to push its brand narrative as a trusted delivery service of everyday goods using samples as targeted ads. "Having this huge installed base of users, or really Prime subscribers, and putting something in the box that people will have a high proclivity for liking — that seems like a brilliant Amazon strategy," said Rich Greenfield, a managing director and media analyst at BTIG.


IT'S NOT OVER FOR SEARS JUST YET

Sears Chairman Eddie Lampert just won't give up and is still trying to keep Sears alive. The latest attempt rings in at $5 billion, after Lamper's initial $4.4 billion bid. A statement from Lampert's fund said, "The proposal is the best path forward for Sears, its associates and the many communities across the United States touched by Sears and Kmart stores.” But is it, though?

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J.C. PENNEY STORE CLOSURES


As part of an ongoing store portfolio evaluation, J.C.Penney will be closing three stores over the course of several months. The company saw little momentum during third-quarter sales which steadily declined, opposed to its department store competitors. The retailer will continue to assess physical locations that may not meet required financial targets or represent a real estate market opportunity.

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COMMUTER COMMERCE REPRESENTS A $203 BILLION OPPORTUNITY

"Alexa, find me a new car!" On average, U.S workers daily spend 51 minutes commuting. This represents a $230 billion in-car commerce opportunit by means of dashboard internet connections or smartphones, according to the new Digital Drive study from PYMNTS.com and P97 Networks.

About 73% of 5,000 car commuters admitted to having internet connection while driving, translating to 99 million connected commuters. Amazon has already begun to take advantage of connected drivers with its Echo Auto device, an in-car dashboard smart speaker. The mounted device features Alexa voice assistant capabilities.

In-car connected commerce likely will evolve as consumers grow more comfortable with voice-driven purchasing.


COSTCO PAYS TIFFANY $25 MILLION

2019 is off to a litigious start with brands embroiled in cases of copyright infringement. In the latest, Tiffany & Co. took home a victory this week after Costco was ordered to pay the jewelry brand $25 million dollars. In the culmination of a lengthy 6-year battle, the courts ultimately found that the warehouse club violated copyright infringement laws in their sale of non-Tiffany diamond engagement rings using the, you guessed it, "Tiffany" name.

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THIS WEEK'S BRIGHT SPOT

Singer Kelly Rowland is launching her first-ever activewear collection with Fabletics, the activewear brand co-founded by actress Kate Hudson. The limited edition is set to debut for winter 2019, and carries an uplifting mantra to make "every woman feel bold and powerful." The line reflects Kelly Rowland's on-the-go lifestyle as a working mom. The brand is thrilled to collaborate with Roland, whom they feel is the epitome of powerful femininity.

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