Illustration: Aïda Amer/Axios

A new report from GroupM's Brian Wieser, one of the top advertising industry analysts, finds that large online marketplaces account for a majority of e-commerce activity and are growing as a percentage of e-commerce activity at a faster rate than direct-to-consumer (D2C) brands.

Why it matters: Following e-commerce trends is important in understanding what shapes the media industry because of the ripple effect it creates in the types of advertising growth.

How it works: Online marketplaces like Amazon have become media owners themselves, and generate online ad revenue — mostly by expanding their search capabilities — from the manufacturers and brands they work with.

  • This is likely helping the bigger search ad market, because marketplaces need to drive traffic to their websites, Wieser argues.
  • By contrast, D2C brands typically spend much more on social platforms and with influencers.
  • Because D2C companies are experiencing slower revenue growth than marketplaces, Wieser argues that this could have a decelerating effect on certain social channels, but it will likely be offset by the fact that direct brands will begin to spend a greater percentage of their revenue on advertising.

Be smart: In a new piece for Bloomberg Opinion, Shira Ovide wisely points out that investors wrongly treat Amazon's $11 billion advertising sales business as a standalone operation akin to Google, when in reality, Amazon's ads are an added fee for sellers on Amazon.

What to watch: As Amazon Prime Day rolls into its second day Tuesday, some of its competitors may see a lift in online shopping, Axios' Erica Pandey reports.

Go deeper: E-commerce is upending Madison Avenue, led by Amazon

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Jeff Sessions loses Alabama Senate primary runoff

Jeff Sessions. Photo: Michael DeMocker/Getty Images

Former Attorney General Jeff Sessions has lost the Republican nomination for Senate to Tommy Tuberville in Alabama in Tuesday night’s primary runoff, AP reports.

Why it matters: Sessions had been the underdog in the race against former Auburn University head football coach Tommy Tuberville, who had the backing of President Trump. Tuberville will now face off against Sen. Doug Jones (D-Ala.) in November, who is considered to have one of the most vulnerable Democratic Senate seats in the country.

Updated 5 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 9 p.m. ET: 13,273,537 — Total deaths: 577,006 — Total recoveries — 7,367,106Map.
  2. U.S.: Total confirmed cases as of 9 p.m. ET: 3,424,304 — Total deaths: 136,432 — Total recoveries: 1,049,098 — Total tested: 41,764,557Map.
  3. Politics: Biden welcomes Trump wearing mask in public but warns "it’s not enough"
  4. Public health: Four former CDC heads say Trump's undermining of agency puts lives at risk — CDC director: U.S. could get coronavirus "under control" in 4–8 weeks if all wear masks.

Bank CEOs brace for worsening economic scenario

JPMorgan CEO Jamie Dimon. Photo: J. Lawler Duggan/For The Washington Post via Getty Images

Wells Fargo swung to its first loss since the financial crisis — while JPMorgan Chase and Citigroup reported significantly lower profits from a year earlier — as the banks set aside billions of dollars more in the second quarter for loans that may go bad.

Why it matters: The cumulative $28 billion in loan loss provisions that banks have so far announced they’re reserving serves as a signal they’re preparing for a colossal wave of loan defaults as the economy slogs through a coronavirus-driven downturn.