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Local TV Likely to Lose Federated’s Dollars

Local television is likely to see the loss of the advertising that used to come from Federated Department Stores, which has merged strong regional brands such as Marshall Field’s and Filene’s under the Macy’s banner.

Those local stores relied to some extent on local television advertising. But Macy’s, which launched its largest national ad campaign ever in September, has plans to become a national brand, saying it will use national broadcast, cable TV, magazines and some newspapers to do so, writes MediaPost. What the company didn’t mention was local TV, which means local stations may be deprived of revenue they depended on from the local stores.

Karen Hoguet, Federated’s CFO, says the company plans to use both branding ads and those carrying a value message in the critical fourth quarter. She also says the brand launch was “very successful.”

Macy’s is likely to see significant savings in its ad buying thanks to the merger with the May department store operations. According to the article, the company hopes those dollars can be put to use purchasing more expensive - and perhaps more effective - national ad time.