How much will Macy's cut ad spending?

The number being thrown around nationwide is $425 million, the result of Federated Department Stores overhauling its ad budget now that Macy's has pretty much taken over its operations. The Los Angeles Times and other papers have taken huge hits in recent years with the consolidation of department stores. It's one of the factors cited by the Times for its ad revenue woes. Fewer chains, fewer ad buys.

Federated spokesman Jim Sluzewski declined to discuss specifics of the campaign but said national magazine buys will be part of the media mix for the first time. "Newspapers will continue to be a very important medium," he said. "The fall launch is one point in time, and what happens longer term is something we are still going to be working on. Our media selection will be driven by where our customers' eyeballs are going." And based on Federated's own spending patterns, that indicates less newsprint and more TV, radio and magazine ads, although the shift has been incremental so far. "Trust me, we aren't jumping off the building yet," said Joycelyn Marek, VP-marketing at Hearst Corp.'s Houston Chronicle, a market that will see 15 Foley's stores switch to the Macy's banner next month, for a total of 17 in the Houston area.

The new media strategy will be launched on Sept. 9.