Comparison Shopping

The merger of Kmart and Sears, Roebuck & Co. has enormous ramifications for television.

First, it marries two powerful TV retail advertisers into a single entity that will dwarf Wal-Mart, its nearest competitor in the home-retailing category, in ad spending. With a combined ad budget of more than $1 billion, the new company, destined to operate under the Sears corporate banner, already spends about three-quarters of its ad dollars on TV outlets, especially national ones.

Big ripples will be felt on Madison Avenue, although it is not immediately apparent what this means for each company’s respective ad agencies.

Sears has emerged as a leader in the arena dubbed “branded entertainment,” which consists of product-placement deals that tie advertisers and brands into the inception of TV programs.

One of the most visible examples is Sears’ successful partnership with ABC in the creation of Extreme Makeover: Home Edition, in which the Sears brand has become an integral part of the series and the retailer’s off-air advertising is used to reinforce and promote it. The spots, featuring host Ty Pennington and carrying the “Good Life” tagline, have connected with viewers.

That effort, which spotlights Sears’ focus on both image and lifestyle, may serve as a blueprint for the future of the new company’s advertising.

Read the article: www.broadcastingcable.com