OK guys. Let me explain a few things.
The ad agency receives a set fee each year plus a percentage of the value of advertising that is placed.
With regards to print, the changeover to online only weekly ads for all Kmart markets and some Sears markets was done as cost savings. Marketing money was reallocated to other efforts, like the SYW postcards, more intense efforts at member winback, and the blowout sales, which are more successful than the weekly sale changes we had forever.
The Thanksgiving/Black Friday print ad this year is combined into one piece to save distribution and print costs. Did you know we were previously producing, between both banners, up to six separate ad distributions on Thanksgiving week?!! That is designing, printing, and getting delivered through newspapers, stores, alternate distribution and mail SIX pieces in one week. But that is the way we did it forever.
The Kmart side is roughly 50 pages for Thanksgiving/Black Friday. The few pages released on weekly ad are a preview.