Place Holder display options prevents Schedule from playing at all

Working with a client who rotates local business video ads with news content.  Some video ads should NOT play at some Display locations.  For example:  An ad for Dairy Queen would not play on a display located at McDonalds because they are local competitors. 

I've set up each video ad as a single Presentation.  I've set a full-screen video place holder on that presentation, assigned only one video ad, and set the Place Holder display options to show the ad at all display locations EXCEPT the local competitor.  

Finally.. I set up a master Schedule that includes all video ads and content.  The idea being that all video ads assigned for that location will play, and will exclude any that have a place holder that is NOT selected for that location.  (Doing that for streamlining and ease of management.)

However... if a Schedule contains ANY presentation place holder that is not selected for that display, the entire Schedule playlist is prevented from playing.  

Is that normal?  The documentation I've read regarding Place Holder display options seem to indicate that what I'm trying to do should work.

Help and suggestions appreciated.