Magazine article Editor & Publisher

Adventures in Outsourcing

Magazine article Editor & Publisher

Adventures in Outsourcing

Article excerpt

Some newspapers find it easier and more economical to let someone else help with ad production

AS NEWSPAPER publishers continue to look for ways to lower overall Costs, two West Coast and two East Coast dailies have found it easier to let someone else help with the advertising work.

On the West Coast, the Los Angeles Daily News and the Los Angeles Times have been working with ad outsourcing specialist AdOut, which focuses on production and design of retail and classified display advertisements.

"We use the same computers, the same software and use similar kinds of people," said Jeff Turner, president of Van Nuys, Calif.-based AdOut. "We have learned over the years how to execute ad production. So it's a synergy situation -- it's about creating an environment where people are excited about producing ads:

On the East Coast, New York City-based (and publicly held) Applied Graphics Technologies (AGT), which provides digital prepress and electronic imaging services, decided in 1996 to build on its existing services.

As a result, AGT's newspaper ad management division was formed, providing digital ad composition and electronic transmission services to two of its newspaper clients -- the New York Daily News and the Newark, N.J., Star-Ledger.

"We see this [outsourcing] more and more as a growing trend," said Melvin Ettinger, vice chairman and chief operating officer of AGT. "And it has been very successful."

AdOut, part of privately held parent company J.J. Grace Inc., outsourced the entire Los Angeles Daily News composing room in three months, producing more than 750 ads per week with an outstanding 99.85% error-free rate, according to Turner.

The Los Angeles Daily News is now the only major metropolitian newspaper to successfully outsource 100% of the production and design of all retail and classified display advertisements, resulting in higher quality and lower operating costs, Turner said.

But with turning over all control to an outside company, isn't there a risk of having two different management styles under one roof?

"Even though, yes, there is a perception you are giving up control, you actually get more control. They [the newspaper] have more power over us than they ever had with their in-house," said Turner.

And Larry Beasley, Los Angeles Daily News CEO, president and publisher, couldn't be more happier about the business arrangement.

"They treat us as if they are part of the company," Beasley said. "They are very creative, we have our ad production and in a more timely fashion."

AGT's Digital Link (TM) System, their flagship product, is an integrated suite of software applications that leverages digital technology in image management, which is uniquely suited for the newspaper industry.

"In addition to the Digital Link System," said Ettinger, "AGT has a unique blend of advanced electronic technology and talented people in place, allowing us to provide a new standard of digital advertising services for newspapers and other publications."

Gary Sozzi, vice president/advertising operations director for the New York Daily News, said that "AGT has been working out very well for us and the service has been excellent."

Sozzi stated that AGT currently handles about 70% of their black and white and color ad work and the error-free rate is close to 100%.

And two operations people at the StarLedger, commenting on their relationship with AGT, said that the company handles a large percentage of their ad work practically error-free and the newspaper is very happy with the current business arrangement. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.