STMG, Charlotte
Observer to outsource ad positions
Affinity president says company
is ready to aggressively court new clients for outsourcing.
By Chuck Moozakis
Editor-In-Chief
The ad
production outsourcing movement didn’t miss a beat last month as three more
McClatchy Co. papers and the Sun-Times Media Group said they would send a
portion of their ad production overseas.
McClatchy’s Charlotte (N.C.)
Observer, The News & Observer in Raleigh, N.C., and The Telegraph in Macon, Ga.
— as well as the Chicago Sun-Times and its sister suburban Chicago newspapers —
selected Affinity Express Inc. to oversee ad production.
Affinity, based in Elgin,
Ill., maintains production facilities in India and The Philippines. It’s one of
four companies — the other three being Express KCS, 2AdPro and American
Outsourcing Solutions — targeting newspapers that want to farm out their
prepress to outside firms.
Chuck Griffiths, vice
president of operations at The Observer, said the paper made the decision to
outsource ad production to take advantage of the Mediaspectrum ad tracking
software Affinity uses to underpin its service. The outsourcer teamed up with
Mediaspectrum last year.
“It wasn’t just cost-savings,”
he said. “We liked the software Affinity has and it will give us capabilities in
proofing, reporting and tracking.”
The Observer will cut 25 of
its 41 ad production jobs when the move is completed May 31.
At The News & Observer, 16
jobs will be lost when Affinity begins work this spring.
Up-to-date systems
The Telegraph also decided to
tap Affinity to capitalize on the firm’s ad tracking software, said Joe Mendoza,
vice president of operations and IT regional manager.
“It gives us up-to-date
technology and it will also let us focus on attracting more advertising,” he
said.
All the newspapers will retain
a core group of advertising staffers who will continue to deal with key
customers.
The agreements with the
McClatchy papers comes as Affinity aggressively courts North American newspaper
clients, said David McTarnaghan, president of the firm’s advertising service.
“We believe we now have the
hybrid of tools and technology to help integrate local sales resources with
offshore resources,” he said. “We’re excited to offer these tools and we believe
newspaper are a prime market.”
Affinity made a big splash in
late 2006 when it was picked by The Columbus (Ohio) Dispatch to oversee the ad
production formerly handled by 90 ad designers.
But the first months weren’t
smooth, said Joe Gallo, the paper’s vice president and chief information
officer. It wasn’t until Affinity began using the Mediaspectrum software that
conditions improved, he said.
McTarnaghan concedes Affinity
ran into problems when the company began producing The Dispatch’s ads.
“It was a real learning
experience for us, and we learned that we needed better tools and to have a
single integrated tool to support both sales and workflow,” he said.
Systems key
“Systems are very important in
a deadline-intensive business like newspapers.”
McTarnaghan said that Affinity
has ironed out many of the operational wrinkles it formerly faced and is now
ready to capture a bigger piece of the outsourcing pie.
It has more than 40 newspaper
clients in North America now, he said, with clients that also include The State
in Columbia, S.C., and The Recycler in Los Angeles.
It beefed up its marketing
efforts, adding former (New York) Daily News Publishing Technology Director T.J.
Ceballos as vice president of solutions management.
And the company can draw on
the financial resources of Ayala Corp., the Manila, The Philippines-based
conglomerate that bought Affinity in late 2006.
“Newspapers are being forced
to take a new look at their business models,” McTarnaghan said of the role
outsourcers such as Affinity can provide.
“We’re not driving the market.
What’s driving it is online advertising, and that is causing a huge change to
take place. Our approach is not just making the ads, but helping papers sell
them. That means you want to take a look at automating and to use tools to
improve performance and to help newspapers integrate online and display ads and
to help them transact business.”