The Cole Papers July 2003

Leverage (upper left): Olive Software customized its ActivePaper software to make ActiveTearsheets.

Abracadabra (top): MerlinOne performs tearsheet magic at the Boston Globe.

Stampede (above): Shoom's iTearsheets is in use at six Canadian newspapers, including the Calgary Herald.

Tearsheet suppliers refine products; newcomers arrive

LAS VEGAS -- An old joke in newspapering goes something like: "This is the only business that spends thousands of dollars and hundreds of man-hours to develop a product and then entrusts it to a 12-year-old for delivery."

Obviously an old joke, because today few papers are actually use "youth delivery" (aka paperboys) anymore, but you could reword the joke a bit and say, "This is the only business that spends thousands of dollars and hundreds of man-hours to develop an all-digital product and then entrusts the U.S. Postal Service to deliver it."

Well, not all of it, but certainly to a significant readership: advertisers.

Proof-of-publication of advertising -- tearsheets -- have until a few years ago worked the way they did since the hot-metal days: a bunch of clerks tear pages out of the paper, fold them neatly, put them into envelopes, address the envelopes and mail those envelopes off to advertisers. There is also the added factor that some of the envelopes get lost, so the process is repeated -- often multiple times.

And, adding insult to efficiency, sometimes ad sales executives are obliged to drive a tearsheet out to a complaining customer.

Of course today the only papers that hand-process tearsheets are hopelessly behind the times. Electronic tearsheets are now in vogue and have swept the industry. Well, at least swept the supplier industry.

While we had a list of 22 companies showing some type of electronic tearsheet system at NEXPO 2002, this year the list has shrunk somewhat: we're down to a baker's dozen (plus two).

The product category has crystallized somewhat in the last year as well: suppliers fall into three main categories, two subcategories and three sub-subcategories.

The systems are either hosted web services, in-house web product or e-mail; further they are either scanned pages or pages from the digital output of the paper, and of those that are digital output, they are represented as either Portable Document Format (PDF), Scalable Vector Graphics (SVG) or eXtensible Markup Language (XML).

While you can't mix-and-match, you can pretty much find a supplier that will probably meet your need.

The two leading suppliers are:

  • MerlinOne Inc. of Quincy, Mass., which announced at NEXPO that it had sold its E-Sheets service to four newspapers of The McClatchy Co. of Sacramento. Also at NEXPO, MerlinOne announced it had reached an agreement with Tribune Co. to provide six of its 11 papers -- including the Chicago Tribune and Baltimore Sun -- with the Merlin Digital Picture Desk/Archive system (late breaking news: Usa Today has also signed up for E-Sheets); Tribune and Knight Ridder have agreed to standardize all their papers on E-Sheets, which currently manages more than 1 million PDF ad pages and records.

  • Shoom Inc. of Los Angeles, is the granddaddy of the electronic tearsheet: a predecessor company started research on the concept in 1996. One of the first papers to go live on a digital tearsheet system -- the Plain Dealer of Cleveland -- is a Shoom customer and two years later is still a happy customer. The company's latest sale was to a group of five metropolitan papers in Canada controlled by the CanWest, which also runs six other large dailies and 25 smaller dailies and weeklies North of the Border. Shoom's iTearSheet service is currently at Version 3.1.

    Pioneers, new offerings
    And from there, things drop off rather precipitously.

    Ad Looks Inc., another pioneer in the field, lists four newspapers as customers, though the company handles the scanning of tearsheets for almost 150 advertising agencies and retailers. In addition, the Rocklin, Calif.-based Ad Looks put out a press release last year saying it had struck a deal with Cox Newspapers Inc. to provide the service to even the publisher's smallest dailies. The company provides a hosted web-based service and the images are high-resolution Jpegs.

    Atex Media Command (AMC) of Bedford, Mass., Engage Inc. of North Andover, Mass., and Graphic Enterprises Inc. (GEI) of North Canton, Ohio, each have one customer for their products.

    The AMC service, called eTearsheet, uses the paper's digital workflow as a source for its service but it has an interesting twist: rather than the usual PDF file, eTearsheet uses the SVG format, which is more compact; the downside to SVG is that there are a lot more PDF viewers than SVG viewers out there. AMC's customer is the Arizona Republic.

    Engage's big electronic tearsheet customer is the Wall Street Journal (and it's hard to get bigger than that). Right now, though, the company isn't particularly focused on its AdApproval product (it didn't exhibit here at NEXPO); during the show the company announced that it was insolvent and that it had entered Chapter 11 bankruptcy. Engage has found a buyer for its assets and should the courts allow it, its assumed that AdApproval will become the property of Scene7 Inc. of Novato, Calif., a maker of dynamic imaging systems, which has among its investors one named The Hearst Corp.

    The GEI product, called Electronic Tear Sheet Server, is designed to be used in-house (but see its relationship to Presteligence, below) and provides a variety of standard web-based functions including thumbnail representations of pages and links between the invoice and the ad. It has been in use for almost two years at New York's Buffalo News.

    In the still-seeking-customers category are Jim Kelley & Associates Inc. of Wilkes Barre, Pa., and Gannett Media Technologies Inc. of Cincinnati; both market the JK&A DTS-800 system, which relies upon a high-speed scanner and in-house database (see The Cole Papers, April 2003). Novus Print Media of Plymouth, Minn., has placed its adPop system with a variety of retailers (the company is a big ad placement firm), but at this point has yet to have sold a newspaper. The system e-mails the tearsheet to the advertiser.

    Which brings us to the new products shown at NEXPO for the first time. Five players with related product lines that are established and one new-comer round out our scorecard:

  • Brainworks Software Inc.: The Sayville, N.Y.-based supplier of editorial, advertising and business systems announced a tearsheet faxing feature for its display advertising module at the show, which uses pages from the digital workflow.

  • Harris and Baseview: The application service provider portion of the business -- Baseview Internet Technology Services or Bits, based in Ann Arbor, Mich. -- showed its e-tearsheets offering at NEXPO, a service that uses digital pages for input and PDF for output.

  • Mactive Inc.: The leading provider of classified systems has added TearView to its product line. The Melbourne, Fla.-based company says it has integrated not only pages but also billing information and that when a tearsheet is ready, notice is delivered by e-mail, with a link to a secure web site.

  • Morcor Inc.: The maker of the Xpance display advertising workflow and tracking system introduced XpanceNET at NEXPO, which is a web-based management tool. The Canadian company's eTearsheets is a module in the XpanceNET product that allows papers to store PDF or JPEG representations of the pages (which can come from either the digital workflow or from scanning).

  • Olive Software Inc.: The provider of digital replica delivery and digital full-page archiving systems (both called ActivePaper) has introduced the ActiveTearsheet offering, which leverages the company's existing technologies and services. The pages are stored and delivered in an XML data structure.

  • Presteligence: A consortium between a British management consulting firm and Graphic Enterprises Inc. built a tearsheet service in the United Kingdom called Ad Infinitum based on GEI's Electronic Tear Sheet Server. At NEXPO, the New York-based company announced that the service is now available in the United States.

    Suddenly server
    This is all well and good, but let's say I'm a big national firm that advertises extensively in newspapers: let's say I advertise in 500 daily titles around the country; that means I'll have 500 web sites to visit (or 500 e-mail packages to receive) every day.

    Not good.

    Solution No. One would be to get all the papers on the same system; antitrust, restraint-of-trade and other lawyerly issues -- not to mention the contrariness of newspaper publishers --impede that.

    Solution No. Two would be to build a mega-search engine that could go to all the web databases of newspaper tearsheets and build an advertiser a directory of all their ads that ran, for example, today.

    Good.

    And, for the last 18 months, a valiant crew of newspaper executives jas been trying to do that. "We were working the NAA [Newspaper Association of America] and the AP [Associated Press], and they said they were interested," said Bob Dagostino, a member of the NAA committee on all things digital tearsheets who in real life is the digital advertising manager of the Plain Dealer.

    But at a meeting around the first of the year, the news cooperative appeared to have lost interest in building the tearsheet search engine. "We thought it was a dead issue, just at the time e-tearsheets are getting more and more popular," Dagostino said. But at NEXPO the news cooperative indicated that it still had interest in building the system.

    "It's not their No. One priority," Dagostino said, but discussions between the committee and the owner of the AdSEND and AdVantage advertising delivery and ordering systems have been restarted.

    -- dmc

    Ad Looks Inc.,
    (916) 660-1501,
    e-mail: jferra@ad-looks.com;
    The Associated Press,
    (212) 621-1500;
    Atex Media Command Inc. (AMC),
    (781) 275-2323,
    e-mail: info@amc.com;
    Brainworks Software Inc.,
    (516) 563-5000,
    e-mail: info@brainworks.com;
    Engage Inc.,
    (978) 684-3884,
    e-mail: info@engage.com;
    Graphic Enterprises Inc.,
    (330) 494-9694,
    e-mail: sales@geiworldwide.com;
    Harris Publishing Systems LLC,
    (321) 242-5330,
    e-mail: marketing@baseview.com;
    Jim Kelley & Associates,
    (717) 477-2901;
    Mactive Inc.,
    (321) 254-5559,
    e-mail: info@mactiveinc.com;
    MerlinONE Inc.,
    (617) 328-6645,
    e-mail: info@merlinone.com;
    Morcor Solutions Inc.,
    (613) 354-2912,
    e-mail: info@morcor.com;
    Novus Print Media,
    (763) 476.7700;
    Olive Software Inc.,
    (720) 474-1220,
    e-mail: info@olive-soft.com;
    Presteligence,
    (212) 295-2210,
    e-mail: info@prestiligence.com;
    Shoom Inc.,
    (800) 446-6658,
    e-mail: info@shoom.com.

    From THE COLE PAPERS, July 2003
    Copyright © 2003, All Rights Reserved.

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    Modified date: 07/23/2003, 8:32:43 AM.
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