“One of our clients has enjoyed a 31 per cent increase in real estate advertising revenue due to a reduction in production costs, which can be linked to the introduction of the AdConstructor system two years ago.” - Madeline Weeding, Account Project Manager, Workstream Solutions
Not many designers are familiar with the work of Stefan Williams, which for him is probably a good thing. The CEO of Sydney company Workstream Solutions is the creator of AdConstructor, a pioneering, automated web-based publishing system that is changing the face of publishing across Australasia, the Americas and this year Europe.
The online system is used to render more than 50,000 artwork proofs each day – the equivalent of 2,550 designers working full-time with 20 clients each.
“In 2007, just over one million real estate ads were self-created by clients using AdConstructor,” says Williams. “We estimate an increase to over two million ads in 2008.”
Williams might want to start hiding.
Designed to streamline the management of real estate advertising, AdConstructor is delivering significant cost savings to newspaper publishers in Australia and around the world.
“One of our clients has enjoyed a 31 per cent increase in real estate advertising revenue due to a reduction in production costs, which can be linked to the introduction of the AdConstructor system two years ago,” says Madeline Weeding, Account Project Manager, Workstream Solutions.
Since its creation in 2003, the online design solution has been adopted by clients including News Limited, West Australian Newspapers, ACP New Zealand, The Times Leader and Contra Costa Newspapers in the USA.
The automated, self-service system improves relationships between newspaper publishers and their real estate advertising clients, by overcoming issues such as time consuming proofing and approvals, inflexible deadlines, printing and copy errors.
Contra Costa Newspapers has stated that the elimination of adjustments for ads processed through AdConstructor will save US$60,000 annually. “We have virtually removed all credits or make goods and are about to eliminate adjustments of about US$5,000 per month,” says John Stoeser, Advertising Operations and Systems Manager, Contra Costa Newspapers.
Unlike other web-based systems which only handle the ‘proof and approval’ side of the design process, AdConstructor controls the complete online production cycle. Real estate advertisers enter through an internet portal to book ads, manage ad placement, and generate their own artwork ready for print.
The template structure ensures ads meet branding criteria and automatically colour-correct photos with the ICC profile for each specific publication. Automated pagination allows advertisers to assemble full pages and instantly preview and approve changes, significantly reducing mistakes caused by double-handling during the approval process.
“Using the system means we minimise issues with advertisers supplying too much copy or inappropriate quality images,” says Dean Sapsford, Manager of Creative Services & Brand Management, Tourism NSW. “The system manages that for us. It’s a huge time saver.”
Today, the AdConstructor system houses 52,000 online design templates for more than 750 different real estate agency brands. On average, 32,000 pieces of ad artwork are created each week, and usage of the system is expanding at over 100% per annum.
The seasonal, ‘boom-and-bust’ nature of the real estate industry means an on-demand software solution like AdConstructor is inherently suited to the cycle of real estate advertising. As Williams explains, AdConstructor is a scaleable solution with no upfront costs, which means ad make-up costs stay in-line with ad revenue.
“Ordinarily, events such as the subprime mortgage crisis in the US would destabilise Contra Costa’s real estate advertising revenue stream,” says Williams. “Thanks to the pay-as-you-go nature of AdConstructor, they don’t have the same big overheads when ad revenue falls.
“On the other hand, when the real estate industry is booming, the infinite scalability of AdConstructor means you don’t need to employ extra staff – the web-based system can handle unlimited ad volume.”
For many newspaper publishers using AdConstructor, an increase in the upsell of ad space was an unexpected – yet very welcome – side effect of the system’s easy-to-use web interface.
According to Weeding, one newspaper publisher has noticed an increase in upsell from half-page to full-page ads over six months since the system was implemented. “The publisher attributes the increase to the fact that AdConstructor lets advertisers create their own mock-ups and make adjustments,” she explains. “Taking control of the design and layout process inspires advertisers to buy more space, because the system is fast and user-friendly.”
Newspaper publishers are not the only ones to reap the benefits of AdConstructor. Advertisers enjoy using the system, too, because it reduces the lead-time between booking deadlines and artwork creation from an average of three days, down to the final hour before the press deadline.
Williams says advertisers also appreciate the automated control over photographic reproduction, with pre-coded formatting rules and templates that ensure photographs are reproduced in the best possible quality. “This reassures advertisers, because they have direct control over the presentation of their brand, as well as greater branding consistency,” he says.
Real estate advertising appears to be ‘bucking the trend’ toward online advertising. According to PANPA Bulletin figures published in July 2007, 21 per cent of the population are more likely to use a local newspaper to peruse the property section – the same percentage as 2001 – than the internet (9 per cent). Employment and motoring sections are now more likely to be read online than in a newspaper.
(Source: PANPA Bulletin July 2007 – Roy Morgan Single Source)
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