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Things I Learnt about Online Media Business Model in Startup Indonesia Ecosystem (Part 1)

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We got this kind of questions a lot, “Why do you always talk about How to Make an Online Shop? Talk about Online media business please!”

For that request, I will explore the insights I knew about OnlineMedia Business, both based on my experience and based on interaction with my partners.

Online media we talked about is –for example-,,, ….

Looking from a different point of views, there are several types of startups: technology based startups,- you need a founder with a greatcoding skill ( eg. Instargram, koprol), startups sales – needs a founder with a great sales skill ( eg. Groupon or another startup which need approaching to merchants) and media startup (it took a founder who can generates content)

Before making an online media business models, it is important to know the positioning and differentiation of your ideas in the market, also to do research of what things makes this kind of business model succeed.

Before making, I made ​​a table of media technologies in different countries, what makes Techcrunch ahead of VentureBeat? Why traffic does Mashable’s traffic was greater than Techcrunch? I checked on how many times Michael Arrington (founder of Techcrunch) post on a day, whats online media in this niche which is large in other countries such as Japan, China, and then I pay an attention on my resource while thinking on how to manage an online media in Indonesia with the smallest possibility to fail?

Online media startup founders need to understand the monetizing of online media startup, which generally couldbe monetized to 2 sides: the reader (reader/user) and the other side is the advertiser. Another way of monetizing, if the media is quite niche are to do a job listing and to affiliate (commerce / sell something). It could also be from adsense (= advertising from Google) – remember that if the blog is in Bahasa, the revenue is often came from a small adsense, ad networks could also be a monetizing option.

Media startups in general will say that their business models are advertising, which they said is the most weak business models on the internet (but many first-time founders do not know this) because generally 80 % of the advertising cake will be divided into the old and the big players (eg. Detik, Kompas, Kaskus) while the remaining 20% will be contested between hundreds of other small players. What’s unique from business model of advertising?  In many cases relied on a well built relationship with the advertiser, those first-time founders generally do not have this.

Seeing the player in a successful online media business, the business model is greater than just “a mere advertising “, it’s the advertising agency or digital marketing agency which also combined with the event organizer / event activation.

What do they do? To run this agency business models, the way approaching to a brand is something like this:

Let’s say your online media are the online media in baby niche.

You will come to a brand (could also have been advertising agency which handled the brand), if you come with both agency and media together, this two core competences combined, generally you will be heard. Then you will ask the brand manager about the baby milk products: “What is  your KPI this year? I have a activation and placement agency, also a media that matches your brand value. Whan can I help you?

Then, you will create an event for the brand activation, where media’s dutie is to make a sponsored content, this content made in the form of text or video will be placed to Kompas, detik,etc. The best and complete content will be placed in your own media. For example the video content coul be an influencers interview of mothers on how to care and teach babies, this content will be thrown into various media including the brand’s own microsite and your own online media.

Most of the time this brand has a database of customer / partner that you can also “tebengin” for example ask the brand to do an email blast to their customer database and include a link from the their sponsored content  that point to your website.

In short, what we do is monetizing of the brand by combining the core competence of the agency and the media.