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Things I Learnt about Online Media Business Model in Startup Indonesia Ecosystem (Part 2)

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Typewriter close up shot, concept of Online News

 

Hi all, you can read my article about online media business models part 1 in Things I Learnt about Online Media Business Model (Part 1). Today we received a lot of requests to continue to part 2. The following is the part 2 of it :).

 

According to William Wijaya, the investment manager of the IMJ Fenox, Japanese Venture Capital and Silicon Valley which is also investors from TechInAsia through Fenox VC, said, “From my experience of observing many companies from Silicon Valley to Asia, the company business model media does not always depend on the online way such as online advertising (charge to advertisers) or premium content subscription (charge to the user) but also through featured content. Featured content is a content written by a media company to promote a product or service from a brand to clicking “engage” user or a user interacts with the brand in a way more informal way or “fun”.

For example, a media company or a blog that the readers are sport enthusiast will be able to promote Adidas’ “Impossible is nothing” slogan in the daily posting of short stories entitled “Impossible is nothing” how a children from Brazil could be walked a long way up and down the mountain to go to school and eventually graduated. “Impossible is nothing”. Creative contents like this is what makes the company slogan is not undirectly engage with the user, and a large company mainly engaged in consumer goods would be willing to allocate a marketing budget to create a featured content. “- Opinions of William Wijaya got here first, next is my writing (Rein).

In some cases, if in Indonesia, the “agency” business model also applies to social networks, if abroad the general business model of a social network is a self-serving ads, for example, to advertise on Facebook and get the coverage / reach wider, but in Indonesia if you want to run this business model, it would take a long time because it requires huge fundings and unusually large traffic. So what do local social networks do today such as Mindtalk and Pulsk are becoming a digital agency, they even become part of a larger ecosystem that have a agency business (within the group there are Mindtalk, Semut Api, and Klixdigital), Pulsk has a collaboration with Ideoworks.

Some fellow founders and investors says “we do not monetize on media “, some say “the media is not a business” which of course is true but not always true (it is called “dependent”).

Founder of a online media business model startup needs to understand the concept of new media, understanding how to create engaging contents, understanding the concept of the Internet 2.0 (sometimes called User Generated Content) that involves community and expert contributor to build a network effect, which is one of the strategies to reduce the cost of content.

Founder of the online media business model should also content strategy, for example what’s the difference between evergreen content (no expired) and news (there is an expired), extensions to the directory listing, for example we in startupbisnis.com have startupbisnis.net.

For online media business models to be monetized well, usually (but not always) got to have enormous traffic and of course it took a long time to get traffic, the other alternative is to go into a niche, find a niche where the advertisernya have the money to advertise but the ads budget are always allocated to the general media. If in 2012 there are opportunities in men online media niche, in that year men’s brands grew tired of advertising on Detik, Kompas, Kaskus,  and in the middle of 2012 male.detik.com, man.kapanlagi.com, Updaterus, Sooperboy popped up. The question to us founders is how good was your experience in the niche? and are you are familiar with those many brands that are candidates as your advertiser?