Lauri Koop (DPG Media): ‘Having Your Own Ecosystem Reduces Your Dependence on Big Tech’
Operating within dynamic business ecosystems has become the norm. But do you remain part of someone else’s network, or should you build your own? Lauri Koop chose the latter. As former CEO of DPG Media Online Services and of Aimwel – a company that automates marketing campaigns for the recruitment sector – he decided not to follow the dominance of the American tech giants and instead built a successful advertising ecosystem himself.
Originally from Finland and Estonia, Koop worked for German media giant Axel Springer and Monster before joining DPG Media. “I had the privilege of working for major companies, which naturally places you in ecosystems of significant scale and influence.” As a senior executive in the advertising and media industry, he frequently dealt with some of the largest and most powerful companies in the world.
Today, American tech giants like Google, X, and Meta dominate the headlines. But interesting developments are also taking place closer to home. “Northern Europe, where I come from, leads Europe in IPOs. Stockholm alone has more than Germany, the Netherlands, and France combined. Estonia produces six to seven times more unicorns (startups valued at over a billion dollars) per capita than the European average.”
Why is this relevant? Because networked collaboration is the key to overcoming the huge disadvantage Nordic companies face. Estonia only has 1.3 million inhabitants. Like other Scandinavian countries, the domestic market is small. “If you have an idea or ambition in that environment, you’re forced to think internationally from day one. From the start, you consider your role in the broader ecosystem you aim to be part of.”
In a time when more people, systems, and businesses are digitally connected than ever, your focus can’t just be on the product or service you offer. The value you create for consumers, end users, and all other ecosystem participants becomes fundamental.
The Role of Technology
“Technology is at the heart of how modern ecosystems serve customers,” Lauri Koop continues. “And every major company either wants or already has its own ecosystem.” He cites Uber with Uber Eats, Airbnb offering insurance and other services, and Spotify with its podcasts. Amazon’s ecosystem spans Alexa, Prime, Payments, Music, the AWS cloud, and services in healthcare, marketing, and logistics.
The benefits of ecosystems are broad. They unlock new revenue streams and business models, accelerate tech adoption, lower costs, and improve efficiency. And perhaps most importantly: they give their owners power and control. “Once you have or are an ecosystem, others can’t just push you aside. Five of the world’s seven largest companies are either digital ecosystems or own one.” Even Nvidia is pivoting from GPU/chipmaking to building AI Robotics Ecosystem – an ecosystem with massively larger revenue opportunity than only providing the chips that power AI platforms.
“It’s also clear that the Americans have mastered this dynamic. Europe, so far, has not kept pace. China may catch up in time. We must admit: the U.S. is doing something right here.” Still, Koop believes it’s essential to consider your own position and opportunities. He shares three examples from his own experience: an SEO ecosystem, an app store, and an alternative advertising platform.
Flywheels for Growth
First, an observation. “In the U.S., just 16 major media companies dominate Google’s top organic (non-paid) search results. That is because they host a vast amount of highly authoritative, search-optimized content. They also own many web domains that extensively interlink. For example, Hearst’s Cosmopolitan links to sister brand Marie Claire.”
This makes it nearly impossible for an ordinary company to break through. To claim and maintain that kind of presence in Europe, Koop quickly formed centralized search engine optimization (SEO) teams at each media group he joined, essentially copying the American playbook. “Media groups that build internal SEO ecosystems can gain a significant competitive edge by leveraging all their resources effectively,” he says.
They can also use targeted content and affiliate partnerships to continuously match supply and demand for people, products, and services. Koop introduced an app store for publishers where third parties could offer their own developed apps. “For example, a widget that offers insurance options on automotive websites, or one that links clothing, shoes, and accessories in images directly to stores selling them. This too creates a flywheel effect – as success grows, so do both widgets and advertisers.”
Advertising Ecosystem
Finally, there is the paid advertising market, where Google plays a dominant intermediary role between advertisers and media companies. Ads from companies like Albert Heijn or MediaMarkt often appear on platforms like DPG, Mediahuis, and Talpa – typically through Google and a web of supporting players: media agencies, analytics providers, data vendors, social platforms, and so on. “All those middlemen together take about half of every advertising euro. Plus, they set the rules, and their services keep getting more expensive.”
This is why it makes sense for media companies to take control. “At DPG Media, we have around 100 brands. In principle, we only need one user consent to carry out commercial actions, giving us a strong position in our own local market. By developing our own ad tech, we were able to work directly with advertisers and agencies.”
According to Koop, this is how several ‘local heroes’ are emerging: ecosystem-style platforms like Funda.nl and Bol.com, which are successful on their own terms. “Even though their market values are no match for the American giants, you can still build a local ecosystem that delivers real value.” Open ecosystems tend to be more successful, he adds, because they offer more value to the end user.
Clearing the Way for Impact
A few key takeaways for anyone looking to claim a leading role in a digital ecosystem: understand what your users want and how you can deliver value. Don’t do what’s easy or comfortable – always act strategically. Work with the right strategic network partners. Clear the path for impact. Building value in one area may mean making sacrifices in another.
“You need a strong team to make all this happen,” Lauri Koop concludes. “Made up of people with an open mindset, able to think beyond existing business models and build something new. And one final note: when building your ecosystem, make sure you get advice from a partner who has the strategic, organizational, and technical expertise to bring it all together – like Anderson MacGyver.”