BROADCASTS.com

b'

Mitchell Reichgut. He\\u2019s the CEO and co-founder of Jun Group. Prior to founding Jun Group in 2005, he led Bates Interactive, the online unit of Bates Worldwide Advertising which is now owned by WPP. As general manager and creative director, he helped grow Bates Interactive into a 70-person integrated unit with clients such as EDS, Warner-Lambert and many others. Before joining Bates, he was the creative director at Think New Ideas. He began his career as Art Director at Grey Advertising where he created print and TV ads for clients. Throughout his career, he\\u2019s worked with major brands in the industry including Procter and Gamble, Parker Brothers, Reebok and others.

Famous Five:

• Favorite Book? \\u2013 Anything written by Seth Godin
• What CEO do you follow? \\u2013 Jack Welch
• Favorite online tool? \\u2014 Google Calendar
• How many hours of sleep do you get?\\u2014 5
• If you could let your 20-year old self, know one thing, what would it be? \\u2013 Mitchell wished he knew the kind of discipline it took to make things work

\\xa0

Time Stamped Show Notes:

• 02:05 \\u2013 Nathan introduces Mitchell to the show
• 03:08 \\u2013 The \\u201cJun\\u201d in Jun Group means truth
• 03:11 \\u2013 Mitchell founded his company believing that advertising can be transparent, honest and deliver tangible results
• 03:19 \\u2013 Jun Group\\u2019s job is to get millions of people to engage with videos and visit websites of the Fortune 500 brands
• 03:38 \\u2013 Nathan reads Jun Group\\u2019s website line
• 03:52 \\u2013 Mitchell gives an example of a spaghetti sauce brand that targets Hispanic mothers who are 35 and up, in the USA
  • 04:01 \\u2013 Jun Group will use the video of the brand to connect with their target market on their phone, tablets and computers
  • 04:16 \\u2013 Customers can opt-in in exchange for something like rewards points
• 04:38 \\u2013 Jun Group is an in-app solution
• 05:37 \\u2013 Jun Group only charges when someone chooses to engage and the client gets the value of what they\\u2019re paying for
• 06:06 \\u2013 When you don\\u2019t interrupt people, they tend to watch to the end
  • 06:08 \\u2013 Jun Group gets 90% of people to watch a 30-second ad until the very end
  • 06:13 \\u2013 3-5% of the viewers are visiting the brand\\u2019s website
• 06:50 \\u2013 From the publisher, the brand will appear in a mobile app
  • 07:29 \\u2013 Each app integration creates an interaction depending on the app user\\u2019s behavior
• 07:46 \\u2013 In web environment, app developers pay CPI
• 07:52 \\u2013 Jun Group never had a pop-up and they never interrupt
• 08:14 \\u2013 Jun Group has a sophisticated tech platform that works well with app developers
• 08:21 \\u2013 \\u201cApps are complex business\\u201d
• 08:41 \\u2013 Jun Group was bootstrapped until 2015
  • 08:47 \\u2013 Then they had a private equity deal with Howard Capital
  • 08:58 \\u2013 They\\u2019ve raised $28M
  • 09:09 \\u2013 They\\u2019ve decided to raise because they found the right partner
• 09:55 \\u2013 Growing an adtech business is quite unusual and requires hard work
• 10:02 \\u2013 Jun Group has brands, app publishers and consumers that they need to take care of
• 10:27 \\u2013 Jun Group is an adtech platform and not really an agency
• 10:30 \\u2013 Most adtech platforms lose money and want to grow fast
• 10:49 \\u2013 Jun Group has been growing slowly, but steadily and profitably
• 11:13 \\u2013 The revenue comes from commitments from brands and media buying platforms, some are per project and some are per annual commitment
• 12:00 \\u2013 Jun Group\\u2019s pricing model varies depending on what the ad is
• 12:34 \\u2013 A CPM (cost per thousand) in the industry usually costs $8 up
• 12:40 \\u2013 Jun Group charges cost per engagement which is more than the average CPM
• 13:22 \\u2013 Mitchell left Bates and started Jun Group at home
• 13:31 \\u2013 Mitchell didn\\u2019t really plan to be an entrepreneur
• 13:53 \\u2013 Mitchell get into the adtech industry with his partner when it was just starting
• 14:12 \\u2013 By 2008 and 2009, Jun Group was earning $1-2M in revenue
  • 15:08 \\u2013 Jun Group usually take a percentage from the sales they make
• 15:39 \\u2013 Most of the money goes back to the campaign
• 16:05 \\u2013 Jun Group had debt with WTI or Western Technology Investment that helped the company grow
  • 16:34 \\u2013 The debt was in millions
• 17:05 \\u2013 The media spent through Jun Group\\u2019s system
• 17:18 \\u2013 Jun Group is still cash flow positive
• 17:53 \\u2013 Jun Group really had a strategic partnership with their seed round
• 18:44 \\u2013 The Famous Five

\\xa0

3 Key Points:

1. Have the right partners who will not just provide the funds but help the company grow.
2. Adtech isn\\u2019t an easy industry with fast growth; it takes time and the right model to thrive in it.
3. It takes firm, hard discipline to make things work.

\\xa0

Resources Mentioned:

• Simplero \\u2013 The easiest way to launch your own membership course like the big influencers do but at 1/10th the cost.
• The Top Inbox \\u2013 The site Nathan uses to schedule emails to be sent later, set reminders in inbox, track opens, and follow-up with email sequences
• GetLatka - Database of all B2B SaaS companies who have been on my show including their revenue, CAC, churn, ARPU and more
• Klipfolio \\u2013 Track your business performance across all departments for FREE
• Hotjar \\u2013 Nathan uses Hotjar to track what you\\u2019re doing on this site. He gets a video of each user visit like where they clicked and scrolled to make the site a better experience
• Acuity Scheduling \\u2013 Nathan uses Acuity to schedule his podcast interviews and appointments
• Host Gator\\u2013 The site Nathan uses to buy his domain names and hosting for the cheapest price possible
• Audible\\u2013 Nathan uses Audible when he\\u2019s driving from Austin to San Antonio (1.5-hour drive) to listen to audio books

Show Notes provided by Mallard Creatives