798: Mobile Ad Tech Passes $100m in Revenues

Published: Sept. 30, 2017, 9 a.m.

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Harry Kargman. He\\u2019s a passionate entrepreneur who bootstrapped Kargo over 17 years into the leading mobile brand advertising marketplace. He\\u2019s obsessed with art, design and New York and has been helping steward the ad council in a partnership for New York.

Famous Five:

  • Favorite Book? \\u2013 Only the Paranoid Survive
  • What CEO do you follow? \\u2013 Elon Musk
  • Favorite online tool? \\u2014 Skype, Slack and other product tools
  • How many hours of sleep do you get?\\u2014 6
  • If you could let your 20-year old self, know one thing, what would it be? \\u2013 \\u201cIt\\u2019s going to be okay\\u201d

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Time Stamped Show Notes:

  • 02:08 \\u2013 Nathan introduces Harry to the show
  • 02:41 \\u2013 Kargo is the largest brand advertising company for mobile
    • 02:45 \\u2013 Their focus is on high end brands that are highly creative
  • 03:16 \\u2013 Kargo is a technology company
    • 03:43 \\u2013 They built a technology that will make an ad on mobile a high end brand experience
    • 04:12 \\u2013 The ad renders perfectly on a mobile page
  • 05:52 \\u2013 Kargo works with around 98% of the major media companies and publishers
  • 06:21 \\u2013 Most of Kargo\\u2019s customers are Fortune 1000 companies
  • 07:13 \\u2013 Kargo charges as a technology play for publishers, like a SaaS model
    • 07:28 \\u2013 It is integrated into the media that runs on the platform
  • 07:50 \\u2013 Kargo also takes a percentage of media that runs through the platform
  • 08:21 \\u2013 Kargo is focused on quality as they\\u2019ve turned down a lot of publishers
    • 08:41 \\u2013 Kargo only has the best quality for advertisers
  • 09:00 \\u2013 The average cut Kargo is taking
    • 09:25 \\u2013 Harry shares how they\\u2019re taking the cut with the kind of service that they provide
    • 10:29 \\u2013 The vision that Kargo has is that they\\u2019re on equal partnerships
  • 11:14 \\u2013 In 2015, Kargo passed $100M in annual revenue
    • 11:18 \\u2013 The growth, year over year, is around 100%
  • 11:56 \\u2013 2017 is a big year for Kargo where they\\u2019re building a technology that is new to the market
    • 12:23 \\u2013 Kargo has an AdLab that they try to bring to advertisers
  • 13:11 \\u2013 Kargo is 15-20% SaaS and 85% is media
  • 13:22 \\u2013 The goal for next year
  • 13:58 \\u2013 Total team size is 270
  • 14:25 \\u2013 Kargo will have a partnership with NBC in 2018
  • 15:07 \\u2013 Kargo is completely bootstrapped
  • 15:32 \\u2013 Before pivoting, Kargo was trying to build software and services for operators
    • 15:38 \\u2013 However, operators wanted to take 18 months to 2 years for testing which is impossible for startups
  • 16:18 \\u2013 Kargo just got into the water, expecting major media companies to sell their ads and media properties
  • 17:36 \\u2013 The Famous Five
  • 19:12 \\u2013 Harry\\u2019s wife, Jill Kargman of Odd Mom Out will be on tour

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3 Key Points:

  1. Develop a product that will make Fortune 1000 companies need you.
  2. Regardless of the size of the deal, maintain equal partnership with your partners.
  3. Stay bootstrapped as long as you can and as long as you want.

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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

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