Eric Franchi and Mike Cassidy discuss their journey of building Undertone from an agency to a successful ad network, reaching $100M in revenue. They share insights on key hires, GTM strategies, and scaling the business. The podcast touches on their childhood influences, the importance of agency partnerships, adapting in the evolving ad industry, navigating competition, and the challenges of hiring and growth in building a successful business.
Transition from traditional ad networks to curated solutions for long-term growth.
Importance of differentiation strategies and market positioning in a competitive ad tech landscape.
Significance of strategic hiring practices and building an effective management team for company expansion.
Deep dives
Evolution of Ad Formats and Industry Trends
The podcast discusses the evolution of advertising formats in the industry, highlighting the shift from traditional ad networks to more curated solutions. It delves into the challenges faced with the rise of ad blockers embedded in browsers and the need for innovation in response. The focus on premium inventory, differentiation strategies, and launching new ad formats to adapt to industry changes sets the foundation for long-term growth.
Competitive Landscape and Strategic Positioning
The episode explores the dynamic competitive landscape of the ad tech industry, mentioning specific competitors such as Specific Media and Collected Media. It emphasizes the importance of differentiation strategies and market positioning to stand out, highlighting the value of targeting Fortune 500 brands and agencies. The proactive approach towards education, content marketing, and thought leadership to navigate through a crowded market space is cited as a key aspect of success.
Business Expansion and Professionalization
The podcast touches on the stages of business growth, from agency and advertising network origins to achieving scale through a differentiated killer product. It discusses the importance of transitioning into a technology-driven company, hiring key executives, and enhancing marketing and product functions to accommodate growth. The shift from insourcing critical functions to trusting strategic hires and private equity investment signals a phase of expansion and professionalization.
Transition from Entrepreneur to Manager in High-Growth Company
Navigating the evolution from operating instinctually as entrepreneurs to becoming managers and executives in a high-growth private equity-backed company presented challenges. The struggle of defining roles post-hiring great talent, along with redefining purposes as founders and executives, highlighted the lack of guidance in literature. Embracing areas where they excelled, such as commercial leadership, strategy, and culture, became crucial for effective orientation.
Importance of Strategic Hiring and Management Team Development
Reflecting on the shift towards strategic hiring practices and developing an effective management team, the podcast emphasized the transformational impact of aligning with top-notch professionals. Learning from early mistakes in hiring processes and valuing external expertise, the speakers highlighted the significance of meticulous preparation, behavioral-style interviews, and investing in executive recruiters. Prioritizing targeted relationships with potential strategic acquirers and avoiding impulsive mergers underscored the need for thoughtful business decisions amidst growth and expansion considerations.
Joe interviews Eric Franchi and Mike Cassidy to unearth the story of Undertone, the ad network company they sold to Perion for $180 million.
How did Eric and Mike get Undertone to about $3M in revenue as an agency? Why did they switch to the ad network model? And how did they scale it from there to $100M in revenue, including key hires, GTM, and taking on private equity?
Check out this deep dive to hear two founders' take on the steps required to produce a massively successful adtech outcome.
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