AppLovin founder Adam Foroughi on why a billion-person gaming audience is the most underrated ad platform in the world:
"A couple years ago on our platform, we only served gaming ads. We used to take a user and say, game, game, game, game, game. If you weren't switching games, that's a pretty bad ad format to show you.
Now as we've gotten into product ads for ecommerce businesses and really as we go forward, it'll be for any kind of business in the world, the diversity will go up.
The hope we have is that we can get the local laundromat discovered by someone playing a game because we serve a really good ad to someone who needs their clothes washed.
If we get to that level of scale, this business is going to be much, much bigger than it is today."
This is the best founder you've never heard of. Adam Foroughi's company prints $5 billion in cash a year with just 400 people. When his stock price dropped by 92%, he borrowed money to buy back $6 billion in stock. That bet made the company more than $60 billion. The entire C-suite is just 4 people. To this day, Adam approves every hire. This episode has the highest insight-to-minute ratio of any conversation I've had so far.
Here’s our full conversation:
0:00 The $6B Buyback That Made $60B
2:15 Borrowing Money To Buy Back Stock At A Discount
5:02 Why VCs Passed On AppLovin In 2012
9:00 From App Discovery To Ad Platform
14:45 Beating Google's AdMob With Performance Marketing
19:30 No Board For Six Years
30:12 The China Deal That Almost Blew Up
37:45 The Convertible Note Pivot And KKR
46:30 Buying Gaming Studios To Get Data
51:45 Losing Trust With Game Developers
58:20 The 2022 Crash And How He Kept His Team
1:02:00 Building An Hyper Competent & Efficient Company
1:07:25 Why Every New Hire Needs His Approval
1:19:06 The Axon 2 Inflection Point
1:21:15 One Great Engineer Now Beats A Hundred
Includes paid partnerships.