Podcast Summary: The Money Mondays Episode: David Steinberg’s Multi-Billion Dollar Mission for ZETA Global 🌎 E89
Release Date: September 30, 2024
Host: Dan Fleyshman

Introduction

In Episode 89 of "The Money Mondays," host Dan Fleyshman welcomes David Steinberg, the visionary behind Zeta Global, to discuss his multi-billion dollar mission to revolutionize marketing through artificial intelligence (AI). Recorded live at the Zeta Global Live event, this episode offers listeners an in-depth look into Steinberg's entrepreneurial journey, Zeta Global's innovative strategies, investment philosophies, and philanthropic endeavors.

Guest Introduction: David Steinberg

Dan Fleyshman introduces David Steinberg as a serial entrepreneur and the driving force behind Zeta Global. Steinberg boasts an impressive track record, having founded seven companies, taken one public, and serving as chairman of another. With over 43 angel investments and speaking engagements at more than 250 business events, Steinberg brings a wealth of experience and insight to the conversation.

David Steinberg [00:24]: "It's very exciting. Yes, we have over 1400 people in person, over 15,000 online. Although I think it's more to do with Shaq and Simone and Milken and Deepak than me."

Understanding Zeta Global

Steinberg elaborates on Zeta Global's core mission as a marketing automation platform powered by data and AI. The platform aims to help large enterprises create, maintain, and monetize customers more efficiently and cost-effectively.

David Steinberg [02:40]: "Zeta Global is a marketing automation platform that uses data and artificial intelligence to help very large enterprises create, maintain and monetize customers at a substantially lower cost by using our software and our data than they could without it."

Steinberg highlights the dual benefits of AI: significant cost savings and robust revenue growth, with clients typically witnessing a return of five to seven dollars for every marketing dollar invested through Zeta.

David Steinberg [03:32]: "We're able to help large enterprises massively lower their cost to create, maintain customers, while simultaneously, for every dollar that is invested from a marketing perspective using the Zeta marketing platform, we return an average of five to seven dollars."

The Decision to Go Public

Steinberg discusses the strategic decision to take Zeta Global public, addressing the challenges of brand recognition that led to this move.

David Steinberg [04:25]: "We would walk into RFPs, we would walk into processes, and nobody would know who we were. So we embarked on this sort of journey to go from Zeta who to why Zeta."

He explains that going public not only enhanced Zeta's credibility but also facilitated broader brand awareness, making Zeta an indispensable part of enterprise tech stacks.

David Steinberg [04:38]: "We thought going from being a larger private company to a public company was a really important component of that maturity."

Despite the complexities and regulatory burdens of being a public company, Steinberg emphasizes the exponential return on investment from increased brand visibility and client acquisition.

David Steinberg [07:16]: "We close one deal out of this, it can be 10 times what we spent on the entire event."

Building the Brand Through Live Events

Steinberg provides insights into the effort behind organizing large-scale live events, such as renting the USS Intrepid aircraft carrier, to foster brand prestige and attract top-tier clients.

David Steinberg [07:47]: "We rented out the Intrepid aircraft carrier because we thought it would be cool."

He underscores the importance of creating unique experiences for decision-makers, which in turn amplifies brand awareness and drives client interest.

David Steinberg [07:51]: "Provide experiences they wouldn't normally get... create brand awareness."

The success of these events is evident, with Zeta Global experiencing unprecedented pipeline growth and record-breaking RFPs.

David Steinberg [08:45]: "We're blowing out of this place. We're already talking about we're going to have to double the size again for next year."

Investment Philosophy and Strategies

Transitioning to his role as an investor, Steinberg shares his investment strategies, emphasizing simplicity and problem-solving.

David Steinberg [09:24]: "You should listen to Warren Buffett and buy as much of the S&P 500 ETF as you possibly can. And every time you make more money, buy more of it."

Steinberg advises focusing on companies that address real-world problems, a principle he believes is often overlooked by investors who chase popularity rather than substance.

David Steinberg [10:10]: "Always look at companies that are solving problems. If you look for companies that are innovative and really are solving a problem, they're going to be the winners in the end."

His investment portfolio is diversified across various funds, including early-stage fund of funds and large public fund managers, ensuring consistent returns.

David Steinberg [11:10]: "We have a sizable series of trusts that roll to the foundation. Some they roll over, you know, 10, 15, 20 years."

Real Estate Investments

While Steinberg admits to not being deeply involved in individual real estate assets, he highlights his preference for investing in real estate-focused funds.

David Steinberg [12:01]: "I love real estate. But you'd have to talk to my buddy Tariq El Moussa standing right over there."

He emphasizes the significance of real estate as an asset class and his strategic investments in large real estate and infrastructure funds.

David Steinberg [13:10]: "I'm a humongous fan of real estate as an asset class. Location, location, location."

Philanthropy and Charity Initiatives

Steinberg passionately discusses his philanthropic efforts through the David and Kristen Steinberg Foundation, focusing on disadvantaged youth and community support.

David Steinberg [14:17]: "Michael Blackson has started a school in Africa that my foundation built. The entire computer center, donated every component of it because I believe if we don't help kids who are at a disadvantage with technology, they're going to raise the next generation to be disadvantaged as well."

Zeta Cares, the company's charitable ecosystem, not only provides financial donations but also engages in hands-on community service, fostering a culture of giving back.

David Steinberg [14:21]: "We don't just donate meaningful money, we donate large amounts of time. We do multiple days a year where we go pack lunches or we help with food drives or we're fixing up parks."

When asked about his long-term charitable commitments, Steinberg reveals his dedication, typically allocating 30% of his adjusted gross income to his foundation annually.

David Steinberg [16:06]: "I put 30% of my total adjusted gross income on average, into my foundation every year."

The Future of Artificial Intelligence

Concluding the discussion, Steinberg delves into the transformative potential of AI, likening its impact to historical technological advancements like the printing press and the internet.

David Steinberg [17:17]: "Artificial intelligence is going to be the next wave of that, where machines can help make decisions and do mundane tasks that today humans are required to do. But they can do them better, faster, and cheaper."

He envisions AI deeply embedding into every facet of human life, fundamentally altering how society functions and driving unprecedented efficiencies and innovations.

David Steinberg [17:09]: "We firmly believe that it's the next wave of technology."

Conclusion

Dan Fleyshman wraps up the episode by encouraging listeners to connect with David Steinberg and explore Zeta Global's offerings. The episode not only highlights Steinberg's entrepreneurial and investment acumen but also underscores his commitment to leveraging technology for societal good.

Dan Fleyshman [18:40]: "David, I love your show, and I think you're the best."

Listeners are left with a comprehensive understanding of how Steinberg and Zeta Global are poised to shape the future of marketing through AI, while also making significant strides in philanthropy and investment.

Key Takeaways:

• Zeta Global’s AI-Driven Marketing: Revolutionizing customer acquisition and retention with substantial ROI.
• Strategic Public Offering: Enhancing brand credibility and visibility in the competitive market.
• Unique Brand Building: Utilizing large-scale events and star-studded guest appearances to attract and retain clients.
• Investment Philosophy: Focused on simplicity, problem-solving, and diversification.
• Philanthropic Commitment: Significant contributions to education and community support through dedicated foundations.
• AI’s Transformative Potential: Positioned as the next major technological wave, reshaping industries and societal functions.

For more insights and updates, follow David Steinberg on Instagram and explore Zeta Global at zetaglobal.com.