The Newsletter Bubble: When’s it going to pop?

By: Ivanka Farrell

Even if newsletter growth slows down, they’re not going away. They’ve grown exponentially in the last two years, but the jury is still out on whether the explosion will settle any time soon. One thing is for certain: as offices open up and commuters start hitting the road again, the need for a quick way to catch up on what’s new — from a trusted source — will become increasingly relevant again.

Behind the scenes, the newsletter ad market will grow even more crowded, making it harder than ever to stand out. Read on to find out the five areas we bet will determine the winners and losers of the fight for newsletter domination.

Content

Winners: Publishers need to have the right mix of offerings to make sure their subscribers aren’t one and done. They need to strike the right balance of broad and frequent newsletter offerings with newsletters that are vertical-focused but show up in your inbox less frequently. Readers want to see a clear value proposition before they add yet another newsletter to their inbox.

Losers: Relying on what has always worked. Some of the most seasoned newsletter players are losing traction with emerging news start-ups that are rethinking what value a newsletter should provide.

Measurement

Winners: Broader measurement offerings that include message pull-through tracking, sentiment shift, and efficacy of the format.

Losers: Relying on vanity metrics, such as open rate and click-thru rate, that don’t paint the full picture of your message’s impact.

Audience

Winners: Identifying the newsletters that reach members of your target audience. Brands and causes should ask for detailed audience make-up as well as recent performance to ensure the best bang-for-buck.

Losers: Large subscription lists full of users who don’t open the newsletters regularly. Sky high reach means nothing if the audience isn’t engaging.

Ad Units

Winners: Not all sponsorships are equal. Be certain you’re getting what you pay for. High price tag newsletters should allow for a visual, a blurb, and subject line language at the very least. Publications should also be open to trying something new — take a chance on a custom sponsored newsletter series.

Losers: Standalone display banners. Part of the draw of newsletter sponsorships are the intimate environment that you’re able to reach your audience in and the ability to natively integrate into their routine. By only offering standalone display banners, publishers are cutting off the ability to do that.

New Entrants

Winners: Slow and steady wins the race. Before diving in and sponsoring every new publication, wait until they have a bank of performance benchmarks and audience info. And sometimes, take measured bets! Publications like Puck are rethinking newsletter ad formats and creating a trusted relationship with their readers due to their member model.

Losers: With the market as crowded as it is, not every publication is going to last and not every publication is going to come out with a bang. Publications that aren’t investing in relationships or seeking innovative collaborations won’t make it when email lists are light and data is scarce.

We don’t expect the pace of new entrants to the newsletter market to slow down, but there is a real question of efficacy and burnout in reaching and engaging readers. When the market is so crowded, you need to both make sure you’re present in multiple publications and mix up your message and creative so your audience doesn’t become blind to your ads. So just like the market, more is more for advertisers.