As we have seen, newsletters go on to garner higher rates of RoI.
For a brand / institution, why are newsletters so much more effective than many other channels?
Substack, perhaps the world’s most used newsletter platform, has seen its subscriptions surge multifold within a mere three-year period. In July 2018, its ‘paid subscribers’ totaled 11000. Forty-three months later, by February 2022, it increased to 500,000-a whopping 4445% increase in PAID subscriptions.
Understanding the importance of adapting a historic tradition – the humble newsletter – to a digital platform with a low cost model allowing everyone to take part to their hearts’ content and optimizing it for email marketing with ease (“distribution ready in just one click”) Substack significantly propelled an already growing global newsletter gaia to new levels. Working in favor of Substack is the heavy digital usage / adoption thanks to the COVID crisis and resulting aversion to paper handling by readers. Perhaps the most compelling reason for Substack’s growth could be that the expectation among its users of much higher RoI possibility than from other newsletter options since Substack was a well-organized ‘platform in one’ for any newsletter creation need.
The Substack Economy was effectively set in motion with a pre-seed funding in January 2018. By 2021 March, Substack raised a cool US $82.4 million from four funding rounds.
Substack revived the ‘usability’ call of digital newsletters to a significant extent.
Newsletters – digital or otherwise- have a way of connecting with local audiences in comparison to macro level communication channels. Whatever the coverage rates they have (high or low), the subscribers to them often stay loyal. The reason for this is their ability to connect with local audiences and the ability to address issues of local audience, who turn to newsletters (they subscribe) since they trust them.
Richard Edelman (CEO, Edelman), writing on local content in “The Devolution of Local” says:
“For brands and corporations, it should matter that local news is synonymous with trust. The choice cannot come down simply to cost per thousand; it is for business a matter of preserving a civil society..”
He also adds:
“Business has an interest in an informed populace able to make educated decisions. Here are four ways that business can help local journalism:
(1) Axios started Axios Local a series of local newsletters. It acquired the Charlotte Agenda, then added Tampa Bay, Des Moines, Denver and the Twin Cities. Companies can do sponsored programs with the Axios team; this has worked well for Edelman on our Trust Barometer reports.
(2) Substack Local is trying to build local news publications through their subscription model. It enables newsletters by email; companies can buy subscriptions.”
Newsletters therefore can act as the closest communication channel to local audiences, keeping them engaged with the Brand / Brand promise. The increase / fall of subscription to them can therefore be an indirect indicator of the acceptance / rejection of the brand.
Inspired by Substack, today, several other major online publishing platforms are ‘going newsletter.’
Twitter’s acquisition of @Revue newsletter platform and integration and now being promoted as a paid newsletter, no less than Facebook itself launching “Bulletin” for independent writers–a tool similar to Substack.
It is clear that newsletters are much more than mere RoI; they are powerful, easy and low cost tools of trust, connecting key audiences with the institution / brand.
In today’s gig-cum-freemium economy, that’s such a bargain that one cannot ignore.
