Optimizing cost per acquisition through broad ad targeting on meta platforms for newsletter growth.
Understanding Facebook's algorithm changes for effective ad targeting and return on ad spend for media businesses.
Utilizing revenue streams like sponsorships and courses for newsletter monetization and tracking ROI with tools like ConvertKit.
Deep dives
Maximizing Subscriber Value through Paid Acquisition
The podcast episode delves into the strategic process of acquiring subscribers through paid advertising for newsletters like Creator Science. By targeting a broad audience on meta platforms with broad ad placements, businesses can optimize cost per acquisition while leveraging the current ad landscape's advantages. The focus shifts towards evaluating payback periods, where calculating subscriber revenue and considering monetization opportunities from courses, products, or services becomes key. Additionally, leveraging tools like Sparkloop Upscribe for co-registrations and recommendations opens up opportunities to break even or profit on day one of acquiring a subscriber.
The discussion emphasizes the evolving dynamics of Facebook advertising post ATT implementation. Facebook's algorithm adjustment encourages broader ad targeting, reducing cost per 1,000 impressions (CPM) and simplifying the ad creation process. While ad costs have increased in some sectors, Media Businesses and newsletters benefit from stable costs due to the ad's significant effectiveness despite reduced retargeting capabilities. Understanding the nuances of advertising for specific business types, such as media companies, allows for better ad performance and return on ad spend (ROAS).
Monetization Models and ROI Calculation for Newsletters
The episode highlights strategies for determining return on investment (ROI) and maximizing revenue streams, especially in newsletter monetization. From sponsorships to premium subscriptions and information products like courses, newsletters offer various revenue avenues. Calculating subscriber revenue per month against ad revenue allows creators like Creator Science to assess payback periods and subscriber value. Exploring tools like ConvertKit for tracking subscriber conversions and ROI metrics aids in refining marketing strategies and enhancing financial outcomes.
Growing Newsletters through Partnerships
Newsletters are growing through partnerships, leveraging recommendation engines to increase subscriber numbers. By collaborating with other newsletters, creators can share audiences and reduce the cost of acquisition effectively. This strategy, inspired by platforms like Substack and ConvertKit, focuses on recommending similar newsletters to subscribers, driving growth through synergistic content partnerships.
Optimizing Subscriber Quality and Ad Revenue
Maintaining subscriber quality and ad revenue is crucial in the evolving newsletter landscape. Limiting recommended newsletters to prevent subscriber overload can lead to higher open rates and engagement. While current CPM rates are favorable, future trends suggest a potential decrease in subscriber value. Strategies to optimize ad creative, such as using authentic visuals and engaging videos, play a key role in sustaining ad effectiveness and offsetting growth costs.
Matt McGarry is the owner of Growletter, an agency helping some of the biggest newsletters in the world grow. He's helped The Hustle, Codie Sanchez, The Milk Road, and others attract millions of email subscribers.
He also studies the world’s best newsletters, content creators, and media companies and shares their strategies and tactics through his newsletter, called The Newsletter Operator.
He is THE guy to know if you’re focused on building a newsletter and are interested in growing through paid acquisition.