Why More Brands Should Bet on Substack
Key Takeaways
More than one-third (36%) of U.S. adults read digital newsletters covering a wide range of topics, from news and politics to travel and self-help.
Substack is gaining ground with independent journalists and content creators seeking to diversify their platforms, and some brands are also jumping into the mix. Substack users are likely to follow companies and brands on social media, so may easily make the jump to add brand newsletters to their inbox.
Most (59%) of newsletter readers aren’t paying for their subscriptions, but consumers are willing to pay when the content is worth it — as in, sufficiently differentiated from what’s available for free online.
Did you by chance open this memo via Morning Consult’s newsletter? Maybe it was one of many newsletters in your inbox. If so, you’re not alone. More than a third (36%) of U.S. adults say they read digital newsletters. Among them, 30% say they subscribe to at least 3 newsletters.
Substack in particular has emerged as a platform for journalists to publish independently and for content creators to diversify their platforms, leaving them less vulnerable to the whims of Meta’s algorithms or the will-they-or-won’t-they TikTok ban. Brands are also getting in on the action: Rare Beauty uses the platform for deeper customer engagement and to tell long-form stories. Newsletter readers are a highly engaged audience, so whether brands are advertising in newsletters or starting their own, it’s a channel worth devoting attention to.
Newsletter readership isn’t just about the news
News is the most frequently read newsletter topic (with politics not far behind). When asked to name their favorite newsletter, most readers couldn’t name one. Those that did primarily mentioned news media companies, like the New York Times, CNN and Morning Brew.
News, health and politics-focused newsletters are read most frequently
Beyond the news, readers are devouring content about entertainment, food and beverage, shopping, and travel. Whatever your industry, there’s a newsletter on the topic. Though, expect email inboxes to be increasingly inundated with newsletters. Most digital newsletter readers receive newsletters at least a few times a week, so keeping up with the volume can be a challenge.
Substack offers a platform for brands to deepen engagement with their most loyal customers
Substack isn’t the only newsletter platform worth paying attention to, but it is in the spotlight right now. When asked which online newsletter platforms they use, 22% of readers named Substack, falling just behind MailChimp and on par with Medium.
Brands getting into Substack are on to something. People who use Substack at least weekly show a high propensity to follow companies and brands on social media, so they’re likely to carry that following of their favorite brands over to the newsletter platform.
Weekly Substack users often follow companies and brands on social media
Substack offers a good opportunity for brands to connect with their most loyal customers, assuming those customers fit the audience profile. Morning Consult Audience data shows that Substack’s weekly users tend to be younger, overindexing among Gen Zers and millennials, as well as men.
They use all social platforms Morning Consult tracks at higher rates than the general population, listen to podcasts at higher rates, and also consume more news content across all networks. In short, this is an extremely online audience of voracious content consumers.
Premium newsletters can command a subscription cost, but a majority of readers choose free content
All those newsletters come with a cost, though newsletter readers mostly read for free: 59% of readers said they don’t pay for any of the newsletters they read. Among those who do pay, a plurality (36%) just pay for one. Premium newsletters can come with a subscription to a digital news outlet, or just be paid to a journalist directly via their newsletter platform. Many content creators charge for their newsletters, or at least a portion of them, even though similar content might be available on their websites or social media feeds for free. Some choose to keep more personal thoughts and information gated behind a paywall for their most loyal fans, where internet trolls are unlikely to gain access.
Most readers opt for free newsletters
Readers who do pay for newsletters say they do so because the content is worth it (40%), they get exclusive access to additional content (33%) and they get fewer ads (30%). So, while newsletters can be a high value advertising opportunity, the most ardent readers who pay for these subscriptions may see fewer ads.
Newsletters offer space to build customer relationships through storytelling
In an era with infinite, often cheaper options available to shoppers, differentiating from the pack takes more than a great ad campaign. Digital newsletters allow more opportunities for storytelling that can build and retain loyalty with a brand’s fans, and aren’t dependent on social media algorithms. It’s imperative that these newsletters have a distinct voice from promotional emails, otherwise it’s just more inbox volume.
