Should you invest in paid ads for newsletter?

When you start a newsletter, one of the biggest challenges you face is getting people to actually read it.

You pour your heart and soul into crafting the content, but the audience doesn’t magically appear.

So, you consider all possible growth strategies, including paid advertising.

But is this route worth it for your newsletter?

P.S. If you are using paid ads, we have something for you.

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When we started newsletters in June last year, we solely relied on organic growth and referrals through friends and family.

Growth was slow but the reviews were good, so we wanted to scale.

That's when I came across newsletter ads on Facebook.

This particular newsletter claimed to have 15K newsletters - that was the dream for us!

So, I decided to invest in paid growth.

Now we have 65K subscribers for Marketing Monk.

Who should invest in paid ads?

Paid ads aren’t for everyone. Before jumping into it, you need to check if your newsletter fits the criteria for successful paid campaigns. Here’s a quick checklist:

1. Clear Value Proposition:
   Can you explain in one sentence why someone should subscribe to your newsletter? If not, work on refining your niche and messaging first.

2. Proven Content Quality:
   If your content isn’t resonating with the audience you already have, adding paid subscribers won’t solve the problem. Ensure your existing readers are engaged.

3. Defined Target Audience:
   Paid ads perform best when targeting a specific group. Do you know who your ideal readers are? For example, Emma’s newsletter targets entrepreneurs aged 25-35 who are interested in growth hacking.

4. Budget Availability:
   Most importantly, paid ads require consistent investment. Do you have the funds to experiment without draining your savings?

If you checked all these boxes, you might be ready to dip your toes into paid ads.

Organic v/s Paid Growth:

Organic Growth

• Pros:

  • Free or low-cost.

  • Builds a loyal audience through trust and authenticity.

  • More sustainable in the long run.

• Cons:

  • Time-intensive.

  • Growth can plateau without consistent effort.

Paid Growth

• Pros:

  • Faster subscriber acquisition.

  • Enables you to reach audiences beyond your immediate network.

  • Highly scalable.

• Cons:

  • Costs add up quickly.

  • Results are not guaranteed.

  • Can attract less-engaged readers if not targeted well.

For us, organic growth helped to build a solid foundation, but paid ads offered the promise of accelerated results.

The next step is breaking down the costs.

Breaking down the costs:

Costs vary depending on the platform, audience targeting, and your ad’s performance.

1. Cost per Click (CPC): 
   The amount you pay when someone clicks on your ad. For newsletters, CPC can range from $0.50 to $2.00, depending on the niche.

2. Cost per Acquisition (CPA): 
   The cost to acquire one new subscriber. If your landing page converts at 20%, and your CPC is $1.00, your CPA would be $5.00 (5 clicks per subscription).

3. Ad Budget: 
   A good starting point is $500-$1,000 per month to test the waters. You can split this across platforms as well to experiment.

4. Additional Expenses: 

   Factor in costs for creating ad graphics, hiring a copywriter, or using analytics tools.

Pro Tip: If you want to save on additional expenses, check this.

Risks and Rewards:

Though they have had a great ROI for us, it is important to keep in mind the risks and rewards with running paid ads.

Risks:

1. High Costs Without ROI: 
   Poorly targeted ads can drain your budget without yielding subscribers.

2. Low Engagement: 
   Paid subscribers may not be as invested as organic ones if the interests are not aligned, leading to lower open and click-through rates.

3. Ad Fatigue: 
   Repeated exposure to the same ad can reduce its effectiveness over time.

Rewards:

1. Rapid Growth: 
   Gain hundreds or even thousands of subscribers in weeks instead of months.

2. Revenue Opportunities: 
   Larger subscriber numbers attract sponsors and partnerships.

3. Expanded Reach: 
   Paid ads introduce your newsletter to audiences you couldn’t reach organically.

To mitigate this, carefully monitor your campaigns, tweaking them weekly based on performance metrics.

When to scale up?

Paid advertising is not a "set it and forget it" strategy. You should only scale up once you’ve validated your campaigns. Here’s how:

1. Track Key Metrics: 
   Monitor metrics like CPA, conversion rates, and subscriber retention.

2. A/B Test: 
   Experiment with different ad creatives, copy, and platforms to see what works best.

3. Analyze Engagement: 
   Ensure that paid subscribers are engaging with your content. High churn rates indicate poor targeting.

4. Calculate ROI: 
   If every subscriber costs $5, and your newsletter generates $10 per subscriber through sponsorships or product sales, scaling up makes financial sense.

The decision to invest in paid ads boils down to your goals and resources.

If you’re looking to grow quickly and have the budget to experiment, paid ads can be a powerful tool. However, they’re not a magic bullet.

Your content needs to be strong enough to retain the audience you attract.

Start small, track everything, and let the results guide you.

P.S. If you are stuck with your newsletter growth at any point, reply to this and I can help you out! 📈