Newsletter advertising has become a powerful tool for monetizing content. 

The recent developments in the beehiiv ad network, particularly the introduction of CPM-based advertising deals, signify a shift towards offering newsletter publishers greater monetization opportunities. 

Jake Schonberger, beehiiv's head of brand partnerships, EJ White, Head of Growth at beehiiv, and our special guest Chris Devona, Senior Marketing Manager at HubSpot dive into the mechanics of beehiiv’s Ad Network.

They discuss the benefits for both publishers and advertisers plus best practices for maximizing advertising effectiveness.

beehiiv's Ad Network allows advertisers to target niche or broad audiences through 20,000 newsletters.

The Ad Network is designed to connect advertisers with a diverse audience across these newsletters, facilitating targeted advertising campaigns. 

Advertisers can reach niche markets effectively, while publishers can monetize content without significant effort. 

Our platform offers ad placements that blend seamlessly into newsletter content, enhancing reader engagement and ensuring that ads are perceived as part of the overall narrative rather than intrusive interruptions.

Podcast marketing was a strategy that HubSpot utilized to get more eyes on its brand before it transitioned into marketing through newsletters. 

Usually, they reached out to creators and offered a retainer deal to fit ads into their podcast, until this year when they started growing The Hustle Newsletter, they did this by promoting through other newsletters.

This was how they got into newsletter ads. 

HubSpot has more of a long-term approach to newsletter Ads, as cited by Chris Devona, Senior Marketing Manager at HubSpot. 

They use a lot of free offers and resources to get subscribers into the HubSpot ecosystem and eventually start selling to them. 

What Hubspot advertises changes depending on the newsletter it's running ads on

They tend to pick the best offer that will fit the audience of the publisher.

Hubspot has found a sweet spot for newsletter ad frequency, as they keep it to a minimum of 3 weeks.

Anything less and diminishing returns are bound to be involved.

The newly introduced CPM (cost per mille) model pays publishers based on unique opens, benefiting those with high engagement but lower click-through rates.

Previously, CPC (cost per click) was the primary model, focusing on clicks generated through ads, which may not have suited all publishers.

The flexibility of having both CPM and CPC options allows publishers to choose the most beneficial model based on their audience's behavior and engagement patterns.

From an advertiser's perspective, newsletters present a unique opportunity to engage with an audience that is actively seeking content. 

Unlike social media platforms where users may be mindlessly scrolling, newsletter readers are more focused and receptive. 

This context of trust and engagement significantly increases the effectiveness of ads placed within newsletters. 

Advertisers benefit from detailed analytics, allowing them to track campaign performance, clicks, and impressions, which helps in refining their strategies for better ROI.

Ad performance is measured by tracking clicks and opens for 72 hours after sending, easy peasy right? But that’s not all.

Payments are issued on the 20th of the following month! With some ad limitations to enhance user experience.

Advertisers can also work directly with the Ad Network without needing separate accounts, allowing dual roles as publishers.

For publishers, monetizing newsletters through the beehiiv Ad Network can be realized through several approaches. 

Publishers can opt for direct ad sales, or even promote their products and services. 

beehiiv ensures that publishers receive at least four ad opportunities each month, with many earning substantial income through consistent engagement with advertisers. 

Most advertisers prefer working with larger publishers for efficiency in spending and reach. But with beehiiv’s Ad Network, we aggregate multiple smaller newsletters to provide a more attractive option for advertisers. So even smaller publishers can benefit.

Another thing to note is currently, publishers cannot edit ad copy, but variations are provided, with future solutions in development.

Newsletters can also include direct ads from external advertisers, not limited only to the Ad Network.

To maximize the effectiveness of newsletter advertising, publishers should adhere to several best practices. 

First, they should maintain updated tags and descriptions that accurately reflect their audience and content type. This ensures better alignment with relevant advertisers.

Additionally, maintaining a balanced ad-to-content ratio is crucial; typically, one primary ad and one secondary ad per newsletter are recommended to avoid overwhelming readers. 

Publishers should also focus on embedding ads that resonate with their content style to maintain reader trust and interest.

Finally, engaging with advertisers through tailored content can enhance the reader's experience, further building trust and increasing the likelihood of conversions.

beehiiv’s Ad Network is rapidly expanding, with current monthly payouts to publishers reaching $500,000. Upcoming products will focus on measurement and optimization to enhance ad targeting and campaign effectiveness.

Our aim with these enhancements is to benefit advertisers and publishers leveraging our platform, as these improvements lead to better performance, encouraging advertisers to invest more.

Upcoming self-serve tools will allow publishers to monetize directly, including selling their ads and courses directly through beehiiv. Keep your eye out for them.

Newsletter advertising continues to evolve, and platforms like beehiiv are setting the stage for innovative monetization strategies. 

As more advertisers and publishers effectively leverage the capabilities of the ad network, both can achieve substantial benefits, bringing about a sustainable ecosystem that prioritizes quality content and engaged audiences.

Getting Started 👇
00:00 - Introduction
00:51 - What we'll be covering
01:33 - The beehiiv Ad Network

How Newsletter Advertising Works for Advertisers 📈
02:35 - An advertiser's dream: Trust & Context
04:34 - Measuring success with the ad network
05:51 - Understanding an advertiser's perspective

How Hubspot is using beehiiv's Ad Network 💸
07:49 - Introducing Hubspot's Senior Marketing Manager
08:28 - How HubSpot started using newsletter ads
09:05 - Why newsletter ads are very effective
10:21 - The difference between newsletter and podcast ads
13:23 - Any strategies for deploying newsletter ads based on frequency?
15:43 - What is HubSpot advertising with newsletter ads?

How to Monetize Your Newsletter with the beehiiv Ad Network 💰
17:40 - Introduction
18:22 - Always opt-in, no lock-in ad opportunities
19:43 - Receiving an ad opportunity
20:45 - Including an ad in your newsletter
21:37 - Ad reporting and getting paid
22:25 - Ad creative types & options
24:36 - Best practices for newsletter ads
26:49 - Introducing CPM ad deals
28:23 - FAQs and References

30:03 - Can you be an advertiser and publisher with beehiiv?
30:43 - How can I attract a wider variety of advertisers?
31:44 - Can you bring in your own ads that are not a part of the beehiiv Ad Network?
32:20 - How do you recommend users bring in their own advertisers?
33:41 - What's coming soon to the beehiiv Ad Network?
36:09 - Is display advertising coming to beehiiv?
36:47 - What's the appropriate list size to start advertising in your newsletter?
38:40 - Closing remarks