Why newsletter referrals are the future of targeted advertising

Why newsletter referrals are the future of targeted advertising

Have you ever considered sponsoring newsletters? Otherwise, you risk missing out on valuable marketing opportunities.

Although targeted advertising has been around since at least 1995, it has made significant strides in recent years. Through web cookies, marketers can access more than just age and geography. They can also see behavioral data such as which products a user has purchased or which websites they have visited.

However, many consumers have expressed frustration with targeted ads and have taken steps to avoid them. According to the Insider Intelligence eMarketer, 1 in 4 consumers used ad blockers in 2021. Similarly, a Security.org 2021 report said 41% of U.S. adults use virtual private networks (VPNs) for work and play. As privacy tools gain in popularity, advertisers are struggling to reach their target audiences.

It’s there that newsletter referrals Come in.

Newsletter sponsorships are the savvy marketer’s secret to messages tailored to specific audiences without violating data confidentiality or appear as “too focused”.

What are newsletter referrals?

A newsletter sponsorship is a paid advertisement placed in an email newsletter. Compared to other advertising channels such as websites or social media platforms, these placements tend to reach a more engaged audience while facing a fraction of the competition.

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Why newsletter referrals are invading the advertising industry

Newsletter referrals are gaining traction across a wide range of businesses, from small ecommerce businesses to billion dollar tech companies. Brands that have embraced this advertising medium find it indispensable due to a few key trends and benefits.

Over 40 years later and newsletters continue to grow

Email newsletters have been around for almost as long as email itself. The first newsletter, Email and messaging systems, operated from 1977 to 2001. Since then, newsletters have continued to be a powerful educational and marketing tool.

Over the past two years, newsletters have seen a surge in popularity. According to a July 2020 LiveIntent survey, 53% of publishers have seen an increase in engagement with their email newsletters after the start of the Covid-19 pandemic.

It’s not just a lockdown fad – if the business decisions of industry leaders mean anything, newsletters are likely to experience continued growth in the future. In late 2020, Insider Inc. completed the acquisition of Morning Brew, valuing the newsletter at around $ 75 million. Shortly thereafter, in February 2021, The Hustle announced its acquisition by marketing and sales platform HubSpot.

The unique advantages of email newsletters, including direct reach and personal messaging, have made them a top choice for marketers.

Customers take privacy more and more seriously

While many advertising channels allow marketers to serve more and more targeted ads, this technology is under increasing scrutiny. Consumers and governments have complained about targeted advertising. The issues range from concerns about user privacy to negative effects on mental health.

Google has already announced its intention to phase out third-party cookies, a change that would significantly limit advertisers’ access to data.

Fortunately for marketers, newsletter sponsorships allow advertisers to target audiences without violating privacy guidelines.

On the Paving stone platform, many publishers serve interest-based newsletters. This makes it easier for advertisers to find their target audiences using minimal data. For example, if you are advertising your dog sitting business, you don’t need to make a list of everyone who has recently made an appointment with a kennel. Instead, you can partner with a Dog Owner Newsletter to access a whole list of puppy lovers.

Of course, the Paver Marketplace also encourages newsletters to include demographics, such as age distribution, gender, industry, job title, and average household income. However, this information is much less invasive and many subscribers are willing to share it themselves in exchange for more personalized content.

Since the newsletter sponsorship model doesn’t rely on in-depth tracking data, this is a promising investment in the future of advertising.

Email beats other advertising channels in engagement and ROI

Similar to other types of referrals, many advertisers favor newsletter referrals because of their native integration and qualified audiences.

Email as a marketing platform has continually outperformed other channels. In fact, research has shown that email marketing is more likely to generate sales than social media marketing. Some studies even found an average return of $ 36 for every $ 1 spent on email.

How to get ahead with newsletter referrals

Sold on newsletter referrals? Get started with ease – sign up as an advertiser with Paved. When you create an account, you get access to an exclusive marketplace, a unique publisher communication tool, and automatic performance tracking for every campaign you run.

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