The new dynamics of the digital media business are driving publishers away from advertising-based business models and toward user payments.
In that context, many of them are rediscovering that supposedly obsolete distribution channel, email. Email has the power to create an intimate relationship between a publication and its users. That relationship can translate into loyalty, which translates into a tendency to recommend a publication, participate in its surveys, attend its events, buy products it recommends, and pay for a subscription.
Kym Ellis of Ghost has just reminded publishers of the value of this channel and has some excellent examples of creating premium email newsletters to achieve it.
Ellis is describing newsletters that require a paid subscription, in some cases a very high-priced subscription. Users are willing to pay when the information is exclusive and highly differentiated.
Successful value propositions Ellis cites include content that is differentiated in various ways.
De Correspondent’s model is based on hyperlocal content. Statechery and The Information prosper on their focus on the business of digital technology and publishing.
Better user response
Email newsletters generate much more interaction and user-response than social media, Ellis argues:
“Average open rates for email are between 20%-30% and click-through rates are around 3%. This might not sound that great, but compared to other channels like social media, where average reach is 6% or less and click-through is 0.5%, it actually stacks up pretty well.”
Ellis has some recommendations for how to create a premium subscription-based newsletter product.
* The content has to be unique. It should fill a niche that is not being covered by other media.
* Provide value. By this Ellis means help people to be more successful with tips on how to be more efficient or make more money.
* Provide a different perspective than other media. For example, be entertaining when others are dry and technical.
Related:
Email bulletins help news media beat the Facebook-Google duopoly
The winning business strategy builds on relationships