B2B Newsletter Strategy: Why HubSpot Invests in Newsletters

Hey, what's going on?

Last week, I shared some exciting news on LinkedIn: HubSpot Media had acquired the AI newsletter Mindstream. While I was proud of the addition, I was really interested in the conversation that was sparked in the comments. One question stood out: why newsletters? Specifically, Suryansh asked if our commitment to newsletters has paid off in terms of ROI. Since I think it's a question a lot of marketers are asking, I wanted to take some time to break down how we think about newsletters, why we're investing, and why the strategy is built for the long-term.

Do newsletters drive demand?

Let's start with the most common question I get: do newsletters drive demand? Well, they do, but you need the right expectations. Sure, newsletters don't deliver high lead volumes you might get from channels like organic search and digital ads, but here's the thing: the lead-to-QL rates tend to be 3-4% higher. This is because newsletters give us direct access to an engaged audience, week after week. When someone subscribes, you've earned their trust, and that makes them much more likely to take action down the line.

How do you prioritize newsletter subscriber quality over volume?

Now, here's the catch: the key to success with B2B newsletters (in a customer acquisition model) isn't just about growing your subscriber base. It's about acquiring quality prospects. At HubSpot, we've learned to focus on high-quality subscriber acquisition sources like Organic Search, Social, Swaps, Google, Meta, and SparkLoop. These platforms bring in subscribers who fit our customer profile and are genuinely engaged. Whereas low-cost sources like co-reg and TikTok might boost your numbers quickly but come with higher churn and low engagement. Trust me, we've been there.

I'll be the first to admit that focusing on quality does come with a higher cost per subscriber, and yes, cost per lead is also higher. But the long-term ROAS makes it worthwhile. The commitment has to be long-term. Building a loyal subscriber base doesn't happen in a few weeks, but once you do it, it's one of the most valuable assets you can have.

Why do editorial newsletters work as a prospecting strategy?

Here's why newsletters really work. Most prospect emails are transactional: promotions, discounts, meetings, product pushes. It's all about asking for something. But editorial newsletters are the exact opposite. Instead of selling first, we offer value through industry news, expert commentary, and practical education. Sean Griffey, CEO of Industry Dive, said, "there's real value in 100k incredibly targeted, valuable people...email is a platform you own and nobody can take that away." That direct connection with the audience is what makes newsletters so effective for long-term growth. Offer value first; monetize later.

How do newsletters drive value at every stage of the funnel?

Newsletters aren't just for driving leads. They're powerful at every stage of the funnel.

1. Brand Building: Newsletters are an incredible tool for positioning your brand as a thought leader in your industry. By consistently delivering relevant, insightful content, you build credibility and trust with your audience. This trust translates into long-term brand equity, making your audience far more receptive to future offers.
2. Lead Generation: Once you've built a strong subscriber base, newsletters become a consistent lead generator. We've found that placing native ad spots within our newsletters, highlighting offers that are relevant to our audience, generate a steady flow of leads each week. Especially, when you're consistently investing in new subscriber acquisition. Just be careful not to overwhelm your readers. Refresh your offers regularly to avoid audience fatigue.
3. Product Consideration: Your subscriber list can be a huge asset in your paid digital strategy as well. You can use your list to create a lookalike audience for targeting with product ads, or retarget your existing subscribers with bottom-of-funnel product messaging. This approach allows you to nurture those prospects through email and efficiently turn them into qualified leads through smart advertising.

Why is now the time to invest in newsletters?

Our newsletter investments are happening against the backdrop of declining trust in traditional media. A recent Gallup study showed that Americans' trust in mass media has dropped significantly, with only 31% saying they have a "great deal" or "fair amount" of trust. So where are people turning to? To niche, practitioner-driven newsletters. These newsletters provide credibility and focus that mass media often lacks, making them a preferred source of information for many in the business world.

This shift in consumer preference is exactly why we're investing in newsletters. People are curating their media diet more than ever, subscribing to just a few trusted sources. We want to be one of those sources. Newsletters allow us to build a direct relationship with our audience, one that isn't dependent on the algos.

The best time to start a newsletter was five years ago. The second best time is today. But only if you're ready to play the long game. Remember: while digital ads stop working the moment you stop paying, a loyal newsletter audience compounds in value every single week.

Until next time ✌️
Kyle

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