Advertisers love these engaging newsletter units

Imagine having ad units in your newsletter that advertisers sought out, got amazing click thru rates from and were sold out throughout this year.

Can you actually imagine?

That’s the experience for one publisher in Atlanta that I want to introduce to you today. They are using a newsletter ad format that is creating real value and aligns so well with narrative-style newsletters.

They are using native ads that allow an advertiser to promote their message in a style that melds incredibly well with the rest of the newsletter (the narrative style), as well as an upsell to include photos with the text.

I first got to know Rough Draft’s approach to their newsletter revenue strategy when I consulted for the publication in 2023 and had the opportunity to learn directly from publisher Keith Pepper.

Recently I caught up with Keith to chat about their very successful strategy. Enjoy!

Q: Tell me about the strategy for your newsletter sponsored messages

When we launched our newsletters, we knew we wanted to include native ads that were similar to what Morning Brew and others were doing nationally, but we saw a gap in the local Atlanta market. We created two types of native ads:

• Sponsored Stories: Up to 90 words with a photo (which can be branded). This sponsor also gets recognition at the top of the newsletter under the logo.

• Text Ads: Up to 40 words, no photo.

Both use emojis and a gray background so they stand out, but still feel native to the newsletter.

An example of their Text Ads

Q: How have advertisers reacted to them and what have the results been?

Advertisers love them. We’re close to 100% sell-through for sponsored stories, often booking them months in advance since we only allow one per newsletter. Text ads give us more inventory, and we often use them as value-adds or bonus placements. The demand is so strong, I avoid running house ads — almost to a fault — because I want the newsletter to reflect real advertiser presence.

An example of their Sponsored Stories

Q: Do you like these better than traditional banner ads in a newsletter?

Yes, 100%. You can charge a premium for these formats, and they fit more naturally within the content. That said, they are labor-intensive. There’s more room for errors, like typos and formatting issues and our process involves multiple people daily. But it’s worth it. These native placements make us stand out and provide a stronger connection with our audience.

Q: What do your rates look like?

We generally charge three times more for a sponsored story than a text ad. We’re also rolling out a remnant plan, where advertisers can purchase a bank of credits and we’ll place their text ads when space is available. We’re doing this through Sponsy, the platform we use to manage newsletter ad inventory.

Q: Any advice for someone considering making this part of their newsletter?

Be consistent. Prioritize your newsletter to build a habit, much like a radio or TV morning show does. Send it at the same time, use the same format, every day or week. That routine builds trust with readers and makes your ad units feel less intrusive. Readers like brands who support their favorite newsletters, so by making our ads engaging makes them work because they feel like a natural part of the experience. Advertisers are happy with the results, and they renew.

You can find an archive of Rough Draft’s newsletters here, as well as sign up.

I want to thank Keith for sharing these great insights, which are part of the work we’re doing with many publishers today to reimagine their newsletter revenue. Email me at david@davidarkinconsulting.com for more information.