Infrastructure Drives Newsletter Ad Spend

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Nathan Barry, CEO and founder of ConvertKit, on ConvertKit’s path to $100M in revenue

Interview
a lot of the biggest sponsored budgets in the email ecosystem don't live on tools like Mailchimp, ConvertKit, or Beehiiv.
Analyzed 8 sources

The key divide in newsletter ads is not publisher quality, it is infrastructure access. The biggest spending brands often run email from enterprise systems like Salesforce Marketing Cloud, Sailthru, or custom software, because they need deep customer data, complex segmentation, and internal controls that creator tools were not built for. That makes cross platform pipes more valuable than any closed ad marketplace inside one newsletter product.

  • Enterprise email systems are built for companies with large CRM and data stacks. They let teams pull in customer attributes, app behavior, and purchase history, then send different messages across email and other channels. That is why larger sponsored budgets often sit outside creator focused ESPs.
  • Open distribution matters because premium publishers are scattered across many stacks. SparkLoop says its network works across 20 plus ESPs, and its partner network is designed so one publisher can buy placement in another newsletter without sharing the same core email platform.
  • This is the same split seen across marketing automation more broadly. SMB and creator tools like Mailchimp and ConvertKit fit marketing led teams, while more technical or enterprise organizations use products like Customer.io, Iterable, HubSpot, and Salesforce as messaging becomes tied to product data and larger workflows.

The market is heading toward networks that sit above the ESP, not inside it. As more newsletter revenue comes from performance ads and paid recommendations, the winning layer will be the one that can route demand across enterprise systems, creator tools, and custom stacks while still handling tracking, payouts, and quality control.