Have you ever wondered what the market size was for your company? Ever thought of a product idea and been curious how huge it could be? Ever watched an episode of Shark Tank and thought "How in the world did that product get so popular?" Well, here at Aurora we sure did! That's why we set out to build our Market Size Calculator. Within as little as 5 minutes, you can now get a custom market sizing report based on verifiable data and transparent calculations. Our top AI market research tools combine GenAI with validated, traceable data sets to create a one-of-a-kind report in minutes, not weeks.

We have long admired the team over at Beehiiv and decided to run a market sizing report for their business.

Please see the report Aurora generated below, and if you have any thoughts or questions you can email us here. 

 

Market Size Figures

Total Addressable Market (TAM):

Customers/Users: 20.7M

Revenue: $2.07B - $4.14B

Serviceable Addressable Market (SAM):

Customers/Users: 559K - 1.12M

Revenue: $112.5M - $224.9M

 

Executive Summary

The newsletter industry presents a promising market opportunity, driven by the growing demand for digital publishing and content monetization. According to the analysis, the Total Addressable Market (TAM) for newsletter platforms is estimated to range between $2.07 billion and $4.14 billion in potential annual revenue, with a total of 20.7 million potential newsletter creators worldwide.

When considering the Serviceable Addressable Market (SAM), which accounts for an adoption rate of 27% and various pricing tiers, the potential annual revenue range narrows to $112.5 million to $224.9 million. This SAM revenue range is based on Beehiiv capturing a 10-20% market share of the addressable market, which consists of 558,900 to 1,117,800 potential customers across different pricing tiers.

The competitive landscape is populated by various newsletter platforms, each offering unique features and pricing models. Key players include Substack, MailerLite, Ghost, Mailchimp, AWeber, Flodesk, ConvertKit, Omnisend, and Campaign Monitor. These platforms cater to different segments of the market, ranging from free offerings to enterprise-level solutions.

Furthermore, the analysis highlights relevant behavioral data, such as email usage preferences, newsletter engagement rates, content creator behavior, platform preferences, monetization strategies, and AI adoption trends. This data provides valuable insights into the target audience's preferences and behaviors, which can inform product development and marketing strategies.

Overall, the newsletter industry presents a significant growth opportunity, driven by the increasing demand for digital content, creator monetization, and the global reach of email marketing. Beehiiv's position in this market will depend on its ability to differentiate its offerings, leverage emerging trends, and effectively target the addressable market segments.

 

Key Data Points

1. Total number of potential newsletter creators: 207 million content creators worldwide [4][5][6]
2. Number of active newsletter creators: 26,345 active email newsletter creators globally [7]
3. Total addressable market size:
   • Global email marketing industry size in 2023: $11 billion [2]
   • Global digital publishing market size in 2023: $46.48 billion [10]
   • Global creator economy value in 2023: $191.55 billion [13]
4. Pricing tiers for Beehiiv: $0, $39, $99, and enterprise [idea]
5. Beehiiv's user base: More than 400k publishers, with more than 212M unique readers [idea]
6. Market growth rates:
   • Email marketing industry CAGR: 13.3% [67][68]
   • Digital publishing market CAGR: 11.4% [10]
   • Creator economy CAGR: 22.5% [13]
7. Beehiiv's revenue: $13 million ARR as of April 2024 [41]
8. Geographic distribution: Varied internet penetration rates across regions [33][34][35][36][37]

 

Market Size Calculations

Total Addressable Market (TAM) Calculations:

• Total potential newsletter creators: 207,000,000 (total content creators) * 10% (potential newsletter creators) = 20,700,000
• Potential annual revenue at 100% market penetration:
  • Low estimate: 20,700,000 * $100 (low ARPU) = $2,070,000,000
  • High estimate: 20,700,000 * $200 (high ARPU) = $4,140,000,000
• TAM Revenue range: $2,070,000,000 - $4,140,000,000
• TAM Customers: 20,700,000

 

Serviceable Addressable Market (SAM) Calculations:

• Addressable market based on adoption rate: 20,700,000 * 27% (adoption rate) = 5,589,000 potential users
• Distribution across pricing tiers:
  • Free tier (75%): 4,191,750 users
  • $39 tier (20%): 1,117,800 users
  • $99 tier (4%): 223,560 users
  • Enterprise tier (1%): 55,890 users
• SAM Revenue range: $112,462,768 - $224,925,536
• SAM Customers: 558,900 - 1,117,800 (10-20% of addressable market)
• Annual revenue calculation:
  • $39 tier: 1,117,800 * $39 * 12 months = $523,540,400
  • $99 tier: 223,560 * $99 * 12 months = $265,747,280
  • Enterprise tier: 55,890 * $500 * 12 months = $335,340,000
• Total annual revenue: $523,540,400 + $265,747,280 + $335,340,000 = $1,124,627,680
• Adjusting for Beehiiv's potential market share (10-20%):
  • Low estimate: $1,124,627,680 * 10% = $112,462,768
  • High estimate: $1,124,627,680 * 20% = $224,925,536

 

Assumptions

Proxy Data

1. For adoption rates, we can use the percentage of creators planning to start a newsletter: 27% of creators planned to start a newsletter in 2025 [12]. This indicates a potential adoption rate for newsletter platforms.
2. For pricing tier distribution, we can use industry averages:
   • Free tier: Typically accounts for 70-80% of users in freemium models
   • Paid tiers: Usually 20-30% of users opt for paid plans We'll assume 75% free, 20% for the $39 tier, 4% for the $99 tier, and 1% for enterprise.
3. For geographic distribution, we can use internet penetration rates as a proxy for potential market distribution:
   • High-income countries: 93% [33]
   • Europe: 91% [35][36]
   • Asia: 75.3% (Eastern Asia) [34]
   • Africa: 38% [35][36] This suggests a higher concentration of potential users in high-income countries and Europe.

Assumptions

• Market Penetration: Given Beehiiv's current user base of 400k publishers [idea] out of 26,345 active newsletter creators [7], we can assume a high market penetration. However, considering the total content creator market of 207 million [4][5][6], we'll assume a conservative 5-10% of content creators could potentially become newsletter creators.
• Revenue per User: Based on Beehiiv's $13 million ARR [41] and 400k publishers [idea], we can estimate an average revenue per user (ARPU) of $32.5 per year. However, this likely includes both free and paid users. For paid users, we'll assume an ARPU of $100-$200 per year, considering the pricing tiers.
• Enterprise Pricing: For the enterprise tier, we'll assume an average price of $500 per month, based on typical SaaS enterprise pricing models.
• Market Share: Given Beehiiv's rapid growth and feature set, we'll assume it can capture 10-20% of the newsletter platform market in the medium term.

These assumptions are based on industry trends, available data points, and logical deductions from the given information. They provide a framework for estimating the TAM and SAM for Beehiiv.

 

Our Methodology / Thought Process

To calculate the Total Addressable Market (TAM) and Serviceable Addressable Market (SAM) for Beehiiv, a newsletter platform, we followed a structured approach based on available data and logical assumptions.

First, we identified the total potential market for newsletter creators by considering the broader content creator market. With 207 million content creators globally [4][5][6], we assumed a conservative 5-10% could potentially become newsletter creators, given the growing popularity of this format.

Next, we estimated the potential revenue for this market by considering industry benchmarks for pricing tiers and average revenue per user (ARPU). We assumed an ARPU range of $100-$200 per year for paid users, based on Beehiiv's pricing tiers. For the enterprise tier, we assumed an average price of $500 per month, aligning with typical SaaS enterprise pricing models.

To calculate the TAM, we multiplied the total potential newsletter creators by the ARPU range, resulting in a TAM revenue range of $2.07 billion to $4.14 billion annually. We also considered the geographic distribution of potential users, assuming a higher concentration in high-income countries and Europe based on internet penetration rates.

For the SAM calculation, we factored in the adoption rate for newsletter platforms, using a proxy of 27% of creators planning to start a newsletter in 2025 [12]. We then distributed the addressable market across Beehiiv's pricing tiers, assuming a typical freemium model distribution (75% free, 20% for the $39 tier, 4% for the $99 tier, and 1% for enterprise).

By calculating the revenue potential for each paid tier and summing them, we arrived at a total annual revenue estimate for the addressable market. Finally, we adjusted this figure based on Beehiiv's potential market share, assuming a range of 10-20% in the medium term, given its rapid growth and feature set.

The resulting SAM revenue range for Beehiiv is $112.46 million to $224.93 million annually, with a corresponding customer base of 558,900 to 1,117,800 users.

Throughout the process, we relied on various data points, industry benchmarks, and logical assumptions to bridge gaps in available information. This approach provides a structured framework for estimating the TAM and SAM for Beehiiv, while acknowledging the inherent uncertainties and limitations of such calculations.

 

Competitor Research Summary

Mailchimp:

• Revenue of $700 million in 2023 [69][70]
• 3.4% market share in email marketing platform market [72]
• Over 67% market share in broader email market [71]
• Pricing tiers: Free (up to 500 contacts), Essentials ($9.17/month for up to 50,000 contacts), Standard ($13.70/month for up to 100,000 contacts), Premium (starting at $274.92/month) [73][74][75]
• Features include email marketing, marketing automation, audience management, AI-powered content optimization, analytics [76][77][78]

Ghost:

• 5% market share in newsletter platform market [79]
• Around 22,000 active customers and 5,000 self-hosted users as of 2024 [80]
• Pricing tiers: Starter ($11/month for up to 1,000 subscribers), Creator ($31/month starting at 1,000 subscribers), Team ($63/month starting at 1,000 subscribers), Business ($249/month starting at 10,000 subscribers) [81]
• Features include newsletter publishing, membership/subscription management, customizable themes, integrations [82][83][84][85]

Substack:

• 60% market share in newsletter platform market [86]
• Over 2 million paid subscribers and 20 million monthly active subscribers as of February 2023 [87]
• Pricing: Minimum $5/month for paid subscriptions, with Substack taking 10% commission plus transaction fees [88][89][90]
• Features include easy publishing, paid subscriptions, community features, mobile app [91][92][93]

Klaviyo:

• Generated $472.7 million in revenue in 2022, up 62.4% from 2021 [94]
• Over 143,000 customers as of December 31, 2023 [95]
• Pricing tiers: Free (up to 250 contacts), Email (starting at $20/month for 251-500 subscribers), Email and SMS (includes SMS credits), Klaviyo One (enterprise tier) [96][97][98][99]
• Features include pre-made templates, customer segmentation, AI integration, automated flows, detailed analytics, ecommerce platform integrations [100][101][102][103]

 

Summary of Collected Data

Financial Data

Global Email Marketing Industry Size:

• The global email marketing industry size in 2023 is estimated to reach almost $11 billion in revenue [2].

• Email marketing revenue is set to cross the $10 billion mark in 2023 [38].
• The global email marketing industry was valued at $7.5 billion in 2020 and is expected to more than double to $17.9 billion by 2027, with a compound annual growth rate (CAGR) of 13.3% [67][68].

Global Digital Publishing Market:

• The global digital publishing market size in 2023 is estimated to be around $46.48 billion, with a compound annual growth rate (CAGR) of 11.4% expected to reach $51.78 billion by 2024 [10].
• The global demand for digital publishing platforms is expected to reach a valuation of USD 2,492.89 million by the end of 2023, growing at a CAGR of 8.1% over the forecast period (2023 to 2033) [9].
• The global digital publishing revenue worldwide was around $22.05 billion USD in 2023 [54].

Creatory Economy:

• The global creator economy was valued at approximately $191.55 billion in 2023, with a projected growth to $528.39 billion by 2030 at a compound annual growth rate (CAGR) of 22.5% [13].
• Another source estimates the global creator economy to be worth around $250 billion in 2023 [14].

Newsletter Monetization:

• The average price of a paid newsletter as of 2024 was $11, with some high-value newsletters targeting business audiences charging over $40 a month [18].
• The average yearly price of a paid newsletter was $100, with some popular business and finance newsletters charging annual subscriptions of over $300 [19].

Content Marketing Industry:

• In 2022, marketing spending in the United States alone reached nearly $481 billion, with digital marketing being a significant segment [17].

Software Technology Market:

• The global software market size in 2023 is projected to be around $659 billion, with a strong growth trend expected to reach $858 billion by 2028 [43].
• SaaS spending is projected to stay strong, reaching $195 billion in 2023 [44].

Content Management and Publishing Industry:

• The content management software market size was valued at USD 22.1 billion in 2023 [49].
• The global content management software application market was expected to reach 48.3 billion U.S. dollars in 2022, with a forecasted CAGR of 1.1% from 2021 to 2026 [47].
• The enterprise content management market was valued at USD 39.58 billion in 2023 and is projected to grow to USD 131.11 billion by 2032, with a CAGR of 14.27% [46].

Digital Publishing Industry:

• The global digital publishing market was estimated at US$150.6 Billion in 2023 and is projected to reach US$317.5 Billion by 2030, growing at a CAGR of 11% [45].
• The book publishing market was valued at $137.6 Billion in 2023 and is expected to grow to $164.5 Billion by 2030, with a CAGR of 2.3% [48].

Newsletter Platform Revenue:

• Beehiiv reported an annual recurring revenue (ARR) of $3 million in June 2023, which grew to $13 million by April 2024, a 450% year-over-year increase [41].

Marketing Technology Market:

• The global marketing technology (MarTech) market size grew more than 31 percent in 2023, reaching $508.9 billion [65].

 

Behavioral Data

Email Usage and Preferences:

• 89.45% of Americans over the age of 15 use email, with 93.6% of those aged 25 to 44 using email [25].
• 95% of internet users aged 25-44 in the U.S. reported using emails in November 2023 [26].
• 86.5% of internet users aged 65 and above use email [26].
• 99% of email users check their inbox every day, with some checking 20 times a day [25].
• 58% of consumers check their email first thing in the morning [25].
• 55% of consumers prefer email as their top business communication channel, far outpacing social media (27%) and SMS (17%) [67].

Newsletter Engagement:

• 57.1% of newsletter creators send a newsletter monthly, while 37.9% send weekly, and 4.9% send daily [27].
• The average email open rate for newsletters on Beehiiv was 38.69% in 2023 [28].
• Monday and Sunday have the highest newsletter engagement rates, with open rates of 39.3% and click-through rates of 1.7% and 1.6%, respectively [27].
• 47.3% of consumers subscribed to at least one email newsletter for news and entertainment [12].

Content Creator Behavior:

• 27% of creators planned to start a newsletter in 2025 [12].
• 58% of creators surveyed published newsletters in 2023, making them the most popular form of content [15][16].
• 75% of creators chose to create video content in 2024 [62].
• 51% of creators created articles, blog posts, and books [62].
• Over 51% created visual content [62].
• 42% created audio content [62].

Platform Preferences:

• TikTok and YouTube are the top favored and top-earning platforms, with 26% of creators preferring each [59][60].
• Instagram is the third most preferred platform, with 22% of creators favoring it [58][60].
• 26% of consumers tipped creators on YouTube, making it the favorite platform for tipping and subscribing to support favorite creators [62].

Monetization Behavior:

• The majority of content creators make between $50K and $100K per year [59][60].
• Brand deals are the primary source of income (31%), followed by their own brand/business (25%), and creator funds (15%) [59][60].
• 72% of creators earned less than $500, while 17% earned between $500 and $5,000, and 4% earned between $10,000 and $50,000 [63].

AI Adoption:

• 93% of content creators use AI-powered tools in their content creation process [61].
• Marketers who have used AI for personalization report an increase in email marketing revenue by over 40% and a click-through rate of 13.44% [52].

Mobile Usage:

• 75% of Gmail users and 61% of all email users check their emails primarily on mobile devices [55][56][57].
• 59% of Millennials primarily use their smartphone to check email, while 67% of Generation Z scans their inbox on mobile [25].

Language Preferences:

• Latino immigrants prefer to consume news in Spanish, indicating a strong preference for native languages in news consumption among certain demographics [30].

Subscriber Behavior:

• Signing up for a newsletter can reduce churn by 22% [42].
• The typical conversion rate from free to paid newsletters is around 5%, with some creators achieving up to 10% conversion rates [19].
• The typical subscriber churn rate on a paid newsletter was 4% per month [19].

Industry-Specific Engagement:

• Education industry newsletters have an average open rate of 28.5% [39].
• Financial Services newsletters have an average open rate of 27.1% [39].
• Real Estate, Design, Construction newsletters have an average open rate of 37.18% [40].

These behavioral data points provide insights into how users interact with newsletters, email marketing, and content creation platforms, as well as preferences for different types of content and monetization strategies.

 

Demographic Data

Global Email Users:

• As of 2023, there are over 4.37 billion email users worldwide, representing approximately 54% of the global population [3][8].
• This number is projected to grow to 4.89 billion by 2027 [3].

Age Distribution:

• 95% of internet users aged 25-44 in the U.S. reported using emails in November 2023 [26].
• 86.5% of internet users aged 65 and above use email [26].
• 59% of Millennials primarily use their smartphone to check email, while 67% of Generation Z scans their inbox on mobile [25].

Geographic Distribution:

• South Africa has the highest email usage rate, with 97.3% of internet users reporting monthly email service use [32].
• Brazil follows with 94.6% of internet users accessing electronic mail services [32].
• Worldwide, approximately 75% of internet users used email services in the last reported period [32].

Internet Penetration:

• High-income countries: 93% of the population used the internet [33].
• Northern Europe: 97.5% of the population used the internet as of April 2024 [34][36].
• Europe: 91% of the population used the internet as of 2024 [35][36].
• Asia: 75.3% of Eastern Asia used the internet as of April 2023 [34].
• Africa: 38% of the population used the internet [35][36].
• Small Island Developing States (SIDS): 67% of the population used the internet as of 2023 [37].
• Least Developed Countries (LDCs): 35% of the population used the internet as of 2023 [37].
• Landlocked Developing Countries (LLDCs): 39% of the population used the internet as of 2023 [37].

Content Creator Demographics:

• There are over 207 million content creators worldwide [4][5][6].
• Breakdown by follower count:
  • 23 million with less than 1,000 followers
  • 139 million with between 1,000 and 10,000 followers
  • 41 million with between 10,000 and 100,000 followers
  • 2 million with between 100,000 and 1 million followers
  • 2 million with more than 1 million followers [5][6].

Newsletter Creators and Readers:

• As of 2023, there were approximately 26,345 active email newsletter creators globally [7].
• Beehiiv reported 10,000 newsletter creators and 93 million unique readers in 2023 [66].

Language Preferences:

• Latino immigrants in the United States prefer to consume news in Spanish [30].
• English remains the most popular language for web content, with over 52% of websites using it as of January 2024. Spanish ranks second, with 4.3% of web content [31].

Device Usage:

• 46% of all email opens occur on mobile devices, with 28.4% of these opens happening on iPhones, 9.3% on iPads, and 2.3% on Google Android devices [29].
• 73% of companies prioritize mobile device optimization when creating email marketing campaigns [29].

Income Levels:

• The majority of content creators make between $50K and $100K per year [59][60].
• 72% of creators earned less than $500, while 17% earned between $500 and $5,000, and 4% earned between $10,000 and $50,000 [63].

Education Levels:

• Specific data on education levels of newsletter creators is not provided in the sources.

This demographic data provides insights into the global distribution, age groups, device preferences, and income levels of email users and content creators, which are relevant for understanding the potential market for newsletter platforms.

 

Competitor Data

Newsletter Platforms and Market Share:

• Substack: Known for its ease of use and ability to start a newsletter without initial costs. It takes a 10% revenue cut from paid subscriptions [22].
• MailerLite: Offers a generous free plan and a wide variety of newsletter templates. It has a drag-and-drop editor, custom HTML email editor, and robust analytics capabilities [22].
• Ghost: Praised for its modern design and powerful features for media creators. It offers a full website, CMS, and newsletter platform with minimal and clean design [22].
• Mailchimp: Has a generous free plan and many time-saving features like pre-designed templates and AI-driven design tools [24].
• AWeber: Known for putting newsletters on autopilot, beneficial for managing multiple clients or automating email marketing campaigns [23].
• Flodesk: Offers unlimited subscribers and sends at one flat rate, making it cost-effective for those with large subscriber bases [23].
• ConvertKit: Specializes in paid newsletters and is highly regarded by creators who need advanced features for managing their paid content [23].
• Omnisend: Designed for eCommerce newsletters and campaigns, it's a strong choice for businesses looking to integrate their email marketing with their online store [23].
• Campaign Monitor: Ideal for agencies handling email marketing for multiple clients, it offers robust features for managing large-scale email campaigns [23].

Pricing Models:

• MailerLite:
  • Free: Up to 1,000 subscribers, includes drag-and-drop editor [20].
  • Growing Business: $9/month (billed annually), starts at 1,000 subscribers, allows selling digital products [20].
  • Advance: $19/month (billed annually), starts at 1,000 subscribers, includes HTML editor and automation features [20].
• Kit:
  • Newsletter: $0/month, up to 10,000 subscribers, unlimited newsletter sending and forms [20].
  • Creator: $9/month, starts at 300 subscribers, removes branding and includes polls [20].
  • Creator Pro: $50/month, starts at 1,000 subscribers, includes referral program [20].
• Mailmodo:
  • Lite: $39/month (billed annually), up to 2,500 subscribers with standard email sending features [20].
  • Pro: $79/month (billed annually), starts at 2,500 subscribers with up to three team members [20].
  • Max: $159/month (billed annually), starts at 2,500 subscribers with up to five team members [20].
• AWeber:
  • Free: Up to 500 subscribers, includes most features [20].
  • Lite: $15/month, starts at 500 subscribers, removes AWeber branding, and includes automations [20].
  • Plus: $30/month, starts at 500 subscribers and higher sending volume [20].
  • Unlimited: $899/month, up to 150,000 subscribers [20].

User Base and Growth:

• ConvertKit: Noted a 70% increase in emails sent every second, from 902 emails per second in 2021 to 1,522 emails per second in 2023 [21].
• Substack: Maintained a free model but had a take rate or platform fee of 10%, making it a popular choice among creators [21].
• Ghost: Also maintained a free model but had a monthly pricing structure starting at $174 for up to 100,000 subscribers [21].

Features and Strengths:

• MailerLite: Known for its comprehensive features and robust analytics [22].
• Ghost: Highly regarded among media creators for its modern design and powerful features [22].
• Mailchimp: Offers robust features but some users have reported issues with delivery rates due to spammers on the free plan [24].
• AWeber: Noted for its ability to automate email marketing campaigns [23].
• Flodesk: Praised for its cost-effectiveness for large subscriber bases [23].
• ConvertKit: Highly regarded for its advanced features for managing paid content [23].
• Omnisend: Strong choice for eCommerce integration [23].
• Campaign Monitor: Robust features for managing large-scale email campaigns [23].

Industry Trends:

• The global email marketing industry size in 2023 is estimated to reach almost $11 billion in revenue [2].
• The number of global email users in 2023 was approximately 4.37 billion, projected to grow to 4.89 billion by 2027 [3].
• 87% of businesses now say email marketing is a crucial component to their organization's success, although only 59% of B2B marketers use email marketing [1].
• The average open rate for email marketing campaigns is 25.10% [51].
• The average click-through rate (CTR) for email campaigns is 1.50% [51].
• Automated emails generate 320% more revenue than non-automated emails [53].
• The average return on investment (ROI) for email marketing is $36 for every $1 spent, delivering a 3600% ROI [50][53].

This data provides an overview of the competitive landscape in the newsletter industry, highlighting key players, their features, pricing models, and overall industry trends.