"Substack, the historically anti-advertising newsletter platform, has announced it will now allow adverts on the site following its latest funding round. Substack was founded with the goal of providing an alternative to online advertising as a monetisation model for writers and creators. It was founded in 2017 as a website where people can write and subscribe to newsletters, some of which are paid. In recent years, it has diversified to incorporate social media and video."
"It has also seen a surge of interest among high-profile figures in the UK, its second-biggest market. Keir Starmer joined Substack last week and Piers Morgan launched a newsletter on the site earlier this year. In 2019, the platform's co-founder, Hamish McKenzie, said: "Ad models break everyone's brains." However, on Tuesday, the company launched a pilot scheme to connect newsletters with sponsoring brands, following its latest funding round, in which it agreed to trial ads."
Substack was founded in 2017 to provide an alternative to online advertising as a monetisation model for writers and creators. The platform expanded into social media and video, launching a mobile app in 2022 and a short-form content feed in 2023. It reached five million paid subscriptions this year and reported 39% year-on-year audience growth. High-profile UK figures have joined the platform, including Keir Starmer and Piers Morgan. In July, Substack raised $100m in a Series C that valued the company at $1.1bn, led by investors including BOND, The Chernin Group and Andreessen Horowitz. Substack has begun a pilot connecting newsletters with sponsoring brands and will trial ads, while taking a 10% cut of subscription revenue.
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