How Substack Turned Free Gifts Into a Growth Machine

Substack’s latest move to boost its mobile app is making waves. The platform is offering free 1-month gift subscriptions to users, but there’s a catch: the gifts are only redeemable in the Substack app.

While this campaign is designed to drive app installs, it also has significant implications for writers.

How Substack’s “Here’s $7” Gift Campaign Works

Substack is emailing users with subject lines like “Here’s $6” or “Here’s $7” (or however much the free month costs) to promote the free gift subscriptions. The subject line is short and smart.

However, if users click the link from a desktop, they’re met with a pop-up that says, “Accept this gift in the Substack app.”

To claim the gift, users must either scan a QR code or enter their email address and open the link on their phone.

This approach has sparked mixed reactions.

Some users find it inconvenient.

While marketers see it as a clever strategy.

The Surge in App Downloads

The campaign is working. According to data from App Figures, iOS app downloads jumped from 7,752 daily installs on October 31 to 17,382 by November 3. Daily downloads ranged between 6,600 and 8,900, with a noticeable spike during the campaign. The app’s ranking in the U.S. App Store’s News category also improved, moving from 7th to 4th.

Substack claims the app is now the No. 1 source of subscriptions on the platform.

This shift is significant, as recommendations — previously the top driver — generated 2 million subscriptions last month, while the app drove 3 million.

Benefits for Writers

The app’s growth is good news for writers. App users are more engaged and more likely to subscribe, share, and interact with content. Substack reports that subscribers using the app are seven times more likely to share, like, comment, or restack posts.

Due to the app’s growth, September and October 2024 were months where some creators grew their paid conversions significantly.

While other social media platforms like X penalize external links, discovery in the Substack app is now generating about the same number of subscriptions as all social media sources combined.

Substack’s free gift campaign is driving app installs and benefiting writers in the process. Features like Notes, Home feed, and onboarding suggestions are driving forces behind the app’s growth. While the campaign has its critics, the app’s growth is undeniable.

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