What is the best way to go about email capture?

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My blog has a good amount of traffic but I currently do not capture emails, which I know is important. What is the most valuable way to go about email capture? My thoughts are either:

1. start a newsletter, asking my website users to enter their email addresses and then sending them each blog post as it is published, with advertisements in the newsletter; or

2. rather than sending a newsletter, maybe publish some sort of alert to users who have entered their email addresses and drive the traffic back to the website. I haven’t yet monetized the website with ads but plan to, and this strategy would presumably increase traffic and therefore earnings from the ads that are displayed on the site.

I guess it seems the differentiator between these two options is – which is more valuable, website traffic or newsletter subscribers? Any guidance on which of the above two options (or any others I may not have included here) would be much appreciated.

Importantly if anyone recommends any particular software / service for either of the above options, that would be appreciated also.

Thanks.

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