Can You Measure the ROI of Blogging?
Since joining b5media four months ago, I’ve spent a lot of time talking with corporate executives about the pros and cons of blogging. Many can get their heads around the idea that a blog can be yet another marketing/public relations tool but they remain extremely hesitant about actually launching a corporate blog. Some of the biggest questions are things such as: what’s in it for us?, what are we going to blog about?, and who within the company is going to write the blog.?
Some of the answers that executives need to embrace blogging may be answered by a new report by Forrester Research called “The ROI Of Blogging: The “Why” And “How” Of External Blogging Accountability” (15 pages, $379). Forrester attempts to apply metrics to corporate blogs such as whether the blog generates media coverage, and how many comments a blog generates. For example, Forrester estimates the 100 comments that GM’s Fast Lane blog generates a month is equal to holding a $15,000 focus group each month.
Forrester analyst Charlene Li concedes it’s difficult to accurately assess a blog’s ROI given there are no measurement standards in place. Still, give Forrester credit for taking a stab at ROI because it could give some companies a higher comfort level when it comes to launching a blog(s). For some companies, especially consumer-facing companies such as GM, blogging is a no-brainer because it provides an effective way to communicate with consumers. In Canada, companies that should definitely have blogs are Tim Horton’s, Canadian Tire and Loblaws, which could have a terrific blog based on its popular President’s Choice brand.
It is telling that one of the most common concerns I hear from executive involves negative comments from potential blog readers because they don’t want to wash their dirty launch in public. While I think there is nothing wrong about moderating comments that are profane, inappropriate or spam, it would be wrong to shy away from comments that offer constructive criticism. That’s what a conversation is all about.
My advice to many companies thinking about blogging is spend the $379 on the Forrester Report….or take me out for lunch and I’ll “evangelize” about blogging until the cows come home.
Update: In terms of why people blog, it was fascinating to see Robert Scoble have a temper tantrum over the weekend after Engadget declined to link to a long video story he did on new chips from Intel. Putting aside whether the video had news value, the disappointment over the lack of linkage puts the spotlight on why people blog. Some do it for glory, some do it for the pleasure of writing, some do it for ego, and some do it for the money. If you’re going to blog, it’s probably a good idea to figure out why you wan to do it in the first place.
January 26th, 2007 at 7:08 am
You hit the nail right on the head with, “whats in it for us”. We had a debate on wether to start blogging for our company but the owner felt that for a ver y weak potential return, we would be exposing ourselves to great risk. Not to mention that everyone works long hours where we work an that they did not feel like dishing out more cash for this venture.
Mark, I have followed the blogosphere for about a year now, and I maight be wrong, but I havn’t seen many corporate blogs from companies based in Quebec. Do you have any info on this.
January 26th, 2007 at 8:49 am
I think this debate is happening within a lot of companies. As for your question about corporate blogs in Quebec, there are none that I’ve heard about. In fact, few Canadian companies are blogging right now.
January 26th, 2007 at 10:33 am
Most corporations want to have conversations with current and prospective customers and others on their terms…focus groups controlled by them, written questionnaires devised by the corporation, etc…all techniques where the corporation can control the content and distribution of the responses.
Corporate blogging is all about the conversation with no filters (except for rude, vulgar, or demeaning content). It assumes a level of transparency that does not exist within corporate cultures. This is the biggest barrier. The corporate response of lack of ROI or resource constraints is a convenient shield they hide behind.
If one doubts this view, examine closely PR’s role and influence within the corporation and it becomes abundantly clear.
January 26th, 2007 at 10:39 pm
Yesterday Michael Seaton, Director of Digital Marketing at Scotiabank, gave a presentation to the Assn of Internet Marketing and Sales on how Scotiabank evolved from an email newsletter, The Vault, to a weekly podcast, The Money Clip. They were careful not to appear as any type of Scotiabank promotion while providing personal and business financial management advice. Botton line: Seems like Scotiabank’s management is sold on the value of web-based media such as blogging and podcasts.
January 27th, 2007 at 9:39 am
[...] As an evangelist of the business benefits of blogging, I’ve been interested by the wave of posts around the blogosphere on Charlene Li’s new Forrester reports on the ROI of Blogging. When one of the major technology research companies adds it’s name to these kind of findings, it will add credibility for the topic as a whole. There are actually two reports: “The ROI Of Blogging: The “Why” And “How” Of External Blog Accountability”. and“Calculating The ROI Of Blogging: A Case Study, A Look At The ROI of General Motor’s FastLane Blog” These reports are available to Forrester clients, or anybody prepared to shell out $379 and $279. However, some of the key findings are quoted by Charlene, and some of the others who have had access to the reports. In her blog post she says: “We developed a framework that allows companies to track and measure the benefits of external blogs. From the companies and individuals we spoke with, the most common benefits are; increased brand visibility, savings from customer insights, reduced impact from negative user-generated content, and increased sales efficiency. The hard part is coming up with metrics that reflect these benefits, and more importantly, how to value those metrics.”Here’s the key table from the report: These are good indicators, although in his analysis, Dennis is sceptical about the value of the PR angle. For me, and for any small business trying to get some press exposure and build their brand, this is one of the easiest components to justify. As an example, a year ago one of my blog posts, reporting on a Salesforce.com event, got picked up and reported by AccountingWEB one of my target publications for advertising and getting noticed. The journalist in question rang me up to apologise, as he had lifted most of my words. Since he had mentioned me in the first sentence, and my company in the second, I didn’t care what he did with my text! Now to get a name check like this in the traditional way I would need to spend £2-3000 a month for 6 months with a decent PR firm to get my name and brand picked up by the mainstream media. For me it was a few pounds a month hosting this blog, and the time and effort required to write it. Earlier in the first report Charlene comments: “Many large companies stand on the brink of blogging, yet they are unwilling to take the plunge. Others, having dove in early, now face the challenge of managing existing blogs without the ability to show that they effectively support business goals. While blogging’s value can’t be measured precisely, marketers will find that calculating the ROI is easier than it looks. Following a three-step process, marketers can create a concrete picture of the key benefits, costs, and risks that blogging presents and understand how they are likely to impact business goals. This, in turn, enables marketers to answer the key questions, such as whether to blog or not to blog, or to make smart choices about an existing blog.”The report and the metrics above will help make more businesses realise that they need to incorporate blogging in to their marketing mix, and that has to be good news. Here are some other views on Charlene’s report from around the blogs: Dennis Howlett’s analysis from the accounting profession’s point of view: AccMan ProDan Farber’s view: Between the LinesDrew B’s take: Drew B’s take on Tech PR Renee Blodgett’s take from a corporate communication’s point of view: down the avenueMinic Rivera’s take: The Blogging TimesTodd Tweedy’s take from an online marketer’s point of view: WordSpreadsQuickly.comTris Hussey’s view on: Business Blog ConsultingSteve Rubel’s take: MicropersausionKevin O’Keefe’s take from a Law firm’s point of view: Real Lawyers Have BlogsMatt Dickman’s view, as a Technology Strategist at an interactive marketer: Techno//MarketerMark Evans writing in the online, European, citizen media newspaper: AGORAVAXCarolyn Elefant’s view from: LAW.COM Blog NetworkDarren Barefoot’s take on: DarrenBarefoot.comMark Evans‘ Canadian view at: markevanstech.comNate Anderson from: ars technicaJohn Cass‘ PR and web 2.0 view: PR CommunicationsRon Shelvin’s view: Marketing ROI: Whims from Ron Shevlin Technorati Tags : Enterprise+Iregulars, blogging, Charlene+Li, Forrester, ROIPowered By Qumana [link] [...]