Blogging redux

In a recent DM News column, I apparently offended a segment of the blogging community by suggesting that perhaps blogs might be “an utter waste of time … a pure vanity publication that won’t pay you back even one thin dime for your effort.”

Here’s what all the hoopla has taught me so far: bloggers are a tight-knit community that sticks together and are rabidly enthusiastic about their medium. Many are self-described blogging “evangelists.”

Their attitude toward new and untested marketing media and channels is probably a lot different than yours and mine (I assume that you, like me, are a direct marketer).

I told virtually every blogger who said I had treated blogging unfairly the following….

“We direct marketers only care about one thing in marketing: ROI (return on investment).

“Unless a dollar spent on a marketing test returns two or three dollars in revenues, we consider that test a failure — and cut off the promotion.”

For instance, there are direct marketers generating millions of dollars a year in direct product sales from e-zines and e-mail marketing campaigns. One I know produces upwards of $40 million in annual sales from their e-mail marketing.

I challenged the bloggers: “Can anyone out there show me even a single blog that produces one percent of that — $400,000 annual sales?”

No takers, so far. Not a single blogger could produce evidence of a blog generating a significant, positive ROI (the cut-off figure for which I have chosen direct sales of $400,000 a year or more).

But what my challenge did produce was a bunch of passionate responses explaining to me why blogging is without question the next big thing in marketing despite its lack of discernible ROI.

“It’s all about the conversation,” writes Marc Orchant, feeding me The Cluetrain Manifesto’s party line. “That’s the point of the blog space. As a lifelong marketer myself, I find the DM industry behind the curve, generally speaking, when it comes to embracing disruptive technologies.” Reader B.L. Ochman says, “Blogs help develop a conversation between a company and its customers [and] have become an important part of the marketing mix.”

As direct marketers, I’m not sure our primary objective is to embrace disruptive technologies or have conversations. Isn’t it more about boosting response, generating a positive ROI, and beating the control?

“My argument is that blogging is more likely to raise brand awareness, but that the impact on direct sales will be more difficult to assess,” says Max Blumberg. “Therefore, I don’t think it is appropriate to look for a cose relationship between blogging and direct sales.”

Some of the writers who contacted me were eager to compare blogging to direct mail and show me that DM is inferior. Blogger Yvonne Divita states, “The small business owner cannot hope to create and support a continuing successful direct mail campaign.”

I’d recommend Yvonne start reading DM News; every issue is packed with stories of businesses large and small making healthy profits with both traditional direct mail as well as e-mail marketing.

Yvonne also told me that when she was a corporate assistant to the CEO of a good-sized company, “I threw all the direct mail in the circular file at my feet. The CEO didn’t want to see it. So, who’s really reading your client’s direct mail piece?”

Yvonne seems unaware of the concepts of cost per thousand and break-even analysis, which let us direct marketers make a healthy profit even if 98 out of 100 prospects toss our mailings away without a second glance. She comments, “When a direct mail piece can only assure the sender of approximately a 2% to 3% return, you can’t convince me the hundreds or thousands spent on it is worth it.” Tell that to Omaha Steaks, Covenant House, and Phillips!

Jennifer Rice explains that comparing blogs with direct marketing is to look at blogs from the wrong angle: “Blogging is not a direct response vehicle. It’s an awareness, visibility, and promotion vehicle that happens to be terrific for those of us selling intellectual capital. It’s also extremely useful for corporations to use as a means to connect with customers and get feedback.”

Finally, a couple of resources to help you learn more about blogs (I recommend both highly).

First, Deb Weil’s “Business Blogging Starter Kit,” available at http://www.wordbiz.com/. Deb is a blogging evangelist, but her kit contains a lot of useful how-to guidance for anyone thinking about starting a blog.

Second, get B.L. Ochman’s special report, “What Can Your Company Do With a Blog." Like Deb’s, detailed, specific, and instructional. Available at http://www.what'snextonline.com/.

Recently Ms. Ochman asked me, “Do you still think blogs are baloney?” I replied: “I never thought or actually said they were baloney. I just said that, as a direct marketer, I don’t think blogging — a medium with unproven ROI and uneven quality — is something we should get excited about, as the blogosphere has.

“I think members of the blogosphere should be applauded for their pioneering spirit … but their evangelical enthusiasm is not yet supported by results.”

I’m still highly skeptical about the whole blogging thing, and I find the majority of blogs to be lacking in quality and content (to be fair, there are many exceptions here). But I do think the topic warrants further investigation on my part, which includes starting my own blog at www.bly.com/blog.htm. I’ll keep you posted and report periodically in this column — and of course, on my blog.


3 Responses to "Blogging redux"

 
Joan Smyth
said this on 06 Apr 2009 7:55:03 AM EST
Bob -
thanks for mentioning Covenant House in such distinguished company as Omaha Steak and Phillips. We do focus on ROI - because it's cash that lets us care fo our kids. And we have been blessed with successful DM program and lots of wonderful supporters. We're keeping an eye on blogs - but you're right - until we can measure the return, how can we devote a large portion of our resources this way.

 
B.L. Ochman
said this on 06 Apr 2009 12:02:46 PM EST
Still blog bashing after all this time, huh bob. i guess you have a new book coming out.

 
Yvonne DiVita
said this on 06 Apr 2009 12:40:34 PM EST
So...quoting something I said two years ago...isn't really fair, now, is it Bob? Here's the scoop - I make a good bit of money blogging. No, I don't care to share how much but it will match your direct mail piece that nobody really reads. Well, 2-3% of people read - and you make a profit for your client.

YOU are not everybody. And, I am not everybody.

Blogs are a tool. They are not the be-all and end-all. It's clear, tho you will not admit it, that direct mail is going the way of the newspaper. Blogs and social media, because of their ability to connect people more personally than a flyer sent in the mail, will continue to grow.

As for blog roi... that's been done to death. If you're not keeping up on that, I can't help you. Blogs do have ROI - just as valuable and important as any DM campaign.

I think your talents are what work for your clients - not the tool you use. And, that's the same result you get with a blog. The tool allows talented people to excel in marketing for themselves and their clients.




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