When a company utilizes a blog for its business, what advantage a blog has? In "Naked Conversation", Scoble mentions that a blog enables two-way communications. Two-way communications are important for business because it is impossible for traditional advertisement to achieve two-way communications. Blog can do both advertisement and two-way communications at the same time. Is there other advantages? Let's think about them.
There are two types of advertisement. One of them is traditional advertisement such as TV commercial and junk-mail. It is "push" style, which means that a company unilaterally pushes its product information to customers. It pushes their advertisement regardless of customer's need. However, such ad started to lose its effect because customers don't want such ad and also technology help them refuses such ad, such as the recorders' commercial skipping function. Therefore, there is increasing need for another type of ads, and it is "pull" style advertisement. Pull style ad supposes that customers voluntarily access ads. Blog is effective as pull style ad because corporate blog will be read only by those who are really interested in that company. It can address to interested customers.
Another awesome thing about blog is good products can be mentioned in customer's blog. It will be a good advertisement because the comment by the users can be more reliable than what a company says. In addition, a blog tends to be read by people who have the similar preferences with the writer. Therefore, it can appeal to new potential customer. A company's good reputation can be spread by word-of-mouth. Moreover, if a blog can get track-back by many blogs, it will be ranked higher in search result.
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How do you create a new customer base with pull-style advertising? If a company used blogs as their only method of advertising, how would they reach new customers? I believe that if a new company were to only advertise to people that were actively searching for their product, they would have a tough time selling their product unless it were a very specialized product. If a new car company set up shop in the US and did not advertise, why would anyone consider their cars? As many ads as there are for Ford, Honda, Toyota, etc on TV and in magazines, why would a car consumer be interested in searching out an "unknown" car company via their blog? I think this pull-style advertising has its place but it cannot be used as the only means of reaching consumers.
For a second thought, I think you have a valid point in that individuals' blogs can be used as positive (or negative!) advertising for a company. I'm a member of an online web forum for my car, an Acura Legend. Whenever a car repair requires a part that must be purchased from a dealer, many forum users call Joe at the Acura dealership in Augusta, Georgia. Because of his support of many early forum users in maintaining and repairing their cars, Joe receives a lot of business that would otherwise go to a user's local dealership. Because of this free advertising the Augusta dealership gets, I know not to purchase from the expensive Chevy Chase Acura in Bethesda.
This type of online advertising can also have a negative impact on business. Now, for example, anyone reading this comment would know that they can get cheaper parts for their Acuras from the Augusta dealership instead of the Bethesda, Maryland, one.
I can also think of examples where blogs and online complaints brought about significant negative publicity for a company. A quick Google search for "ipod nano scratch" found over 800,000 hits. Within two months of bad publicity over how easily scratched Apple's iPod Nano was, Apple began to include a scratch resistant sleeve/case with new purchases. While that didn't address the complaints of early adopters, it eased the complaints with more recent consumers. Also, in just less than one year from the introduction of the 1st generation Nano, Apple introduced a significantly more scratch resistant 2nd generation Nano. I'd like to believe that Apple was paying attention to the online consumer reaction (including on many blogs) and subsequently redesigned the nano to suit their needs.
Hi. Thank you for the comment! For the first comment, I think you're right. Blog can work only as pull-style advertisement, so it is difficult to gain new customers only by blog. If you use blog for gaining new customers, word-of-mouth may be the only way by which you can gain new customers. Therefore, push-style ad is still necessary, but I believe that it will gradually lose effect. I assume that someday, people will only receive ads they want.
As for the second comment, I agree that blog has huge negative and positive impact on business. The point is that what a company does will decide whether blog bring positive or negative effect. If a company sell good products, good reputation will spread through blogs. If a company sell poor products, bad reputation will spread. As a result, customers can easily recognize which is good products.
For a company, blog's development can be problem, but for customers, it will only bring benefit.
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