No question about it--blogs can generate revenue. Some professional bloggers have been able to quit their day job with earnings from contextual ads, affiliate programs, podcasts, and other blog monetization programs.
But the goals of a professional's blog may differ from those of a company's blog. Advertising may or may not fit in. Here are some questions a company should ask before embarking on a monetization program.
1. How does advertising fit with my industry? What will my customers think? Readers of a resort blog will welcome advertisements--if they're planning a trip, they want to know what tourist attractions are nearby. Readers of a clothing store blog might be indifferent to ads, but expect them. But supposing the business is a law firm, a medical practice, or a software engineering firm? In these cases, advertising might seriously reduce the credibility of the firm.
2. Why are readers visiting the blog? If the company's blog is designed for customer service support, displaying ads is risky. If a customer has a serious problem, he/she probably isn't in the mood to read a banner ad. (This is why advertising messages on customer service phone-hold recordings often backfire.) On the other hand, if the blog is designed to be a source of product/industry information, advertising in any and all forms might be part of the attraction.
3. Is now the right time? For monetization to generate material revenue, the blog must have a big audience, a passionate niche audience, and/or a high-income audience. Cultivating an audience takes time. And, as a blog develops, it frequently changes focus. Generally speaking, it's better to wait for the blog to find it's place in the market before trying to capitalize on its place in the market.
Blog monetization can also be indirect. Start by directing readers to special offers on the main company Web site, or offering short, downloadable podcasts for free. If the results are positive, take the next step and publish a few ads.
