Over 50% of bloggers attempt to monetize their blog one way or another.   Mostly through Google Adsense ads or similar advertising network.  Blogs provide an interesting avenue to leverage the good will of the blogger with their audience.  Opportunities include:

• Display / Banner ads: You can work with a blogger ad network such as Federated Media to get your display ads on specific blogs or blogs that focus on specific topics.
• Pay per Post:  This is where you pay the Blogger to post your marketing message.  Izea is one firm that facilitates this approach.  Be careful here — think about the quality of the blogger before getting involved with pay-per-post.
• Blogger Outreach:  This is where you or your agency has a relationship with top blogs in a specific category.  For some categories, such as Mommy Bloggers, there are firms that manage this kind of outreach.  The bloggers get products to review, content for their site, coupons, contests and other things that add value to their blog in return for them blogging about your product and service.

Some thoughts on marketing through Bloggers:

• If you’re a direct marketer converting eyes into dollars then take a look at pay-per-post.  Other wise think twice about this approach.
• Know what blogs your messaging will be displayed on.  There are very few top tier blogs in any catagory and a lot of bottom feeders.
• Difficult to scale.  There will be a limited number of blogs generating traffic that targets your consumer.
• If you’re buying key words through Google you are advertising on blogs.  The ads on this site are Google adsense ads (click on one!)

Measuring ROI

Depends on the tactic.  If you are buying display ads all of the display ad ROI measurements apply. If you are paying per post and converting those clicks to sales you have a direct ROI.  If you are doing Blogger Outreach it is a bit more difficult.  I suggest doing the following:

• Use Blogscope.net to measure the buzz around your product or service.  Trend over time to see how your campaign increases the buzz.
• Onlien coupons.  If you are selling a product or service try providing the bloggers with coupons that you can track.  You should be able to track the coupon redemption back to the blogger that provided the coupon.
• Follow up surveys.  See if you can offer a survey to the bloggers readers to measure their product awareness and purchase intent.

The nost interesting thing about blog marketing is that there is a discussion happening right now that most products and services should be involved in.  Bloggers mostly talk about products and services that mean something to them personally or professionally.  For example, I just search Blogscope.net for “High Yield Seeds” — there are 3006 blog posts on the subject.  See if the blogosphere is talking about your industry or brand.  You may be surprised that there is a robust conversation going on.  You should figure out how to be a part of it.  A consistant blogger outreach strategy will allow you to take part in the conversation — and sell more product.