Blog Bucks: FastLane Blog Investment Pays Off for GM

[Ming]

Interesting report. Wonder how much GMInsidenews.com "helps" GM out in this regard? - Ming

Corporate blogging pays for GM

By Staff writers, TechWeb


29 January 2007

General Motors' auto business hasn't been great of late, but its blogging strategy is paying off handsomely.

In 2006, the company's FastLane blog delivered an estimated US$410,470 worth of customer insight and marketing at an approximate cost of US$255,675 - a return on investment of 67 percent - according to a newly released report from Forrester Research.

Li and Stromberg concede that it's difficult to calculate the ROI of blogging accurately, noting that indirect benefits can be hard to measure. "How do you assign a dollar value to the ideas sparked by a Web dialogue between an executive and a company's customers?" they ask.

And when you do assign a dollar value, as Forrester did in the case of GM, it's difficult to be sure the value is fair. Take the imputed value of the FastLane blog, which is based largely on the assumption that press coverage of the blog is worth what it would cost to buy an ad in the publication where the article appeared. That may be an inflated estimate if, as research firms such as Outsell have suggested, print ads are overvalued compared to online ads today.

Moreover, given that Forrester's estimate of GM's 2007 blog ROI will drop to 39 percent in 2007 - mainly the result of diminishing novelty and press interest - there's an argument to be made that companies should leave blogging to those employees who do it out of passion and off the books, rather than spending hundreds of thousands of dollars on enterprise blogging tools.

Source: http://www.itnews.com.au/newsstory.a...&src=site-marq

[howpeculiar]

I like that blog overall. It does give you a fair shot at maybe getting some important people to hear what you like/dislike, and to give them you ideas. I don't know that Bob and everyone read every comment, but I do post my thoughts there from time to time.....

[ZvetteGuy]

it's becoming more of our company when we get to have some say so and input about future products...

not a bad idea....

[Ming]

We get quite a few notable folks from around the web visiting and posting here at GMI regularly (Ray Wert of Jalopnik.com, Buickman, Mr. TrueDelta.com to name a few), but I could probably count on one hand the number of times a GM Exec or someone who works with them has posted here directly and openly (we've had interviews - not frequently, but we've had them) --- that is, unless they are here under an alias.

Would be nice to have more GM guys speak up here, but then perhaps they would feel that they are somehow tainting the discussion and prefer to come here or have their "people" come here (if they're to busy to deal with GM fan blogs like GMInsidenews) and observe / lurk.

I find it hard to believe that the big guys at GM who watch the FastLane Blog are oblivious of GMI at this point.

[GM-Joe]

$255,675 is a little bit much for a web site; doesn't GM have any programmers sitting around or anything?

I'll do it for them for a tenth the cost, with BI Reports!

[01cavalier]

The blog is a good thing, it is one of the sites I check daily. They do need to use it more, and use it better. This would help keep attention on it, especially in the media. I would prefer that they combine all 3 of the GM blogs into one though, it would make a lot more sense to me.

[bcjohnso99]

Originally Posted by GM-Joe

$255,675 is a little bit much for a web site; doesn't GM have any programmers sitting around or anything?

I'll do it for them for a tenth the cost, with BI Reports!

Still have to pay people to read it and create content for it.

[GM_Fanatic]

Question:

How much money did they invest to research how much money they saved?

[mkaake]

Originally Posted by Ming

Interesting report. Wonder how much GMInsidenews.com "helps" GM out in this regard? - Ming

To be honest, I'd say this site hurts GM more than it helps, most of the time. The negativity around here seems to be at an all time high...

Just my honest opinion...

[markusername]

I don't even bother with the GM Blogs site. It's nothing but corporate spin. I much more prefer this site (GMInsidenews).

Here you get a variety of opinions from all sides. The GM Blogs site is so full of corporate spin that the one or two times i visited i almost wanted to puke. Full of 'all our stuff is the best', the 'aztec is gods gift to mankind' kind of junk. I once posted an alternative opinion which was immedietely deleted (even though I proved what the blog had said was false).

At GMInsidenews you get the variety of opinions and no one is censored except for obvious idiots who just want to troll.

I think this site does more for GM than the Blog does times 100.

Keep up the good work at GMInsidenews. I appreciate the fact that on this site you can hear all sides including what the import fans have to say. It adds to the discussion.

[Ming]

Originally Posted by mkaake

To be honest, I'd say this site hurts GM more than it helps, most of the time. The negativity around here seems to be at an all time high...

Just my honest opinion...

I would have to point to the time when talk of GM bankruptcy was rampant as the the most negative. Summer/Fall of 2005? But that has to be expected to some degree from a fan forum.

For now, GM's product strategy at least has me enthused. General negativity for Detroit brings all of the the Detroit 3 down, but GM seems the best off and I think that's reflected in the posts here of late.

[69Firebird400]

I think the Fastlane blog has helped executives - especially Bob Lutz - get the message out with regard to future product plans and management's take on things. However, I wonder if the $255,675 includes the cost of Bob Lutz's time when he writes posts for it. Could that time be better spent further improving the product lineup? Hmm...

[Ming]

Originally Posted by 69Firebird400

I think the Fastlane blog has helped executives - especially Bob Lutz - get the message out with regard to future product plans and management's take on things. However, I wonder if the $255,675 includes the cost of Bob Lutz's time when he writes posts for it. Could that time be better spent further improving the product lineup? Hmm...

Bob writes there infrequently at best. Its usually some exec from somewhere in GM. The worst was when it started becoming the GM NASCAR blog a while back... It was updated frequently, but 2 out of 3 posts were NASCAR-related. Glad that stopped.

[Cortazzo]

I really like the fastlane blog. I bet that a big reason behind GM increasing their powertrain warranty was from the constant badgering from posters at the Blog clammoring for a longer warranty to back up GMs faith in their products. And to be quite honest, the input they get from the Blog is worth more than some consumer clinic, more honest and to the point.

[GM-Joe]

Originally Posted by bcjohnso99

Still have to pay people to read it and create content for it.

There isn't that much to read, integrate it into the marketing dept.

They probably paid a vendor to make it and maintain it, more wasted money.