Blog readership is anticipated to grow steadily over the next several years. Today, 113 million U.S. internet users read blogs on a monthly basis. By 2014, it is estimated that this number will grow to 150 million (eMarketer). Given the current and future prevalence and readership of blogs, marketers have zeroed in on bloggers as potential beacons of earned media. With marketing efforts increasingly centered on blogs, whether internet users trust bloggers and why has become increasingly important.

Research conducted by Invoke Solutions found that individuals with a handful of tightly knit fans, friends, and followers (57 percent of the sample) are seen as more influential than individuals with thousands (36 percent), and millions (8 percent) of friends, fans, and followers. This finding highlights the importance of relationship quality over quantity. U.S. frequent users of social media indicated they are more likely to completely trust blog posts written by friends than Facebook posts or tweets written by friends.

Looking at blogs specifically, the Invoke Solutions study found that 64 percent of U.S. frequent social media users completely or somewhat trust blog posts by someone they know, and 22 percent completely or somewhat trust blog posts by someone they don’t know.  According to eMarketer, nearly half of online adults who read blogs trust the information provided by blogs and a little less than half would recommend a product or service based on a blog post they read. Technorati’s State of the Blogosphere 2010 found 42 percent of bloggers have written positive or negative posts about brands. Thirty-three percent of bloggers indicated having been asked by a brand to review products.

So, do people trust bloggers? The answer is: It depends. If bloggers have succeeded in cultivating close and engaging relationships with their audiences, their audiences are likely to take their word when it comes to recommendations and opinions. Brands should seek to form enduring relationships with bloggers that have demonstrated the ability to consistently engage a close knit audience. Brands should also strive to only collaborate with bloggers in ways that complement the blogger’s area of expertise. After all, a mountain biker blogger’s audience is unlikely to trust this blogger’s opinion on the nutritional value of a given dog food, no matter how strong and devoted his or her following.

Crowdsourcing, a term coined by Jeff Howe of Wired magazine in 2006, has become a popular approach for brands looking to harness the creativity of consumers. From brand identity and marketing to product innovation, brands are experimenting with different ways to engage consumers’ imaginations.  Below is an overview of three successful and not so successful examples of how brands are using crowdsourcing.

Nissan Leaf: Crowdsourcing Fuel Efficiency

The Nissan Leaf Carwings technology allows users to chase driving efficiency by connecting the Leaf’s car navigation system to mobile phones. Pooling real time information provided by users, Carwings’ Fastest Route Guidance System helps drivers take advantage of environmentally friendly driving routes. In addition, Eco-Driving and You tracks user’s fuel efficiency data and ranks drivers accordingly by region. Using this data, users are awarded medals, based on fuel efficiency, that are displayed on the Carwings user’s dashboard effectively turning eco-awareness into a social game.

Philadelphia Cream Cheese: Crowdsourcing Culinary Creativity

Famous decadent treat creator Paula Dean teamed up with Kraft to spearhead the Real Women of Philadelphia campaign promoting Philadelphia Cream Cheese. Leveraging a pre-existing online community of bakers, participants were asked to invent tasty recipes using Philadelphia Cream Cheese. Exceeding all expectations, Kraft’s campaign erupted into a network of over 30,000 bakers contributing creative recipes utilizing Philadelphia Cream Cheese. The outcome? Awesome recipes and boosted sales of Philadelphia Cream Cheese.

Gap: The Logo Debacle

In October 2010, Gap put crowdsourcing to the test by asking for a “more contemporary and current” logo. Upon releasing the newly selected logo, Gap was subjected to a social media storm of general dissent and unhappiness. In an effort to rebuild burned bridges, Gap used Facebook to thank consumers for the lively debate sparked by their new logo and requested submissions of additional ideas for a logo concept, which, unfortunately, caused even more debate. In the end, Gap scrapped its new logo and returned to the old.

So what lessons are to be learned from brand crowdsourcing efforts thus far? First, crowdsourcing represents an excellent opportunity for brands to pool the creative resources of the masses, engage consumers, and, by asking consumers to actively participate in building the brand, build brand loyalty. Second, it’s important to carefully consider what you chose to crowdsource. The Gap fiasco teaches us that crowdsourcing a longstanding, well-recognized, core element of your brand identity is a risky move. Finally, crowdsourcing offers your brand the opportunity to find and engage influential consumers online, as these individuals are likely following your brand’s online activity and crowdsourcing initiatives. Leverage the input of an existing influencer and their online community; they have a deep understanding of the needs of your target audience, and their words can win over more customers than yours.

The power of word-of-mouth marketing (WOMM) is no secret. Though well-known, tapping into this marketing mega-power is a tricky business. But if the marketer masters this 6’5’’ 320 pound quarterback, they can win the game of influencing consumer decision-making. Let’s begin our journey to WOMM mastery by tackling what WOMM is and what it isn’t.

WOMM is not viral marketing (Gasp! Yes, I said it!). Though both fall under the umbrella of earned media, and many consider viral marketing to be a subcategory of WOMM, these marketing strategies may be easily distinguished based on the nature of their messages. Viral marketing is the rapid dissemination of an asset (e.g., a video created by a brand – Think Old Spice Guy) through social media in order to increase brand awareness. Conversely, WOMM begins with a consumer’s decision to recommend a place, product, or brand based on past positive experience. This piece of information (e.g., a restaurant recommendation from a friend) may be shared from person to person in the real world, or through digital avenues like a blog, Facebook, Tumblr, or Yelp. The fundamental difference lies in what is being shared: For viral marketing, it is an asset. For WOMM, it is a piece of information.

Now that we know that WOMM is not viral marketing, we can begin to focus on what it is. Just like any good coach would want to know more than just the height and weight of his star quarterback, let’s dive into the nitty-gritty details of WOMM. Ready? Here we go: +/- Spontaneity +/- Contagion =/≠ Unpredictable.

Let’s break that formula down. First, WOMM contains elements of contagious spontaneity that make it unpredictable. Take the rumored effects of the Green M&M. During a recent keynote address, Jim Cass, Mar’s Direct’s VP and GM, admitted that the buzz surrounding Green M&Ms was not generated by the brand, but by the consumer. The deliciously naughty reputation of the Green M&M grew its WOMM wings and flew. Spontaneity + Contagion = Money in the bank for Mars. Second, in order to generate WOMM, a product or service must make a strong impression on the consumer. This is where your muscular quarterback can either carry you to greatness or get sacked. If the consumer has an exceptional experience, and decides to talk about it, then BAM! – you’re golden. But if the experience is exceptionally bad, and the unhappy customer decides to talk about it, then BOOM! – you’re done; pack your things and go home.

Think about it this way: When you recommend or advise against visiting a particular restaurant or using a certain product, you’re staking your reputation on the accuracy of your recommendation. Therefore, when you decide to share a recommendation with friends, family, or coworkers, you’re fairly certain that your advice is correct. In fact, not only are you confident in your recommendation, but you’re also likely passionate about the product, service, or brand you’re evangelizing. Think about things you’re passionate about. I’m passionate about garden gnomes and Thai food from Marnee Thai Restaurant. What do I talk about a lot with a lot of different people? My extensive garden gnome collection and the best place to get Thai food in San Francisco, which is Marnee Thai; I’ll stake my reputation on it.

Now, consider the weight behind your decision to provide a recommendation; the front-end impact is three-fold. Forrester Research analyst Augie Ray laid out some interesting stats:

• 73 percent of online US adults trust recommendations provided by friends and family.
• 65 percent trust email recommendations from people they know.
• 62 percent trust consumer product reviews and ratings.
• 57 percent trust expert reviews and ratings.

Hopefully, at this point, the psychological fuel behind WOMM’s fire is becoming more transparent. Now it’s time to get muddy again. In WOMM, humans are your medium, your greatest most unreliable walking, talking ads. This third element of WOMM makes the second especially difficult to gauge. How strong does your impression on the consumer have to be? The answer: You’ll never know. In a nutshell, WOMM is exactly as I said: +/- Spontaneity +/- Contagion =/≠ Unpredictable. Clear as mud, right? With the odds so clearly stacked against you, how can you ever hope to harness the raw power of your super-human star quarterback and channel it towards scoring game-winning touchdowns? Thankfully, there are ways to leverage WOMM while minimizing risk to your brand. BUZZ WORD ALERT! Tap the keg of online influence (For more on the nature of influence, check out Robert Cialdini’s The Art of Persuasion and Malcolm Gladwell’s The Tipping Point).

Recently, influence has become “the new black,” and not just among digital marketers. Scores of influence measuring tools have popped up measuring online clout, especially on Twitter (e.g., Klout, Twitalyzer and Tweetlevel). So, when it comes to marketing, how does this whole influence thing work? Influence marketing centers on finding influential consumers within specific verticals, or categories, like travel, food, pets, fashion, or parenting. Influencers have the potential to achieve excellent online reach within their category by hosting a popular blog, boasting an impressive following on Twitter, or maintaining a freakin’ sweet presence on Facebook. Suppose one of these influencers, also known as demi-gods, decides to share a positive brand experience with his or her audience. BAM! The positive word about your brand spreads rapidly due to the sheer quantity of the influencer’s relationships. The impact of the message, however, is determined by the quality of the influencer’s relationships. With sizeable audiences who trust their advice, these thought leaders can make or break your brand. Ignore influencers at your brand’s peril!

Not shockingly, marketing activities are geared towards these influencers because they hold tremendous sway over the opinions of their audiences on everything from what skillet to use for cooking jambalaya to whether denim vests will, or will not, be making a comeback in the spring of 2011. Let’s run with this denim vest example for a moment. Suppose you subscribe to a popular fashion blog called Kate Knows Clothes, and Kate has just written a blog post about the inevitable comeback of the denim vest this spring. What do you do? First, you jump in your car and race to the nearest Goodwill to sift through neglected denim vests left over from the ‘80s, and then you…tell someone. Why? Because you trust the source and feel confident in reiterating Kate’s prediction to friends, family, or coworkers. And here’s the last piece that will really make your quarterback shine like the star he is: How you “tell” your friends, family, or coworkers about Kate’s prediction has changed dramatically since the last time denim vests were in, and lends itself quite nicely to the rapid perpetuation of Kate’s prediction. Ah, social media, we bask in your glory.

So, to sum it all up, influence marketing can help reduce the messiness and amplify the impact of your WOMM efforts, but it’s not easy. Brands must understand where influencers are coming from, they must form long-term, two-way lines of communication with them, and they must give them good reasons to advocate for the brand. If you go about influence marketing the wrong way, you could risk injuring your valuable quarterback during the first game of the season.