People have always enjoyed sharing their passions, voicing their problems and socialising with like minded groups. We used to chat over the garden fence, complain with letters to the editor and join local clubs. Today, increasingly, we turn to blogs, video-sharing and other networked media when we feel the need to connect. 
The ability for a company to connect in this world is increasingly valuable in the following areas:
1) Speak To Your Audience - Direct, ongoing contact with key customers, prospects, influencers and stakeholders.
2) Market Insights - Blogs allow you to listen to real people discussing your brands and marketplace.
3) Credibility & Trust - When handled correctly blogs create brand trust and relevancy.
4) High Visibility & SEO - Better 'natural' performance in search engines.
5) Easily Measured - Traffic, visitor activity and feedback can be measured easily.
6) Easily Integrated - Blogs can be easily incorporated to support existing web, PR and marketing activity.