Did you think that communicating with bloggers of your niche is not a good idea as it will take your blog's readers away from your blog?
If so, you are wrong. The Internet is too vast to be a competition to anyone.
Communicating with other bloggers who blog about similar topics will get you fresh targeted readers to your blog.
There is a term called authority. Linking to similar niche blogs will definitely increase your blog's authority on the topic. If you are familiar with technorati ranking, you will know what I am talking about.
Find blogs of your niche in:
Google and Yahoo groups
Devote a dedicated three hours a week exclusively for propagating your blog.