This is my first time cleaning up a scratch.  And it looks like a big blob.  How should I blend this in?

You can smooth and shine the area with rubbing compound.

Please see: https://www.paintscratch.com/touch-up-paint-directions/paintpen.htm

Very Important!
Do not depress the paint pen directly on your vehicle. To start the flow of paint, gently tap the paint pen on a hard surface to start the paint flowing. Make sure you shake the paint pen thoroughly. If you push and hold the paint pen down, all the paint will flow out of the tube creating a mess! If you have never used the paint pen before, just go slowly and keep practicing depressing the nib on the end until you can control the paint flow. Wipe of the excess paint before applying to your vehicle.

Quick Steps-Paint Pens
1) Clean the area (soap and water or wax and grease remover)
2) Apply very thin coats of basecoat.
3) Apply Clearcoat over the basecoat.
4) Use Rubbing Compound (apply with clean soft cotton only, paper products will scratch your paint surface) to smooth and shine the area. Always test the rubbing compound on your vehicle in an inconspicuous place to check for surface compatibility and shine.
5) If this is your first time, try one small chip from start to finish before repairing other areas.

ok I tried using a rubbing compound but I've noticed no real improvement.  I'm guessing that's because I'm not doing it correctly.  how hard should I be rubbing it in?