Just thought i'd share this since i had use for it today.
If you want to use 7-zip to compress a bunch of FOLDERS, each to their own compressed archive, use the following as your commandline:
C:\Program Files\7-Zip\7z.exe a -r "%2.7z" "%2"
or for zip format: C:\Program Files\7-Zip\7z.exe a -r "%2.zip" "%2"
And set your options to "Allow dropped folders" in top right if not already set.