Exploring Second Life and other virtual online spaces

The previous chapters in this Buzz have offered advertisers examples of how they can embrace user-generated content using interactive elements based in the real world. There are however millions of consumers immersed in an alternative word; interacting, creating whole new personas even purchasing clothing, vehicles and soft drinks for their online selves. The popularity of these creations is such that commodities are changing hands in a parallel market for large sums of money. Marketers are also beginning to realise that these worlds open up terrific communication channels with their consumers and can encourage unrivalled dwell time with their brands. Social gaming has opened up whole new galaxies in which you can extend your marketing, and advertisers now have to target their consumers’ Second Life. We are, of course, speaking virtually.

There are now nearly 10 million broadband homes in the UK (ONS Omnibus survey 2006) and it is these high speed internet connections that have provoked the diversification of PC and console gaming. What once was an activity solitary in nature is becoming increasingly social. Where social gaming has become most pronounced is in massively multiplayer online games (MMOG) or either of their sub-categories massively multiplayer online role playing games (MMORPG) or massively multiplayer online social games (MMOSG). MMOG games create virtual worlds and communities, where vast numbers of players socialise with one another.

What is Second Life?

Second Life, one of the most popular and fastest growing synthetic world, is blurring both the boundary between the virtual and real worlds and the line between what is a computer game and what constitutes a social networking site. Even though you are controlling a character in a virtual world using your PC, Second Life is not viewed as a game. It is closer in resemblance to networking sites such as MySpace and Bebo, it enables users to meet and interact with people and display their talents. It has even been touted by the BBC as the beginnings of web 3.0; “a 3D collision with the collaborative, social aspects of Web 2.0.”

With a population of more than 1.1 million, Second Life is fast becoming a phenomenon and it is still growing at about 38% every month according to its creators, Linden Lab. It is also turning the stereotypical image of those who visit virtual worlds on its head. Females make up 36% of the residents of Second Life, but account for 44% of the usage hours. The median age is 31, according to Linden Lab CEO Philip Rosedale.

Enterprising residents of Second Life design buildings, clothes and objects that will aid people during their stay within the world and can make a healthy profit doing so. The Linden dollar currency within the game can be exchanged for real money. The Observer recently reported that more than 3000 residents earn real money from Second Life. The richest avatar owns a property empire worth $250,000 and employs 17 real-life people. It’s not just real estate where money can be made either. The BBC reported that one player earned as much as $70,000 a year creating clothes for female avatars. It would appear the same desires to dress well and look one’s best exists within virtual environments as within the real world.

But it isn’t just the subscribers to Second Life who are recognising the potential riches that it offers. Marketers are becoming more and more creative in the ways they are incorporating their brands within synthetic worlds and are tapping into how powerful advertising and promotion within Second Life can be.

Tom Hosking of IGA Worldwide presented at an IAB seminar on in-game advertising earlier in 2006. He identified a number of reasons why it’s now a successful marketing medium, with the potential for phenomenal growth. There are examples within Second Life of many of the points he raised:

1. Realism

Advertising has become such a common sight in the real world that synthetic worlds would look strange without it. A recent survey from Nielsen Interactive Entertainment revealed that 70% of gamers actually liked in-game product placements as it made the online worlds more realistic. Entire replica stores are springing up within Second Life. American Apparel, Adidas and Nissan have all made a move into the virtual space.

David Fickling’s Media Week article from September 2006 notes how within the game Second Life a game player has created a Coca-Cola and Red Bull vending machine, completely independent from the brand owners, just to add realism to the virtual world.

2. Non-interruptive

Of course the main benefit of a carefully executed virtual presence is that it can be welcomed and engaged with, rather than negatively impacting upon the user experience. One of the main attractions of a virtual world for its visitors is that they can escape the real one… If they are confronted with messaging at every turn they may soon decide to stick in the offline world.

If a marketer was to build a virtual store within a synthetic world for example, consumers can chose whether or not they wish to enter and interact with virtual versions of real products. The challenge for marketers is to come up with something interesting, original and functional that benefits the consumer during their time in Second Life.

3. Engaging

"The killer benefit of gaming is attention," Jean-Paul Edwards, the head of media futures at Manning Gottlieb OMD told Campaign magazine recently, "We live in a multimedia world and you can't guarantee people will take any notice of your TV ad, but gamers have to concentrate on what they're doing, or their character dies. Your message is much more likely to get through." OK so your avatar won’t actually die within Second Life (unless you want them to?!) but the fact that the consumer is immersed within this world controlling their character, means they are alert to the world and brands around them.

Multiple niches are opened up to advertisers. The fashion conscious players of Second Life are able to visit a virtual establishment of the American Apparel high street clothing store, ensuring they have the best dressed avatars. Record companies are also putting on ‘virtual listening parties’ where gamers can take their characters and hear exclusive playbacks of new albums. Warner Bros recently showcased Regina Spektor’s new album in such a way. Nissan’s recently debuted presence in Second Life includes race courses and stunt areas over a number of connected islands. The focal point of their presence is a building-sized Nissan vending machine that shoots out cars as if they were cans of soft drinks.

All of these are examples of contextual advertising, where avatars try out virtual products, and marketers hope their real life counterparts will invest in the products offline. In a fun and immersive way Second Life residents are able to engage with real world brands, on their own terms.

4. It creates huge levels of recall and awareness

Not surprisingly, if brands are contributing positively to the Second Life experience, adding realism and provoking engagement, the levels of recall and awareness are high. Some results from the traditional computer games world reveal that Cingular achieved a 69% unprompted recall of their placement after appearing in ‘Need for Speed Underground 2’ (Nielsen). And ‘Flash Car Wash‘ benefited from a 60% increase in awareness after appearing in London Taxi (Nielsen).

5. Has positive effects on purchase intentions

So what about the big question: Are residents of Second Life more likely to buy having interacted with a brand or seen a placement within their visit to the world? Looking again at figures from the computer games world, the answer is a resounding, yes! 65% of American Wasteland players would consider eventually buying a Jeep (Nielsen) after that vehicle featured in the game. Nissan are looking for similar levels of purchase intent with their presence in Second Life. David Fickling of Media Week believes the trick for marketers is to take advantage of the “shadow consumer” – the character within the game – and the relationship with the real-world consumer who plays the game. “Someone who visits a Starwood hotel or Amazon bookshop within Second Life, or uses a McDonald’s outlet or Intel computer within the Sims online, might be more likely to visit their real-world equivalents.”

The Second Life environment is an area of the social networking boom where the consumer is being most creative with the content they are generating. Justin Bovington of Rivers Run Red, an advertising and events company that works in Second Life, recently told the BBC that Second Life could be the killer application that broadband has been looking for. He put its appeal down to the fact that; “the collaborative space is so social and creative." Any advertisers considering moving into the virtual space needs to approach their presence with the same values front of mind. The synthetic space offers terrific opportunities for marketers to be experimental. If something new, interesting and engaging is offered, Second Life residents will welcome it and tell their friends. Virtual or otherwise.