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Virtual worlds may sound like a sci-fi concept, but they are rapidly becoming the place to be for young people in love with these 3D Internet landscapes. A cross between gaming and anime, virtual worlds such as There.com, Second Life, and Cyworld are emerging as places not only to create and hang out as an altar-ego avatar, but to engage in good old-fashioned commerce as well.
These elaborate websites are usually free to join, but—just like in the real world—it costs money for clothes (to dress your avatar), for land (to build on), furnishings (to decorate your virtual pad), and even vehicles (to drive—while hopefully avoiding virtual traffic jams).
There.com, Second Life, and Cyworld each has its own official currency (Therebucks, Linden Dollars, and acorns, respectively) that are backed by money from our world. Lest you think this isn't a sophisticated economy, there are even real exchange rates for Linden Dollars that fluctuate based on trade, and real businesses to buy and own such as a nightclub or a trendy clothing boutique.
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Originally intended for a tech-friendly crowd in their late 20s to early 30s, There.com has ultimately wound up with a user base skewing younger: 13- to 26-year-olds who have latched onto the social networking phenomenon. Second Life, on the other hand, is attracting users more interested in creating a persona that diverges greatly from their real-life one. (Under-18 users have their own version called Teen Second Life.)
Not surprisingly, brands of various sorts are diving into these new interactive worlds hoping to capture tech-forward audiences with non-traditional marketing. The result is a chimera of computers, entertainment, and brand building.
"By being three-dimensional and interactive, brands can move past the 'show me' paradigm of other media and get into the 'touch me' world of true interaction, which offers significantly more bandwidth for communication and for the transference of brand attributes," observes Jennifer McLean, director of marketing for Double Fusion, an in-game advertising company.
While micro "grassroots" brands are plentiful thanks to virtual-world entrepreneurs selling their wares to other virtual-world residents, adidas was the first major brand to present itself within Second Life. The global sports-gear brand not only has its own virtual store but also a product stocked within. The a3 Microride shoe is designed to fit avatar feet perfectly, giving him/her/it a walk with "bounce and flexibility" for a mere 50 Linden Dollars (approximately US$ 0.19).
The advent of adidas inspired other brands to take the plunge. Nissan, Scion, and Pontiac are a few real-world car brands with virtual dealerships. Ranging from fantasy, customizable cars costing a little over a (real) buck, such as the Pontiac Solstice GXP or the Scion xB Monster Truck, to virtual Sentras that Nissan is handing out for free, the brands are able to benefit from a whole new realm of viral and experiential marketing.
Ad agency Leo Burnett Detroit partnered with viral marketing agency Campfire to create the virtual Pontiac presence and campaign. "Everyone assume[s] that if a user is excited enough to purchase a virtual version of a Pontiac, that might be something that rubs off in real world," says a Leo Burnett spokesperson.
The spokesperson adds that the Pontiac experience on Second Life has been so positive that it inspired the legendary ad agency to twin itself in the virtual world as the "Leo Burnett Ideas Hub."
So far, the business media has applauded these efforts. As Claire Beale commented in her column on advertising in The Independent, "The idea is to create a global creative community where creative ideas can be shared and briefs honed. It's a neat alternative to the usual company intranet and gives Burnett the option to leverage any commercial opportunities that might come out of the Second Life economy."
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Meanwhile, Bartle Bogle Hegarty, a hip niche ad agency based in London (and in which Leo Burnett Group owns a minority stake), is already living large in Second Life. The group worked with virtual-world design agency Rivers Run Red (the same folks who designed the adidas Second Life City shop) to design the BBH virtual office.
In addition to consumer products, entertainment brands are filling the virtual stages—from band brands such as Jay-Z, Duran Duran, and U2 performing "live" to the BBC Big Weekend pop festival simulcasted to almost 6,000 virtual concertgoers. MTV News is even on hand to cover concerts. It's reported that the BBC has rented a virtual island on Second Life to promote new bands this year.
While the possibilities seem limitless, the new virtual territory is not without its limitations. Technical snafus such as sound lags from live concerts and the number of avatars that can congregate in one "space" (the Pontiac-sponsored Jay-Z concert in Fall 2006 could only have 100 avatars in attendance on its Second Life Motorati island) make seamless entertainment for the masses a challenge. Über-growth of virtual populations has contributed to the tech glitches, sending Second Life (like its real-world civic contemporaries) into fixit mode.
Muggings may be nonexistent in virtual worlds, but crime by software is not. Renegade software programs that illegally clone animated items on Second Life City have emerged, leaving some brand owners fearful that their virtual intellectual property will be stolen. The Washington Post reported in late December 2006 that "software designers and lawyers are straining to define property rights in this emerging digital realm."
And then, of course, there is the question of just how far virtual-world residents themselves will allow branded consumerism to flourish. If residents are moving in to experience an out-of-their-world experience, is a virtual iPod really necessary? Perhaps when luxury brands get in on the act, a pair of Gucci avatar sunglasses will be. [12-Mar-2007]
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Alycia de Mesa is a brand identity consultant and writer with over 10 years' experience, from Fortune 100 to start-up companies. She is author of Before the Brand, the definitive brand identity handbook, published by McGraw-Hill (under the name Alycia Perry).
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