Virtual Mc Insight Final Version

Marketing in Second Life and Other
Virtual Worlds
October 2007

© 2007 Media Contacts :: Havas Digital

Lead Contributors

TS Kelly
SVP, Director of Research and Insight,
Media Contacts Global
ts.kelly@mediacontacts.com

Anthony Rhind
Chief Strategy Officer,
Media Contacts Global
anthony.rhind@mediacontacts.com

If you want to receive the MC Insight periodically, please subscribe to
mcspeaks.mediacontacts.com

1

Contents

3
1. Introduction
5
2. What really is Second Life?
10
3. Other Virtual Environments
14
4. Early Marketing Efforts
23
5. Virtual Marketing Challenges
30
6. What’s Next for Virtual Worlds?
35
7. Final Comments
36
8. Suggested Resources and Reading
37
9. Endnotes
38
10. Glossary
40
11. Contact us

2

1. Introduction

In October 2007, Linden Labs’ virtual online community Second Life welcomed its 10
millionth resident to its service. Its unprecedented growth over the past 18 months has
vaulted this little-known San Francisco firm to the front pages of Business Week, Wired,
MIT’s Technology Review and a host of other ‘physical’ publications worldwide.

There has been some recent backlash, however, with some journalists writing that most
of Second Life, especially areas developed by brands, is deserted. It is ironic that such
an article would appear in an issue of Wired (August 2007), a usually tech-progressive
publication. It is a serious point we will consider later when discussing how brands should
take advantage of virtual environments. However, Media Contacts feels that dismissing
Second Life and similar virtual services outright as nothing more than hype would be
missing the point.

To the uninitiated, Second Life may seem more like a geek haven than a thriving virtual
community. In some ways this skepticism echoes comments made in the early days
of the commercial Internet in the mid-1990’s. Three years ago it may have been fair
to generalize that virtual environments were the preserve of a niche group comprising
only gamers and hardcore techies; today Second Life has become, arguably, a leader
in the rapidly growing area of virtual communities and the poster child for a new wave
of metaverse-related products and services with a much broader demographic and
behavioral appeal.

Though Second Life (and similar platforms) may never reach
‘mass market’ status, the service has quickly become an intriguing
opportunity for marketers to better understand how to interact
with consumers within an immersive ‘virtual’ 3D environment,
also known as a metaverse. Active users within Second Life
are not only exposed to marketer brands and messages but can
also choose to engage through exploration, dialogue, testing,
customization, games and other forms of interaction. Second
Life may also represent a critical early learning environment if,
as we feel will be the case, ‘web 3.0’ in fact turns out to be
‘web 3-D’ … A topic we will consider within the scope of this MC
Insight.

Several marketers have already taken the plunge into Second Life (including a number
of high profile initiatives by Media Contacts clients - Sears, Citroen and Lacoste). Retail
companies have been most active, creating virtual consumer spaces as they would ‘real
world’ consumer environments. Automotive firms such as Nissan, Peugeot, Pontiac and
others have created virtual showrooms providing Second Life residents test drives and
virtual ownership of their latest models. Adidas and Reebok offer virtual pairs of running
shoes. Dell welcomes users into a virtual factory to customize their own PC for delivery
(and purchase) in the real world. Sears allows customers to explore a virtual department

3

Introduction

store, letting users in one area to design their own ‘dream’ kitchen. Even Starwood for a
time had a virtual hotel, aloft, in which residents could explore, experience and add input
on the future design of the new chain well before its physical launch in 2008.

Recent academic research querying existing Second Life users suggests that virtual
environments may help promote communication, collaboration and cooperation.1 Though
still too soon for marketers to take full advantage of these positive user perceptions,
early virtual advertising efforts may offer some positive impact on brand recall, affinity
and purchase intent.

Media Contacts, working with our network of offices and clients worldwide, has already
utilized Second Life within a broader communication plan and also as a standalone tactic.
To ensure we understand the impact of these actions we have and continue to undertake
research into the consumer perception and usage patterns of this emerging platform.

Our goal has been and continues to be - working towards an understanding of the
marketing potential & acceptable process for commercial communication. Though virtual
environments such as Second Life are still in their infancy, our efforts thus far suggest
that marketers should consider a very limited exposure to virtual environments in the
near term. Consequently, expectations on performance should also be limited as these
services will likely not yield mass-media performance for at least a number of years (if
at all). In the meantime, however, Second Life and similar virtual communities offer a
robust environment for trial and testing.

To share some of our initial experience with Second Life and other virtual environments,
Media Contacts has produced the following MC Insight to help
marketers decide if virtual environments should be incorporated
into their future digital media plans.

We would be delighted to discuss individual business issues
opportunities, whether you are already a Media Contacts client or
simply just interested in a more case-specific perspective. Please
contact your Media Contacts Account Director, or either author
to find out how Second Life and other virtual environments may
play a role in your overall marketing plans.

4

2. What really is Second Life?

2a. The Basics
Simply stated, Second Life is an online virtual world (or metaverse) in which user-
generated 3-D personas, called avatars, interact, participate in group activities, create
and trade items (virtual property) and services from one another. 2

Virtual worlds such as Second Life offer a unique combination of characteristics
– gaming, community, and user-generated content. Together they offer users nearly
infinite opportunities for expression, exploration, association, collaboration and social
interaction.

The gaming component in Second Life is not unlike other existing MMOG’s (massively
multiplayer online games) such as Blizzard’s World of Warcraft or CCP’s Eve Online in
which users create an avatar and interact with other players in tandem or in competition.
For example, users in World of Warcraft and similar games combine their unique talents
to perform specific scripted tasks such as slaying dragons or defending a village from
attack, a key distinction being the range of behavioral options is structured to reflect
game objectives. Second Life offers similar, but widely un-structured and un-scripted,
opportunities to interact with other users in a whole range of virtual game-like activities
from war games, fencing, skydiving, role playing, or kart racing to more cerebral pursuits
such as trivia, debating or even 3-D board games.

The community aspect of virtual environments is a natural extension of other popular
social networking services such as Facebook or MySpace. In Second Life users can
interact with people with similar goals or interests by joining virtual clubs or academic
groups and sharing experiences or chatting (text or voice) in virtual meeting places.

One major distinction between ‘real life’ social networks such as Face Book or MySpace
and similar connections in Second Life, many users in virtual environments choose to
keep their virtual and real lives completely separate (actually living two distinct lives).
An indication of this clear separation between the real and the virtual is reflected in the
current demographics of the service. While the majority of users of Second Life are male,
the majority of the avatars in the system are female.

User-generated content is probably the most personalized aspect of Second Life and
similar virtual worlds. Users can customize the appearance of their avatar by designing
unique body shapes, clothing and personal accessories. More advanced users can create
pets, vehicles, homes and elaborate landscapes. As a bonus, residents possess virtual
copyright privileges for unique items they create within the service.

5

What really is Second Life?

What is an Avatar?
Its origin comes from Hindu philosiphy most commonly referring to the
incarnation (bodily manifestation) of a higher being (deva) or ‘Supreme Being’
onto planet Earth.

The word has also been used by extension to refer to
the incarnations of God or highly influential teachers
in other religions, especially by adherents to dharmic
traditions when explaining figures such as Jesus or
Mohammed. Source - Wikipedia

More recently, the term ‘avatar’ was famously penned by William Gibson is his
1984 novel Neuromancer, in which people created virtual 3-D representations
of themselves or ‘avatars’ for use in the metaverse.

2b. Early ‘Virtual’ Days
Second Life, formerly known as Linden World, sprang to life in late 2002. Created by
former Real Networks’ CTO Philip Rosedale and his company Linden Labs, Second Life has
grown in just a few short years from a handful of servers to literally thousands worldwide
supporting over 10 million residents (as of October 2007).

There is an ongoing debate, however, to the ‘true’ resident population. The Second Life
website currently defines a ‘resident’ as “a uniquely named avatar with the right to log
into Second Life, trade Linden Dollars (currency in SL) and visit the Community pages”
– currently pegged at over 10 million total residents (TR).

There are some issues with this service definition. Regardless if a user has one or multiple
accounts, each unique avatar is counted as a unique resident. Many unique users also
try the service only once and never return; this may also inflate overall TR population
figures. Other metrics are likely far more accurate such as RCO, residents concurrently
online. This RCO figure currently averages roughly 30K, but can fluctuate anywhere
between 20K and 40K residents concurrently online.

Another SL population metric widely quoted is the figure for residents who have logged
in the past 60 days. Though this metric also includes single-use residents, the 60-day
figure may be a better gauge of churn and service popularity than either TR or RCO.

6


Concurrent Residents Online and Total Residents
data collected 08/2006 - 03/2007 GMT, excluding grid downtime

40’000 4’500’000

35’000 4’000’000

30’000 3’500’000

25’000 3’000’000

20’000 2’500’000

15’000 2’000’000

10’000 1’500’000

5’000 500’000

0 0
08/2006 09/2006 10/2006 11/2006 12/2006 01/2007 02/2007

Average Concurrent Residents Online Total Residents Trend Average Concurrent Residents Online

Additional research studies conducted by professors and students at Rollins College and
elsewhere have projected that Second Life will produce an RCO of 150K by March 2008,
based on current growth and usage trends. In addition, Second Life’s TR during that
same month will increase to 25 million. 3

2c. Early ‘Virtual’ Days
Unlike your ‘real’ cost of living, there is no financial expense to basic existence in Second
Life. However, if a user decides to plant roots and settle down in Second Life, by owning
virtual property or setting up a virtual business, there are monthly fees for land ownership,
maintenance, and other associated server and support costs.

As a result, an economy of sorts has developed within the Second Life metaverse helping
facilitate the exchange of virtual goods and services between residents. In order to buy
land or other items within Second Life, one must use a form of virtual currency called
Linden dollars. A floating exchange, called the Lindex, keeps track of the conversion
between Linden Dollars and ‘real’ U.S. dollars. As of August 30th, the conversion rate
posted on the exchange was L266 Lindens to the dollar.

According to founder Philip Rosedale content creation is also a viable virtual world
business. Residents of Second Life transact more than $1 million a day, and about 40,000
residents are cash flow positive, he said. In one Second Life shop, 830 residents are
making greater than $1,000 per month from selling virtual clothing. “Just like the Web, a
network effect business is driven by creativity and economic success.”4

7


The First Virtual Millionaire
Ailin Graef by day is a Chinese-born language teacher in Frankfurt, Germany. By night she is one of a
growing number of virtual entrepreneurs doing business in Second Life.

Buying and selling virtual real estate, creating a whole line of designer struc-
tures, clothing and various personal items, Ailin Fraef’s virtual persona Anshe
Chung (pictured at left) has become a bit of a celebrity beyond the realm of
Second Life.

Her amassed wealth within Second Life has blossomed into a growing busi-
ness in the ‘real world’ worth millions of dollars. She now supports a growing
worldwide team of designers and business associates all helping to run her
virtual operations.

2d. Academic Pursuits
As was the case in the early days of the Internet, academic institutions and researchers
have been some of the earliest adopters of virtual environments such as Second Life.
Conducting lectures, town hall meetings and other academic functions, Second Life has
allowed schools and universities to extend the reach and flexibility of their ‘distance
learning’ and collaboration efforts.

Thanks to the metaverse, physical presence is no longer necessary to be an active part of
intellectual discourse. According to Professor Rory Ewins of Edinburgh University, beyond
email, IM and chat rooms, Second Life “replaces that sense of immediacy that you have
in real life.”5

A sample of the growing list of schools and universities now in Second Life:
Arcada University, Finland Edinburgh University New York University
Aarhus Business College, Denmark Harvard University Oxford University
Berkeley INSEAD Sogang University, S. Korea
Columbia University Ithaca College University of Aveiro, Portugal
Cornell MIT University of Sydney, Australia
Duke University Murray State University University of Toulon, France

Areas of academic study using Second Life as a platform include: chemistry, biology,
meteorology, geology, architecture, urban planning, industrial design and any number of
artistic disciplines. According to Anne Beamish, Professor of Urban Planning at University
of Texas at Austin, Second Life provides an alternate palette in which to engage her
students. “I use Second Life for students to explore ideas about public space and what
makes a good public space,” she said. “Being in Second Life all of a sudden puts them in
this different environment, which is similar but different, and it forces them to explore
how they think about these things” 6

8


No Peeking!
As was the case with the rise of the Internet, DVD’s, satellite TV and other media platforms, adult
content has found its way into the realm of the metaverse.

Arguably, the appearance of adult content and gambling within Second Life and
other virtual communities could be a harbinger of a growing interest in virtual
worlds as both a social and commercial platform.

In early May 2007, Second Life instituted several technical safeguards to block
exposure to adult content and gambling services from specific avatars based
on user age and location. In July 2007, Linden Labs went one step further,
outlawing all games of chance in SL that are ‘connected to real life events.’

9

3. Other Virtual Environments

3a - A crowded virtual world
Second Life is certainly not alone, nor was it the first virtual environment or community
to spring up in cyberspace. In fact, there are literally dozens of virtual environments
currently active or in their planning stages. Some are as unscripted like Second Life,
while others offer a more structured environment. A sample of existing virtual worlds:

Cyworld – cyworld.nate.com
Data stat: Reaches over 90% of all teens in
S.Korea.

Originally in South Korea, Cyworld has become
extremely popular throughout the Pacific Rim and
recently launched in North America.

Members cultivate on- and off-line relationships by
forming ‘Ilchon’ or buddy relationships with each
other through a service called “minihompy”, which
encompasses photo galleries, message boards,
guest books and ‘mini rooms’ where users create
their own personalized virtual living space.
Source Wikipedia

Habbo Hotel – www.habbo.com
Data stat: Over 50 million users worldwide

Launched in 2000 by two Finnish entrepreneurs,
the service has spread to over 29 countries
worldwide.

Users customize their own ‘Habbo Guest Room,’
with pictures and various ‘fumi’ or furniture. Users
obtain fumi and other items through the Bank of
Habbo, where credits are created and exchanged.

Habbo has limited flexibility and tends to attract
a younger user base than most other virtual
community services.

10

Other Virtual Environments

Sony’s ‘Home Project’ for PS3
Data stat: 4.5m PS3 units sold worldwide (Sep’07)

Home is the ‘soon-to-be launched’ virtual community
built exclusively for the PlayStation 3 console.

Users will design their own avatar and living space
including a personal trophy room to review game
achievements.

Public or ‘common’ areas will include multiple lobbies
and meeting places for conversation (both text and
voice) and game challenges. There will also be
theatres and museums to watch previews, videos, in-game clips as well as play mini-games.

Club Penguin – www.clubpenguin.com
Data stat: Over 12 million active users worldwide

Club Penguin is a massively multi-player online game
(MMOG) specifically developed for children ages 8 to
14.

Using cartoon penguin avatars, players chat, play
mini-games and participate in other joint activities.
Users can design their own igloo homes and adopt
pets called ‘puffles’ which are also customizable.

The service was recently purchased by Disney in a deal worth nearly $700 million.

Entropia Universe – entropiauniverse.com
Data stat: Over 600k registered users worldwide

Similar in scale and scope to Second Life, Entropia
Universe is a science-fiction game set on the planet
of Calypso.

Game players must help create a civilization on this
untamed-virtual world. Similar to Second Life, users
begin the game with virtually nothing and must build
up skills and possessions to survive and then thrive.

A currency system has also been established by
which users can easily transfer funds between real and virtual worlds.

11


There – www.there.com
Data stat: 1 million users, mostly in North America

There.com is another competitor to Second Life and
the rest of the emerging group of players in this
space.

There.com’s claim to fame is an ongoing relationship
with cable channel MTV. The Hills and Virtual Laguna
Beach are online extensions of both hit cable shows
on the network (vmtv.com).

There.com service currently boasts roughly 750,000 active users on its main services.

Virtual Lego Community
Staging a series of events in Second Life in 2006,
Lego is no newcomer to the virtual world.

Lego recently announced a partnership with
MMO developer NetDevil to create a virtual Lego
community set to launch in 2008.

According to Valther Pallesen, EVP at LEGO, “The
LEGO brand represents construction, creativity and
problem solving – values that compliment the MMOG
market. 7

3b. Let the Games Begin!
The arrival of Second Life and similar virtual worlds should not be a surprise to anyone.
In a sense, the early developments of video games on both the PC and various gaming
platforms (Sony, Nintendo, and Microsoft) provided increasingly complex and visually
immersive user experiences. Classic single and multi-player games such as Castle
Wolfenstein, Doom, Quake, Half-Life, Halo, Metroid Prime, and Call of Duty (usually labeled
as first-person shooters or FPSs) evolved over time providing players with increasingly
rich, yet scripted, virtual 3-D environments.

Today Second Life has been compared to what are called massively multi-user online
games (MMOGs) such as World of Warcraft (WoW) or Eve Online; however, it may not be
a completely fair comparison. Though possessing similar social attributes such as their
persistent nature (always active) and various community building characteristics, games
such as WoW and Eve Online are much more structured and scripted, limiting users to
specific goals, storylines, language, and codes of conduct.

12


Conversely, immersive services such as Second Life and Active Worlds are widely-
unscripted and unstructured virtual environments. Apart from a few basic rules, users
are allowed to create their own reality – appearance, environment, interactions, etc.
Some critics cite that most new users do not know what to do when they first enter these
worlds, that they are too open-ended. 8 Ironically, it may actually be this flexibility (or
open-endedness) that could drive development in the virtual space. Could Second Life
offer clues to a future Web 3.0?

Though not all current or planned virtual worlds may be active 5 or 10 years hence,
no doubt many will exist in some form or another. Perhaps one of the existing virtual
environments will be the basis for a future Web 3-D platform, a ‘virtual’ standard in which
future online services and interactions will be based? (discussed in Section 6)

Though some sports and action video game titles have attracted some interest from
marketers, the violent, fantasy, and adult themes in many scripted MMOGs games, such
as WoW or Halo, may find it difficult to attract most brands. Alternatively, open-ended
environments such as Second Life allow for multiple themes and multiple environments,
suggesting brands may play an important role in their ongoing development. We will
discuss this in more detail later in this MC Insight.

Before Second Life…

Early First Person Shooters (FPS) such as Doom and Duke Nukem 3D introduced consumers worldwide
to the visual concept of 3D computing and gaming environments.

Doom (id Software, 1993) Duke Nuken 3D (3D Realms, 1996)

13

4. Early Virtual Marketing
Efforts
According to writer W. James Au there are now over 100 ‘for-profit’ corporate-owned
islands in Second Life (actually 136 if one includes the non-profits) all considered ‘real
life’ firms conducting business in Second Life since its inception in 2002. 9 The rudimentary
advertising methods in use since the early days are more akin to outdoor signage than
virtual marketing. Businesses post graphics and static displays on the sides of various
structures and surfaces within SL’s virtual environment.

By clicking on specific graphics, users are prompted with text messages
from various companies within SL, offering special deals on virtual
clothing, artifacts, body designs, real estate or even consulting on
how to live a better ‘second life’ within the service. Many of these SL
advertisements now include Second Life urls or ‘SLurls’ linking directly
to specific web pages outside the SL environment.

Signage examples in SL:

SLurl example: Clicking on the Sears logo takes the user directly to Sears.com.

14

Early Virtual Marketing Efforts

More recent examples of marketing within Second Life include store fronts, showrooms,
audio clips, vehicles, digital sampling of merchandise, guest speakers in virtual reading and
lecture halls, and even rock concerts - all taking advantage of SL virtual capabilities.

Virtual consulting firm K Zero (UK) recently published brand timelines (retail below) of
various industry sector activities within Second Life. As these timelines suggest, as the
total Second Life population has pushed towards the 8 million mark (and now beyond),
an increasing number of companies in a wide array of industry sectors - automotive,
financial, retail, media, etc, have all staked a claim within Second Life.

Retail brands in Second Life
Bruna

8M
1-800 Flowers

7M
Lacoste Kraft osMoz

6M
Registered accounts

Aveda
Aveda
5M
L’Oreal Calvin Klein

4M

3M
Circuit City
American Apparel Reebok

2M
Adidas Sears

1M

0M
J A S O N D F M A M
Jun 06 Jan 07 Jun 07 Jul Aug

Source: K Zero

15


Virtual Marketing Spotlight – Sears
Launched in January 2007 through a partnership with IBM, the Sears storefront in Second Life, called
the Sears Virtual Home, offers distinct showroom floors for automotive products and services, home
and kitchen furnishings, as well as consumer electronics.

Each floor highlights different Sears products providing
consumers much more functionality than what is possible
through a typical store web site.

Of particular note is the kitchen design center allowing
Second Life users to model and create their own dream
kitchens using a wide array of colors, textures and hi-tech
Sear products and appliances. Users can move around
within their custom creations as they would in a real
kitchen in order to get a look and feel for how the products would work in their own kitchen at home.

The Garage and Automotive floor offers similar product possibilities for consumers. Click on a set of
Craftsman cabinets and the tools perform a neat trick of flying through the air finally arranging
themselves back on cabinet shelves. Like the custom kitchen, Second Life users can walk around the
garage to see how they can design their own workshop.

The Entertainment and Electronics showroom provides similar interactive functionality allowing visitors
to test various home electronics such as televisions (watch movie trailers and other video clips) as well
as test virtual sounds systems to find the perfect speaker arrangements for a specific room in their own
home.

16


Virtual Marketing Spotlight – Lacoste

In April 2007, worldwide clothier Lacoste held a virtual modeling contest in search of the 100 most
remarkable avatars in Second Life.

Unlike American Apparel or Reebok, Lacoste chose not to have an ‘ongoing’ presence in Second Life,
deciding instead to run a multi-week promotion allowing residents and artists in the virtual world to
express themselves outwardly, displaying their virtual presence for the ‘real’ world to see.

The top 6 contestants, as voted by the ‘real and virtual’ public, shared the grand prize of 1 million
Linden Dollars.

17


4a. Additional Marketing examples in Second Life:

Adidas
Adidas launched a virtual store in Second Life in September
2006 to promote a new brand of shoe available in the real
world, the a3 Microride. When worn in Second Life, the shoes
provide SL users a little extra bounce in their step.

Reebok also launched a store in SL. In their virtual storefront
users are offered design options for shoes that can be
purchased in the real world.

aloft by Starwood
In preparation of its ‘real world’ debut in 2008, Starwood
launched a virtual model of it’s aloft hotel concept in Second
Life.

In May 2007, the hotel chain redesigned the interior of the
virtual hotel space and announced they would donate their
Second Life island to a worthy cause once their marketing
efforts were concluded.

American Apparel
Launched in June 2006, American Apparel was the first ‘real
world’ store to open up a counterpart in Second Life.

The clothing company also was the first to connect virtual
world sales with its real world counterpart. Clothing items
selected by SL residents in the virtual store were good for
discounts towards similar items in the real American Apparel
stores. The AA virtual store experiment ended in July 2007.

18


L‘Oreal Paris
In early Spring 2007, L‘Oreal Paris and virtual modeling agency
Aspire! hosted the Face of L’Oréal Paris Glamour fashion show
within Second Life.

The winner, Isabella Sampaio (pictured left) received a year’s
supply of L’Oreal Paris products, a modeling gig with the
Aspire! Modeling Agency and have their avatar displayed on a
special VIP L’Oreal Paris website.

Dell Computers
Dell launched their Second Life factory in November 2006,
allowing users to not only obtain virtual PCs, but design and
order models for their real world counterparts as well.

The Dell Island includes a walk-through of a late model Dell
desktop as well as a mockup of Michael Dell’s college dorm,
the founder and CEO of Dell.

Scion (Toyota)
Scion was one of the first automotive companies in Second
Life. In addition to offering SL users a test drive of their
new models, Scion allowed SL residents to create their own
virtual versions of the vehicle, mimicking the personalized and
exclusive touch of the brand in the real world.

Other auto brands have quickly followed Scion’s lead including:
Toyota (Scion’s parent), Nissan, Mazda, Pontiac, BMW, and
several others.

19


Coca-Cola – Virtual Thirst Contest
In May 2007 Coke launched the Virtual Thirst contest in SL
inviting all Second Lifers and designers to create their versions
of virtual Coke machines.

In addition to SL, Coke used a unique MySpace page and
promotional site virtualthirst.com to provide entrants and
other interested parties updates on the status of the contest.
The winning design was announced in July 2007.

Citroën - Brasil
In April, 2007, Linden Labs launched the official Portuguese
version of Second Life called Ilha Brasil. At the time of launch,
Citroën opened its first virtual dealership, offering residents
test drives in their new 2008 model, the C4 VTR, which they
were allow to keep for use anywhere within SL.

The complete virtual strategy also included a virtual Citroën
plant showing the company’s automated assembly line.

Penguin Books – William Gibson
In August 2007, Penguin Books and Rivers Run Red hosted a
book reading event in Second Life to promote the launch of
William Gibson’s new book, Spook Country.

Live book readings and Q&A sessions have become a staple
within the SL universe. Bantam Books offered up Dean Koontz
to SL residents back in March 2007, reciting from his recently
published work, The Good Boy.

20


Sky News UK
In May 2007, Sky News launched a 24-hour news center in
SL offering viewers the chance to sit at the anchor desk for a
close-up view of what it looks like to work in a news studio.

Sky News is certainly not alone. Other media firms such as
the BBC, Reuters, Channel 4 and others have also made their
presence known in Second Life.

Kraft – Phil’s Supermarket
In May 2007, Kraft launched Phil’s Supermarket, named after
‘supermarket guru’ Phil Lempert, food editor for NBC’s Today
show in the U.S.

Inside Phil’s Supermarket is a culinary school, holding
scheduled classes on food and cooking, as well as a new
product showcase, displaying various new product ideas from
Kraft.

NOAA – Weather Maps, Planetariums, and Hurricane Simulators
In addition to the myriad of academic institutions inhabiting
Second Life, non-profit organizations and government
agencies are also using the platform to hold public forums,
explore new learning techniques, or just experiment.

The NOAA, the U.S. National Oceanic and Atmospheric
Administration has been a long-time resident within Second
Life creating large scale ‘walk-through’ weather maps as
well as other science-related environments.

21


The preceding pages contain just a handful of the many companies and organizations
joining the ranks of the virtual populace. No question, these are very early days for virtual
environments. Brave marketers taking these first courageous steps into Second Life and
other virtual worlds are learning and experimenting as much as they are reaching out to
their target consumers.

As a result, performance varies widely depending on brand, sector, and an evolving process
of trial and error. Regardless of the outcome, Second Life has afforded marketers the
unique opportunity to create new modes of interaction between consumers and brands.
Lessons learned here will provide invaluable insight as other virtual media environments
emerge, grow and evolve in the coming years.

Sample ‘Must Reads’ from the Metaverse:

Helped coin the term ‘metaverse’ Early use of term ‘avatar’

Terrific resource for anyone interested This densely written techno-thrill
Boasts the first use of the word
in learning how to maximise their time ride boasts the first use of the
‘metaverse.’ Snow Crash has
in this extremely popular virtual world. word ‘avatar’ in modern literature.
become the inspiration for any
(2007) (1984)
number of writers, developers
and film directors making forays
into virtual worlds. (1992)

22

5. Virtual Marketing Challenges

Second Life and its ilk have come under some scrutiny in mid-2007. Despite all the
positive media coverage, increasing marketer involvement and a burgeoning resident
population, many Second Life advertising efforts of late have been met with mounting
indifference. Citing inaccurate population figures, empty virtual buildings and storefronts,
technical glitches, scalability issues and inconsistent measures to gauge success, pundits,
consultants and even marketers themselves have all begun to question the overall
effectiveness of Second Life and similar virtual worlds as a viable advertising platform.11

A recent article in the September 2007 issue of Wired magazine has only helped to
reinforce this growing skepticism, taking a bearish stance on the near-term marketing
prospects of Second Life and similar virtual environments. 12 Considering the examples
mentioned in the Wired article (Adidas, H&R Block, etc), a good number of marketers
may have entered the ‘virtual’ space with unrealistic expectations.

In this section we will explore some of the current challenges of marketing within Second
Life and other virtual environments:

Don’t expect ‘mass media’ results

Managing expectations is absolutely crucial

Treat virtual environments like event planning

Do brands need a temporary or permanent presence in virtual worlds?

By understanding the existing issues, we may find proper reason to either pursue/refine
a virtual marketing strategy or hold off until more suitable opportunities materialize.

5a. Don’t expect ‘mass media’ results
As detailed in Section 2, critics argue that multiple avatars could be owned by a single
individual. The total resident (TR) population listed on the service tracks avatars and
NOT people; as such, this TR figure could be grossly inflated. A better way to gauge
audience size within SL may be to observe ongoing activity or residents concurrently
online (RCO). Independent metrics released by Rollins College in June 2007 suggest that
Second Life supports an RCO figure of roughly 25K.13 The same report projects that by
March 2008, Second Life will be home to more than 25 million residents (avatars) and
attract a concurrent online audience of roughly 150K.

No question, an RCO of over 150K would be quite impressive. Realize, however, that this
figure represents a worldwide audience. Audience figures (left) released by comScore in
May 2007 reveal that the largest share of active users of Second Life is actually located
in Europe, Germany in particular.

23

Geographical Location of Second Life Residents Who Logged-in
During January and March 2007
Unique People, Age +15

Total Worldwide Audience - Home and Work Locations*
Source: comScore World Metrix

Increase In Active
Mar.07 Percent of Total
Residents
(000) Active Residents
Mar.07 vs Jan.07

Worldwide 1,283** 100%** 46%
Europe 777 61% 32%
Germany 209 16% 70%
France 104 8% 53%
UK 72 6% 24%
North America 243 19% 103%
USA 207 16% 92%
Asia Pacific 167 13% N/A***
Latin America 77 6% 26%
Middle East & Africa 20 2% N/A***

* Excludes traffic from public computers such as Internet cafes or access from mobile phones or PDAs.
** Sum of components may equal more than total due to rounding.
*** N/A - Residents in January below minimum reporting standard
source: Media Guardian

As the destination traffic figures listed below suggest, many well-known marketer-focused
SL destinations deliver limited audiences. Any marketing foray into Second Life at its
current stage of development must expect similar results.

IBM, one of the most prominent marketers within Second Life, currently attracts about
8,400 visitors per week. As with the overall TR figure (counting avatars vs. people), the
actual IBM audience may be slightly lower.

Marketers take note; even with a highly-marketed and heavily attended Second Life
launch party, traffic in the proceeding weeks and months will likely decline without new
or compelling content to promote repeat visitation.

Est avg Est avg hourly Estimated total
Site(*Native reality site) hourly visits visits (peak) weeks visits

The Pond 53 19 9,025 (up 35%)
IBM 50 47 8,412 (up 2%)
Pontiac 33 44 5,676 (down 2%)
The L Word 26 33 4,464 (down 14%)
Greenies Home 26 32 4,392 (down 10%)
The Weather Channel 17 25 2,880 (down 3%)
Nissan 16 11 2,808 (down 4%)
Microsoft 16 25 2,796 (up 2%)
Virtual Holland 14 17 2,376 (up 9%)
ABC Island 11 11 1,980 (up 3%)

Source: New World Notes: Tateru’s Mixed Reality Headcount

24

Virtual Marketing Challenges

5b. Managing expectations is absolutely crucial
American Apparel opened in Second Life with
great fanfare back in June 2006. Despite
attracting thousands of visitors from around
the world, in July 2007 American Apparel
shut its virtual doors. No doubt, the lack of
consistent or ‘repeat’ traffic was a contributing
factor for ending the SL experiment. Quoting
from an American Apparel press statement:

“…we’re closing our doors … for now. This
doesn’t mean we’re finished with the virtual
world. Stay tuned to see what we do next.” 14

As the Wired article suggests, it is not just a matter of ‘build it and they will come’ but
creating compelling reasons for Second Lifers to frequent a location more than once. In
the case of American Apparel, their virtual store would frequently lay dormant, devoid of
shoppers or even store personnel. In the end, a Second Life virtual store likely did not
generate sufficient ‘real world’ sales or exposure to justify existence in its current form.

Considering a virtual storefront? The main question to ask, “Based on business objectives,
will a virtual storefront generate enough ‘ongoing’ traffic or revenue to justify the ‘ongoing’
expense?”

Consider the physical world responses if marketers faced a similar dilemma of minimal
store traffic or revenue; no question the lack of patronage would set off alarm bells.
Possible physical world response would be to increase marketing expenditures, alter the
product offerings within the store, or perhaps even close or move the specific location.
As we will see later in Section 5c, none of these efforts may bring immediate results in
the virtual world.

5c. Treat virtual environments like event planning
According to Wagner James Au, prominent writer and blogger on all things Second Life,

“...entering virtual worlds, what you’re seeing is ‘who’s here now’ rather than the ‘who’s
been here’ “ 15

As Wagner James Au suggests, perceiving a virtual location as always empty would be
misplaced as a current user only witnesses its current state without any knowledge of
activity over a specific period of time – a day, week, month or longer.

That said, however, an empty store may have as much brand impact, if not more,
than a store crowded with people. The lack of activity may suggest to consumers that
perhaps this place has minimal value, unpopular, provides bad service, etc. No amount
of advertising, virtual or otherwise, may reverse these perceptions.

25


Media Contacts believes that it is inadvisable to conduct marketing campaigns within
virtual worlds in the same manner as those running across traditional media channels.
Virtual worlds like Second life require a different approach and subsequently a different
set of metrics / measures to gauge success.

Despite their virtual nature, Second Life and similar virtual worlds possess some of the
same characteristics of the ‘real world’ environments they emulate. First, they generally
exist in persistent state, continuing to function and run in ‘real time’ whether or not a
specific user is active. Second, their 3-D environments are purposely designed to be
explored, just as if one was walking down an unknown street or entering a new store
for the first time. Driving footfall is therefore critical, in both the real and the virtual
worlds.

Ironically, while other digital media channels (web, audio and video) are all evolving
into on-demand consumer platforms, virtual environments such as Second Life may
require marketers and media companies to employ old-fashioned ‘real world’ advertising
techniques, such as event planning or outdoor advertising, to successfully promote virtual
exposure and repeated use.

For example, some of the more effective marketing efforts in Second Life resemble similar
‘real world’ events such as book readings, music concerts, celebrity interviews, scholarly
lectures and other ‘scheduled’ public gatherings. Thus far, ‘scheduled’ events such as
these have attracted the sixeable audiences within Second Life. In fact, ‘live’ book
readings by prominent authors have become some of the most popular marketing events
in Second Life. In a way, one could argue virtual events such as these are far easier to
organize (and perhaps even environmentally friendly) as no ‘real life’ travel is required of
either the author/celebrity or the people attending the event.

In 2007, Penguin and Bantam Books used Second Life to promote releases by authors
such as William Gibson and Dean Koontz. Despite a few technical glitches, both authors
attracted huge virtual crowds, especially William Gibson. Best known in cyber circles for
his 80’s masterpiece Neuromancer, William Gibson is considered, by some, to be one of
the earliest pioneers of virtual reality. The popularity of his book reading event within
Second Life was of no surprise to anyone.

26


5d. Temporary vs. Permanent?
Treating virtual worlds like event planning may provide marketers additional benefits
- lower brand risk and reduced cost of entry. If marketers wish to test Second Life or
other virtual environments without the enormous investment in either time or internal
resource (to build and maintain virtual locations), teaming up with existing SL tenants
may be both advisable and financially prudent. In the case of Penguin Books and William
Gibson, they partnered with virtual developer Rivers Run Red for the individual event. In
this case, brand exposure was limited to just the single event.

Consider the current challenge of Kraft and many other brands supporting a permanent
presence within Second Life. Though Kraft has a well-promoted schedule of virtual
activities and events, the schedule is not full time; it is not even daily. Come at a time
when no event is scheduled and one will likely find what amounts to a ‘ghost town’
containing few, if any, support personnel and more importantly few, if any, customers.

Temporary vs. Permanent Virtual Spaces?

Kraft, Sky News (UK), Reuters, Major League Baseball (shown below) and many other well-known
brands have built sophisticated ‘persistent’ spaces within Second Life. Unfortunately, apart from a
limited schedule of events, most days these amazing virtual spaces go unseen and unappreciated.

Questions to ponder while exploring these beautiful, though frequently empty, virtual spaces:

“Should global brands build long-term virtual spaces or consider more temporary opportunities?”
“Do marketers need a persistent presence in Second Life to promote customer interaction and create
buzz in virtual worlds?”

27


Kraft, Sky News, Reuters, the MLB and many other ‘persistent’ brands in Second Life face
an interesting challenge – is it OK to support a mostly inactive virtual environment?

In the case of American Apparel, the clothier recently decided (July 2007) to close its
Second Life shop and consider its next virtual move – perhaps an event-driven effort
such as a virtual fashion show similar to L’Oreal Paris?

Considering American Apparel’s recent SL store closure, the argument could be made
that temporary or ‘leased’ spaces provides better flexibility and control over virtual
experiences. As detailed in the prior section, Second Life residents who come across
empty virtual spaces may prove difficult to coax back, regardless of the updated value
proposition.

We feel that the Lacoste example detailed earlier illustrates a very effective ‘tactical’
approach for testing brand impact, engagement and relevance. It is fleeter than the
American Apparel strategy which proved unsustainable from a resource requirement
perspective.

Perhaps it would be best that marketers for now treat advertising forays into virtual
worlds like short-term outdoor events or promotions – here today and gone tomorrow?

A good example of a temporary SL marketing effort would be the new Die Hard film.
20th Century Fox with the help of Picture Production Company (PPC) recently hosted an
interview session with Bruce Willis within SL to promote the launch of Die Hard 4.
Fox Studios held a similar event in 2006 supporting the launch of X-Men 3.

The Die Hard 4 event was staged in a rather
simple Second Life environment offering
visitors the ability to view clips, photos, and
interact with various animated elements
from the new film. When the picture finally
completes its worldwide run in theaters, the
Second Life location built by PPC will likely be
taken down. In this instance, Fox’s exposure
would be limited to the event itself.

If successful, subsequent virtual movie marketing efforts will likely follow a similar path
– build and promote a movie-specific themed virtual location, run the event and then
take it down when the entire campaign is completed.

28


The Metaverse in the Media

Over the past several decades, television programs and movies have used the concept of a ‘metaverse’
as fertile ground for innovative storytelling. Popular programs and films such as Star Trek: The Next
Generation, Minority Report and Tron have all made virtual environments a key part of their storylines.

Tron

Minority Report

Star Trek: The Next Generation

The Lawnmower Man

Johnny Mnemonic

Wild Palms

machinima

Most recently, Second Life itself has been the backdrop for some of the compelling use of virtual worlds
in media. Using the Second Life application, SL residents can record activities as they take place in the
virtual world. These clips can then be strung together and edited to make movies or other forms of video
expression. These videos are called machinima. 16

29

6. What’s next for Virtual
Worlds?
In 1995 the web was regarded within most marketing circles as irrelevant. Those who
dismiss Second Life in the same manner today may be missing the point. Just as the web
(and HTML) eventually became the standard for browsing the Internet, the VR coding
related to Second Life or similar virtual worlds may eventually evolve into a standard for
3D interactive environments as well.

This will require Second Life and a host of other services to eventually find common
technical language allowing users to seamlessly teleport from one virtual environment to
the next just as easily as users now ‘surf’ from one web site to the next.

Bottom line – regardless if existing virtual services become part of a larger interactive
network similar to the existing 2-D web, virtual environments are here to stay and will
only evolve and grow over time. Marketers need to keep close watch on innovations
in the virtual space as consumers continue to discover new and innovative ways to
communicate and share experiences with each other.

Virtual trends to watch for in the months and years to come:

6a. Will a future Web 3.0 turn into Web 3-D?
According to Wikipedia, beyond the sales hype, the term Web 2.0 refers to any next
generation application that helps users communicate, collaborate and share. Considering
the similar goals of immersive environments such as Second Life, worlds.com, there.com
and others, could Web 3.0 actually turn out to be Web 3-D?

Though it is still too soon to tell if immersive environments will be at the center of the
next wave of personalized media, applications
and technology (Web 3.0), early signs suggest
we are moving in this very direction. Consider
the latest technology out of Redmond called
Microsoft ‘Surface’ (right), offering a multi-
touch interface for communication, information
and data retrieval, commerce, as well as media
consumption. Microsoft is not alone in this
innovative development; a U.S. firm called
Perceptive Pixel is also working on similar multi-
touch user interface technology.

Microsoft has a second effort out of their Live Labs group codenamed ‘Photosynth’
that is also worth noting. This innovative virtual application creates 3-D images and
environments from multiple 2-D images. For example, a large collection of still images
taken of the Piazza San Marco in Venice are assembled to provide the user a 3-D like walk-

30

What’s next for Virtual Worlds?

through of the entire piazza (http://labs.live.
com/photosynth). Consider growing collections
of images from Flickr, Photobucket, etc and
the ‘virtual’ potential of this new application
becomes quite clear.

6b. Watch the academics
Fertile ground for communication, research and experimentation, academics and
scholars were some of the earliest adopters of the Internet. Second Life and other virtual
environments are now experiencing similar high levels of attention from academics and
intellects worldwide.

These are the folks to watch.

Web browsers, online libraries, email clients and other Internet staples all had their
beginnings from creative minds on campuses all over the planet. Imagine what students
and professors are dreaming up for immersive environments like Second Life?
No question, the academic world will be among the first groups to drive use of virtual
worlds for learning, intellectual discourse, collaboration and visual representation.
Commercial applications are bound to follow soon after.

Examples of the many innovative academic and independent projects in Second Life: 17

UC Davis (U.S.) - In addition to the typical California beach accoutrements, the medical school created a
simulation that mimics the audiovisual hallucinations associated with schizophrenia. Interesting experience;
just don’t take any of the creepy advice whispered in your ear during the simulation.

International Spaceflight Museum – This virtual science exhibit contains a planetarium, space
demonstrations, and historic replicas of various satellites, spacecraft and rockets from various space-faring
nations including Russia, China, the United States and elsewhere. Rocket simulators offer users virtual trips
into space.

Ann Myers Medical Center – Support site helping students become more proficient in initial exam history,
physicals as well as analysis of MRIs, CTs and X-Rays.

Virtual Amsterdam – a finely detailed recreation of this historic Dutch city replete with bars, shopping
malls, parks, and all the popular tourist destinations. Not into Holland? You can also visit virtual Dublin,
London, Barcelona, Singapore and many others.

Virtual Skydiving - Not so much a destination as a thing to do. Go into the search function and type ‘sky
diving adventure ride’ to find one of the more popular destinations. If you prefer more ‘physical’ virtual sports
head over to the Ajax Arena either watch a scheduled virtual match or perhaps jump on the field and join a
team.

31


Great Northern Way Campus (Canada) – Virtual campus (pictured below) is part of a master’s degree
program in digital media affiliated with the University of British Columbia and several other prominent Canadian
academic institutions. Site in Second Life opened on the same day the new ‘real world’ facility opened in
Vancouver. Excellent example of how to integrate ‘real world’ educational programs within an interactive
digital media framework. One primary goal of the Second Life component will be to expose the curriculum and
academic work to a global audience of prospective students.

6c. Emergence of Virtual CRM / Customer Service

Geek Squad, Best Buy’s in-house technical support and repair team recently moved their
operation into the virtual world of Second Life. In addition to a bumper car ride and a few
exhibits on computers and electronics (seeing once is enough), Best Buy has also decided
to ‘man’ the Second Life location with limited ‘live’ office hours (not 24/7).

As Best Buy and Geek Squad are typically considered North
American brands, their virtual office hours in Second Life
tend to align with the late waking hours in the region (6pm
– 3am ET). Outside these hours, the place can be pretty
quiet. Considering the persistent nature of Second Life,
perhaps Best Buy should man their island 24/7?

Are we seeing the future of consumer support? Will the majority of users eventually
interact with virtual operators and consultants for any number of consumer needs?

Two areas that may see immediate impact if such efforts such as the ‘Virtual’ Geek Squad
gain traction among consumers: (1) increased use of virtual product and purchase support
specialists, and (2) 1-on-1 and group sessions for tutoring, counseling and perhaps even
religious services.

32


6d. Look first to video game advertising
According to eMarketer, video game advertising worldwide (figure below) is projected
to jump from $692 million in 2006 to nearly $2 billion in 2011. Up to now, most of the
investment is this sector has gone to scripted video games like Madden NFL, FIFA, Grand
Turismo car racing series, and many more.

Worldwide Video Game Advertising Spending, 2006-2011 (millions)

2006 $692

2007 $1,003

2008 $1,330

2009 $1,658

2010 $1,855

2011 $1,938

Note: includes static, dynamic and rich media in-game ads; product placemente/integration and advergaming;
excludes mobile games.
Source: eMarketer, April 2007

If, as projected, there is a significant increase in attention and advertising investment
directed towards this segment, the marketing prospects for virtual worlds will most
certainly benefit.

In addition to watching the overall growth of the space, keep close tabs on developments
from Sony, Microsoft, and Nintendo:

1. Sony Home – First off is the upcoming launch (Spring 2008) of Sony’s Home service,
which will work exclusively with their new PS3 game system. Home’s ‘Second Life-
like’ interface will act as a virtual meeting ground and personal space for all PS3 users.
Players will have the opportunity to create and design their own virtual homes and invite
other PS3 users over to chat, listen to music, view game clips and trophies as well as
challenge each other to matches.

If the Home service is just marginally successful, it may prove be an interesting platform
for marketer experimentation, creating opportunities in both a virtual environment as
well as specific PS3 video games themselves.

One other item of note - unlike Second Life, Sony’s virtual Home service will utilize the
larger TV screen instead of the PC monitor. It may be worth watching to see if the larger
screen in a ‘lean-back’ environment impacts how people utilize a metaverse environment.
It may prompt further ‘lean-back’ behavior as people increasingly ‘watch’ the virtual
activities of others with less of an imperative to interact.

2. Microsoft’s Xbox Live Service – Already offering instant messaging (IM), video as
well as game downloads (in some markets), Microsoft is now rumored to preparing the
launch of an IPTV initiative on the platform.

33


3. Mii’s on the Wii – The Nintendo Wii has been a surprise hit in the gaming world
attracting a whole new legion of casual gamers. One of the more popular features on the
Wii system is the ability to create personal avatars or Mii’s as Nintendo calls them. The
Mii’s represent players or competitors in a number of the games on the system. As the
Wii platform evolves, Nintendo may allow Mii’s to do more than stay confined to their
user’s home system, perhaps traveling online to interact with other Mii’s for IM, gaming
and more.

6e. Will Second Life scale?
In Snow Crash, the popular novel by Neal Stephenson, the main character Hiro travels
throughout a metaverse supporting more than 150 million simultaneous users. Second
Life has already eclipsed 10 million residents and frequently tops 35K-40K concurrent
users daily. If projections are correct, SL will likely push towards 25 million residents
by mid-2008. 18 Can it ever support the concurrent traffic of so many potential users as
depicted in Stephenson’s novel?

The answer is unclear. Comments from various blogs and news reports suggest that
Second Life may run into very serious infrastructure problems if the population continues
to grow at its current pace.19 No question, this scalability challenge will have to be
addressed if Second Life is to survive the dramatic growth spurt expected by 2008.

SL’s current challenge to scale online is not without precedent. Back in the mid-90’s
when online service AOL switched from an hourly to a monthly fee structure, its system
could barely keep up with skyrocketing demand. Too many users tried to sign onto
AOL simultaneously, pushing the online service to the breaking point. Thanks to some
clever marketing from CEO Steve Case as well as some extensive server upgrades, AOL
survived and eventually thrived as an online service for the remainder of the decade.

Expect Second Life to have competition. Social networking service MySpace has been
challenged in recent months by the likes of Bebo, Orkut, Cyworld, Facebook and others,
depending on the market; so will Second Life. Virtual world creators such as Multiverse,
Entropia Universe, There.com, Worlds.com and even the new Chinese virtual world called
hipihi.com, all vie for ‘virtual’ market share from early mover Second Life.

34

7. Final Comments

From the beginning, Media Contacts has taken an extremely pragmatic approach to
the current marketing potential of Second Life and all other virtual environments. It is
an experimental environment that will continue to evolve as technology and behavior
move each other forward, perhaps into still unknown areas. First mover advantage is
unlikely to be reflected in short-term or even medium-term sales advantage. The gain
will certainly be learning, even by making mistakes at a time when the risks of failure
are extremely low.

On the upside we also feel there is an opportunity here for brands to demonstrate a
willingness to embrace new and exciting technology to the group of consumers pushing
the virtual world forward. These consumers are also certainly those least interested in
engaging with traditional ‘push’ advertising models.

However, with marketers understandably focused on optimizing return-on-investment,
whether in a context of brand impact or customer acquisition/direct sales, Second Life
and the other metaverse platforms should be considered for parallel marketing projects
rather than a replacement for more traditional (including traditional digital!) investments.
The traditional offline and now increasingly established digital marketing tactics enable
experimentation with Second Life. As always, experimentation today fuels future
success.

Despite recent dismissive comments in Wired and elsewhere, 20 Media Contacts strongly
feels that virtual environments such as Second Life should not be ignored. We will see
any number of 3D worlds emerge and prosper in the coming decade. As they mature,
marketers will eventually find opportunity and even utility in many of these services.

35

8. Resources and
Suggested Reading
Resources:

Media Contacts — www.mediacontacts.com

Search ‘media contacts’ in Second Life

Second Life Research - secondliferesearch.blogspot.com

Second Life Videos (machinima) – www.secondlifevideos.com

Education in Multi-User Virtual Environments (M.U.V.E.) – www.simteach.com

SLEDucation - www.sleducating.com

Second Life Homepage Forum - forums.slhomepage.com
Annotated Bibliography of SL Online Resources

http://web.ics.purdue.edu/~mpepper/slbib#Blogs

New World Notes - http://nwn.blogs.com/nwn

http://www.sltopsites.com/

Wikipedia - www.wikipedia.com

Forrester Research — www.forrester.com

Gartner Research — www.gartner.com

Suggested Reading:

Fetscherin and Latteman, User Acceptance of Virtual Worlds, June 2007, Rollins

College and Potsdam University

Robbie Cooper, Alter Ego: Avatars and Their Creators, Chris Boot, 2007

T.L. Taylor, Play Between Worlds: Exploring Online Game Culture, MIT Press, 2006

Michael Rymaszewski, et al, Second Life: The Official Guide, Sybex, 2006

Edward Castronova, Synthetic Worlds: The Business and Culture of Online Games,

University of Chicago, 2005

William Gibson, Neuromancer (20th Anniversary Edition), Ace Hardcover, 2004

Neal Stephenson, Snow Crash, Spectra Reprint, 2000

David Gelernter, Mirror Worlds: or the Day Software put the Universe in a

Shoebox, Oxford University Press, 1992

36

9. Endnotes

1. Fetscherin and Latteman, User Acceptance of Virtual Worlds, June 2007, Rollins College and Potsdam

University

2. Wikipedia, Second Life, http://en.wikipedia.org/wiki/Second_Life

3. Fetscherin, Lattemann and Lang, “Second Life Resident Statistics,” Second Life Research,

http://secondliferesearch.blogspot.com/2007_03_01_archive.html (March 8, 2007)

4. Dan Farber, “The Future of Virtual Worlds,” http://blogs.zdnet.com/BTL/?p=5825,

(August 1, 2007)

5. Jessica Shepherd, “It’s a world of possibilities,” Guardian [UK}, May 8, 2007

(http://education.guardian.co.uk/higher/news/story/0,,2074240,00.html)

6. Daniel Terdiman, “Campus Life Comes to Second Life,” Wired.com, September 24, 2004,

(http://www.wired.com/gaming/gamingreviews/news/2004/09/65052)

7. Lego.com, The Lego Group selects NetDevil to create branded MMOG,

http://www.lego.com/eng/info/default.asp?page=pressdetail&contentid=30574 (March 5, 2007)

8. Caroline McCarthy, “ ‘Second Life,’ after the backlash,” August 23, 2007,

http://news.zdnet.com/2100-9595_22-6204024.html

9. Wagner James Au, New Word Notes, Tateru’s Mixed Reality Directory,

http://nwn.blogs.com/nwn/2007/07/taterus-monday-.html (July 2, 2007)

10. Fiona Harkin, “Virtual style? In another life,” FT.com, May 19, 2007

(http://www.ft.com/cms/s/733d2398-05a6-11dc-b151-000b5df10621.html)

11. http://news.zdnet.com/2100-9595_22-6204024.html

12. Frank Rose, “How Madison Avenue is wasting millions on a deserted Second Life,” Wired, August 2007,

(http://www.wired.com/techbiz/media/magazine/15-08/ff_sheep)

13. http://secondliferesearch.blogspot.com/2007_03_01_archive.html

14. American Apparel.net, Sorry, We’re Closed, http://americanapparel.net/presscenter/secondlife/

(July 2007)

15. Chris Anderson, “Why I gave up on Second Life,” The Long Tail Blog,

http://www.longtail.com/the_long_tail/2007/07/why-i-gave-up-o.html (July 20, 2007)

16. Wikipedia, Machinima, http://en.wikipedia.org/wiki/Machinima

17. “Wired Travel Guide: Second Life,” Wired, October 2006

(http://www.wired.com/wired/archive/14.10/sloverview.html)

18. http://secondliferesearch.blogspot.com/2007_03_01_archive.html

19. Ian Lamont, “Second Life’s population problems,” Computerworld Blog,

http://www.computerworld.com/blogs/node/5122 (March 6, 2007)

20. http://www.wired.com/techbiz/media/magazine/15-08/ff_sheep

I gave up on Second Life,” The Long Tail Blog,

http://www.longtail.com/the_long_tail/2007/07/why-i-gave-up-o.html (July 20, 2007)

37

10. Glossary

Metaverse - The term metaverse comes from Neal Stephenson’s 1992 novel Snow Crash,
and is now widely used to describe the vision behind current work on fully immersive 3D
virtual spaces. These are environments where humans interact (as avatars) with each
other (socially and economically) and with software agents in a cyber space, that uses
the metaphor of the real world, but without its physical limitations.

Avatar - Its origin comes from Hindu philosiphy most commonly referring to the
incarnation (bodily manifestation) of a higher being (deva) or ‘Supreme Being’ onto
planet Earth.

The word has also been used by extension to refer to the incarnations of God or highly
influential teachers in other religions, especially by adherents to dharmic traditions when
explaining figures such as Jesus or Mohammed.

More recently, the term ‘avatar’ was famously penned by William Gibson is his 1984
novel Neuromancer, in which people created virtual 3-D representations of themselves or
‘avatars’ for use in the metaverse.

Linden Dollars - Second Life has its own economy and a currency referred to as Linden
Dollars (L$). In the SL economy, residents buy from and sell to one another directly,
using the Linden, which is exchangeable for US dollars or other currencies on market-
based currency exchanges.

Machinima - is both a collection of associated production techniques and a film genre
defined by those techniques. As a production technique, the term concerns the rendering
of computer-generated imagery (CGI) using real-time, interactive (game) 3D engines, as
opposed to high-end and complex 3D animation software used by professionals. Engines
from first-person shooter and role-playing simulation video games are typically used.
As a film genre, the term refers to movies created by the techniques described above.
Usually, machinima productions are produced using the tools (demo recording, camera

38

Glossary

angle, level editor, script editor, etc.) and resources (backgrounds, levels, characters,
skins, etc.) available in the game itself.

Advergaming - is the practice of using video games to advertise a product, organization
or viewpoint. The term “advergames” was coined in January 2000 by Anthony
Giallourakis who purchased the URLs Advergames.com along with Adverplay.com. The
term Advergames was later mentioned by Wired’s “Jargon Watch” column in 2001, and
has been applied to various free online games commissioned by major companies and
marketers.

MMOG - Massively multiplayer online game is a computer game which is capable of
supporting hundreds or thousands of players simultaneously. By necessity, they are
played on the Internet, and feature at least one persistent world.

MMOGs can enable players to cooperate and compete with each other on a grand scale,
and sometimes to interact meaningfully with people around the world. They include a
variety of gameplay types, representing many video game genres. Many MMOGs require
players to invest large amounts of their time into the game. Most MMOGs require a
monthly subscription fee, but some can be played for free.

Source: Wikipedia

39

11. Contact us
We encourage you to contact us directly to discuss, in more details, any concern
you may have regarding this MC Insight issue. We will be happy to assist you.

GLOBAL anthony.rhind@mediacontacts.com
ts.kelly@mediacontacts.com

OR contact the MEDIA CONTACTS OFFICE

MC Banglore
MC Amsterdam
Address: 3570, Garden view, 1st Floor
Address: Burg. A. Colijnweg 2,
13th G-Main, 4th cross, HAL II stage, Indiranagar
1182 AL Amstelveen Netherlands
Bangalore 560 008
Phone: +31 0 20 408 90 00
Phone: +91 80 40365101
Fax: +31 0 20 408 90 01
Managing Director: Vishnu Mohan
Managing Director: Björn Brouwe
Email: vishnu.mohan@mediacontacts.com
Email: bjorn.brouwer@mediacontacts.com

MC Beijing
MC Barcelona
Address: Avda. Sarrià, 102-106, 9ª. Address: Room 2001, 20/F, Tower B, Global Trade
08017 Barcelona, Spain Center
Phone: +34 93 205 87 71 No.36 Bei San Huan East Road, Dongcheng District
Fax: +34 93 414 72 13 Beijing, P.R.China, 100013
Managing Director: Gabriel Saenz de Buruaga phone: +86 10 5923 2923
Office Manager: Joan Grau Managing Director: Leon Lu
Email: joan.grau@mediacontacts.com Email: leon.lu@cn.mediacontacts.com

MC Bilbao MC Bogotá
Address: Alda. Recalde, 50 - 3ª Address: Carrera 7 Nº 71-21; Torre A, Piso 12
48008 Bilbao, Spain Bogotá, Colombia
Phone: +34 94 470 64 18 Phone: +57 1 317 3010
Fax: +34 94 470 6419 Fax: +57 1 317 3464
Managing Director: Gabriel Saenz de Buruaga Managing Director : Viviana Toro
Office Manager: Álvaro Andoin Email: viviana.toro@mediacontacts.com
Email: alvaro.andoin@mediacontacts.com

MC Boston MC Brussels
Address: Rue de Hennin 67-69,
Address: 101 Huntington Ave.;
1050 Brussels, Belgium
Boston, MA 02199, USA
Phone: +32 2 3491560
Phone: +1 617 425 4100
Fax: +32 2 3491570
FAX: +1 617 425 4101
Managing Director: Stephanie Radochitzki
Managing Director: Edward Montes
Email: stephanie.r@mediacontacts.com
Email: edward.montes@mediacontacts.com

MC Budapest MC Buenos Aires
Address: Talcahuano 833, piso 2B
Address: H – 1119, Budapest, Petzvál József u.
C1013AAP, Ciudad Buenos Aires Argentina
50–56, Hungary
Phone: +54 11 5777 7400
Phone: +36 1 464 7272
Fax: +54 11 5777 7401
Fax: +36 1 204 1652
managing director: Lucas Mentasti
Managing Director: Zsuzsa Czagler
email: lucas.mentasti@mediacontacts.com
E-mail: zsuzsa.czagler@hu.mediaplanning.com

40

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