Overview of Virtual Communities What is a Virtual
Transcription
Overview of Virtual Communities What is a Virtual
Overview of Virtual Communities What is a Virtual Community? An avatar-populated, virtual world A pixilated parallel universe where users can create customized avatars, socialize, and even pay real currency for digitized goods Three-dimensional online worlds — many with “populations” 2 1 Worlds.com Launched 1994 During the first dot-com boom, Worlds.com built 3D virtual worlds for bands such as Aerosmith and for corporations such as IBM, Visa, and Coca-Cola. Site visitors created avatars with customized clothing and also designed their own environments. The company says the lack of widespread broadband connections is to blame for the forward-thinking site not catching on broadly way back in the 1990s. Worlds.com is still active and chief executive Thom Kidrin says the company is currently restructuring. 3 Active Worlds Launched 1995 With more than two million users to date, Active Worlds could easily be seen as a rival to Second Life. In fact, Wells Fargo left Second Life to rebuild its virtual world in Active Worlds this year. Way back in the 1990s, Active Worlds built 3D stores for labels such as J. Crew and Banana Republic. Shoppers could browse via avatars and then order real merchandise to be shipped. 4 2 Ultima Online Launched 1997 Although Ultima Online is a massive multiplayer online role-playing game (MMOPRG) that is fantasy-based, it has a thriving economy in which players pay real currency for objects like hammers. According to the Guinness Book of World Records, it's the MMORPG that's been around the longest. Ultima Online was also the first MMORPG to reach 100,000 subscribers. Although real-world brands aren't selling goods in the space, Ultima Online has long shown the potential for selling digital goods to online avatars. 5 Habbo Launched 2000 With nearly 7.1 million current users worldwide, Habbo is a virtual community with cartoony 3D avatars. Major brands such as Sprite, L'Oreal, and Wal Mart have presented interactive ad campaigns within the online world. On Nov. 27, Habbo will launch “Habbo Home” — customized Web pages that feature Habbo avatars. The concept suggests a marriage between MySpace and Second Life. 6 3 Cyworld Launched 2001 Popular in South Korea (nearly one in three South Koreans is a registered user), Cyworld is another MySpace-meets-Second Life social networking service. Users create customized avatars (called “mini-me's,” á la Austin Powers) and can shop for clothing, as well as goods for their virtual homes and other environments. Last year, Cyworld sold $120 million worth of digital accessories in Korea alone. In August, the company launched Cyworld USA with avatars that look more ethnically diverse and older than the cutesy alter egos available in Asia, in an effort to appeal to U.S. audiences. 7 Sims Online Released 2002 The Sims franchise of PC games has sold 70 million copies to date. Its Sims Online title was not a best-selling brand extension, but served as a pioneer in terms of big brands appearing in virtual Web-based worlds (and in-game product placements). Back in 2002, both McDonald's and Intel signed deals with Electronic Arts to place digital versions of realworld products within the online game. 8 4 There Launched 2003 When MTV wanted to launch an interactive, digital version of its show Laguna Beach, it partnered with There (and its parent company, Makena Technologies) to develop a 3D online world based on the television program. There's chief executive, Mike Wilson, says the company is negotiating with major brands who are interested in having a presence within the Web-based environment, which bills itself as a “virtual hangout.” As in other online spaces, There's users customize avatars and create, sell, and buy pixellated goods. 9 PlayStation - Home Launching - November 2007 PlayStation Home is a virtual community of PS3 owners living together in both public and private environments. Users will be able to login, chat with both text and speech and play casual games together such as pool, bowling and even embedded arcade machines. 10 5 PlayStation - Home Launching - November 2007 Features include: Free download Public hangouts Personal virtual apartments - PS Home allows you to decorate your apartment walls and share videos with friends Casual games such as pool, bowling and arcade machines embedded into the world. Users are able to invite fellow residents to join in on any PlayStation Network game. Dressing up your avatar in assorted virtual clothing which the user must pay for Dynamic advertising A virtual cinema for watching movie downloads Sharing videos and music directly out of the media library 11 PS3 Home demo http://www.gamevideos.com/video/id/9861 12 6 [type date here] Contents Second life overview — — — — — — — — Residents Economy Community Demographics Brands Hype vs reality Marketing and brand considerations Summary 14 7 Second Life: A Brief Overview Second Life is a 3-D virtual world entirely built and owned by its residents. It is a virtual world with its own economy – “Linden Dollars” is the currency which can be redeemed into $ Since opening to the public in 2003, it has grown explosively and today is inhabited by over 5.6m people from around the globe A worldwide phenomenon that has grabbed headlines in 2006 But has it achieved critical mass? $1.7m Spent in last 24hrs (April 16th 07) 15 SL: Residents Each Resident creates their own character, called an Avatar, to portray their personal image, along with a personalized SL name. You can custom create everything from the tip of your nose to the tint of your skin. Some take full advantage of the tools available. 16 8 SL: Economy $1 = L$260 • Second Life has its own currency, the Linden Dollar (L$). • Residents can use the L$ to buy and sell goods and services provided by other Residents • Residents receive an amount of L$ when they open a Premium account if they supply credit/debit card details. Additional L$ are acquired through the sale of objects or services. 17 LindeX Currency Exchange • Residents can convert between Linden currency and U.S. currency through this currency brokerage, or through third-party currency exchanges. • LindeX launched in Oct 2005 and since then more than $15MM worth of Lindens have been bought and sold on the exchange, with $2.6MM of that in November alone. • The ratio of L$ fluctuates daily as the Residents set the buy and sell price of L$ offered on the exchange. • It has fluctuated between L$240/USD and L$350/USD from Oct 2005 to Sept 2006 18 9 SL: Buying and Selling Land • SL world is made up of over 3,500 regions. Each region is 65,536 meters2. Nearly 4.5 times the size of Manhattan. • Residents can buy land from the “mainland” which is sold by Linden Labs or buy part of an independent island sold by Residents. • Groups of people with the same special interests often purchase land together •To buy and sell land you must have a Premium account which grants you a 512 m2 bonus lease before land fees are applied. • Land use fees are billed based on the peak amount of land held during your previous 30 day billing cycle . • Residents who own land pay monthly maintenance fees that range from $5 for 512 m2 to $195 for a full region. 19 Second Life: Community within a Community Blogs, Communities, Music, Podcasts 20 10 Second Life: Demographics Currently, majority of players reside in the US with data available for a few other key countries as well (UK leading at 10%) Remaining 35% of players come from “90 other countries” suggesting potential for number of users in Europe Median age is 32 57% male, 43 % female 21 Second Life: Belgium reach 22 11 Running a business in SL There are as many opportunities to generate money in SL as there are in the real world. pet manufacturer casino operator tattooist nightclub owner automotive manufacturer fashion designer aerospace engineer custom avatar designer jewelry maker architect artisit freelance scripter game developer fine artist tour guide dancer musician custom animation creator lottery operator theme park developer real estate speculator vacation resort owner advertiser bodyguard magazine publisher private detective writer 23 Business in Second Life 24 12 Major brands to utilize SL: Just to name a few… 25 Brand Map - SL is becoming a cluttered marketplace Second life brand map 26 13 Sony BMG’s space features a gorgeous club and loft, a shop containing Sony BMG merchandise including lounges featuring images, information, and streaming audio and video content for some of Sony BMG’s hottest acts As part of their official launch and welcome to SL, Ben Folds held an exclusive concert of new material, as well as chatted with residents at the concert. 27 American Apparel was the first major retail shop to join SL. Residents can purchase outfits for their avatars with digital renderings of slim-cut T's and dresses modeled after real-life merchandise. Most items are selling for only $1. 15% Discounts were offered to those who attended the grand opening and bought virtual clothing, to be redeemed at real life retail locations. They even hired SL Residents as sales clerks to help with sales. 28 14 Awareness of brands in SL Brand Awareness Coming out on top is Adidas with 69% awareness from the study. No surprises here as the virtual Adidas store is an obvious interpretation of a first step into SL and is frequently referenced in the media. Reperes research, based on interview of 1,085 avatars between 13 - 18 March 2007. 29 The hype vs the reality Is SL really as good as it sounds? • It has a user base of 7m - a cost efficient platform to reach many people? — True but only 470,000 have visited in the last week, and only 20k – 30k people are in SL at any given time — Plus we don’t know who we’re reaching and cannot target geographically • Approx $1.5m is spent daily in SL — 264k residents were responsible for all spending in SL in March 07. 125k of which only spent $1 or less. 53k spent $40 or more • It’s an opportunity to create PR hype — True, but the fact that there are so many brands already in SL means newcomers will really need to create an innovative offering to stand out and generate mainstream PR - not just PR within the advertising industry! A weak offering will be susceptible to accusations of jumping on the bandwagon 30 15 Marketing in Second Life 31 Virtual world marketing considerations How can a 3d internet environment (a metaverse) bring potential customers closer to my brand, products and services? What makes this medium unique? How we can communicate the messages we know are important in a unique way? What are the major marketing initiatives we need to deploy? 32 16 Commercial considerations and challenges Many brand initiatives in Second Life focus on the brand itself and not the consumer Creating social experiences will make the investment sustainable and keep people coming back. Also prompting consumers to engage with one another will create a richer experience. 33 Brand considerations in Virtual communities Integration One of the best examples of integrated marketing campaigns in Second Life is the Nissan Sentra concept. TV and print channels were used to promote the new Sentra model and dove-tailed into the campaign was a Second Life venue allowing residents to own replicas of the cars - from a giant vending machine Scenes from the TVC could be seen in SL SL campaigns should try to encourage a call to action back to a website 34 17 Brand considerations in Virtual communities Audience Unlike YouTube or MySpace, browsing Second Life requires a time investment. You need to install an application on your computer, you have to want to learn the world and explore it. YouTube and other online communities, are more instant hits, so the engaged Second Life user is more technically adept than most How can we create a presence that suits our audience’s online behaviour? 35 Brand considerations in Virtual communities Maintenance Like any shop a SL presence will need to be staffed, at least for the hours within our timezone business hours When brands launch in SL and users have no idea how to use the space, it creates negative PR New SL technology can allow web/email-based notification of people teleporting into a venue, which means a constant presence doesn’t always mean shift work. 36 18 Brand considerations in Virtual communities Keep fresh It’s important to keep residents interested in what’s going on at a venue - interested enough to make a return visit Changing features/concepts: Updating the features and functionality of the venue itself and introduce new products/services ideally before they are available in the real world Competitions: Running competitions or sales promotions via the SL venue. Events: This option is excellent for niche audiences. EG. ‘Simulcasting’ Taking a real world event and broadcast/re-creating it at the same time in SL . 37 Brand considerations in Virtual communities Give to the community Everyone likes something for free!! A key element to a SL entrance strategy should be giveaways If you’re seen by residents as simply a company that’s opened up an office/shop in SL, you’re likely to be seen as purely commercial There’s also a good viral element to giveaways which can (if done properly) quickly leverage a brands entrance into SL and spread the net of people exposed to the company 38 19 Example of bad SL presence Lacoste jumping on the SL band wagon? Lacoste entered Second Life: From April 5 to May 2, Lacoste is casting for Second Life avatars to be models in a fashion photo shoot. The competition appears to be a copy of the L’Oreal competition held recently and involves a voting system to choose the top 100 avatars and then the top three male and female avatars will be selected for the shoot. Winners will then share 1m Linden dollars – (that’s about £3,500) Entry on Second life blog - “please stop giving these people free publicity” 39 Summary We believe there are genuine opportunities within VC’s although we should take our time before committing resources as many brands are just jumping on board to claim a presence An idea that mimics another brand, or does not provide a unique benefit to the user may well generate negative PR Because of the dubious user numbers we should focus on creating an experience that will generate interest in the real world and not be overly concerned with the numbers we reach inside the VC We should look to create PR that will reach our target market and not just the advertising industry! We need to provide a genuine benefit to the users as they are very ad aware and generally not welcoming of brands in their space Its important to be transparent with advertising intentions 40 20