Apr 072009

With my Director of the Australian Laboratory for Advanced Media Production hat on I often front our workshops and seminars with a kind of ‘trawl’ across the area being presented by specialist speakers. This means a rather high level view of services, key examples and robust case studies that provide a foundation for the other speakers and also a taxonomy, a shared language, for any later workshop elements. There have been two in the last two weeks on TV 2.0 and Documentary 2.0: Serious Games and I have just put my slides up on slideshare – embedded below. The two below are an interesting pair.

tribalisationI believe that these two areas of transition clearly indicate the major shifts taking place at the moment, already predicated as you see in the Marshall McLuhan clip. The first in this post is the TV form which is now being developed and evolved by global online communities deciding on the more social, tribal (niche) and participatory video format over the regimented, formulaic, commercially focused TV we have seen unchanged on prime time in the past 30 years. The second presentation below is on Serious Games or Documentary 2.0, the nature of learning about real world issues, the evolution from passive through to play. Rather than being force fed a series of edited perspectives in traditional documentary TV style, now we immerse ourselves in the dilemma, the scenarios and understand them by (as I point out in the presentation reference to Edgar Dales Cone from 1946) Direct Purposeful Experience. First though…

Television 2.0 – The Latest Innovations in Online Video The first seminar was looking at the future of online video from a TV 2.0, participatory and socialized TV perspective. Again the issue here was a definition of TV followed by some kind of structure on which to talk about the many and various incarnations of ‘the form’ as it starts to spill out across online communities and portals.

What is TV?

  • The device or screen?
  • The distribution channel?
  • The form, types of programmes?
  • What is that form? “Popularist, often live, linear video or something far more social & interactive?”

Breaking the hundreds of examples of TV moving from broadcast to shared, socialized and participatory into meaningful categories was a problem so I stuck to three simple ones:

One-to-many broadcast

  • Reversioned TV
  • Socialised TV

Many-to-many & 2 way

  • Participatory TV shared video content. Democratized, disintermediated, de-attached

Measurability – New Monetization models – value add & innovative services around the video content e.g.: personalization

Before my embedded slideshow (which includes ‘comic-style bubble’ commentary done quickly after the event!) I embed a short clip (which I showed from around 3:38 onwards) featuring a real futurist Marshall McLuhan whose now ancient words provided some sobering perspective to my talk about the disintermediation of TV and other media forms. We all talk long and hard about the new social paradigms but 50 years ago this was already clearly in the zeitgeist – albeit referring to rather scarce distribution channels but highly portentious of where we are close to being now (thinks ‘twitter’ as the drumming 🙂

and for those who think the decline of print is a 2000’s thing here is some of the latter part of the interview (remember from 49 years ago!) that I didn’t have time to show –

Interviewer “Look lets back up a bit Marshall. If more books are being used, more being sold, the libraries are crowded they are busy, how can it be said, aside from what ever else is happening, we are moving out of a print culture?

McLuhan “As John said books are still very important but their role is changing. The nature of their importance is changing. Remember that books were our first teaching machine and during the Renaissance our only teaching machine. Books are what gave the renaissance its peculiar stance. We had to see the world and others through the printed line on the page but today there are many media of information, many teaching machines.”

Interviewer “By teaching machines I presume you are not only referring to those found in the classroom?”

McLuhan “No, we learn everywhere. The books role has diminished. Because of all the other actors it’s no longer King but subject…Notice the shift in the image. From the assembly line stretched out, events taking place one at a time to the modern automated complex where things happen all at once. Bang. Not a line but a field. This applies not only to products but to people. The line, the individual, the event was the book. The field, the all-at-once, the tribal drum – the new medium”

Documentary 2.0 – Serious Games Seminar Workshop

My introduction to the wonderful world of Serious Games wasn’t without its challenges. Firstly the deeper you look into the area the more you discover a veritable black hole of titles. Literally thousands of console, 2D web based, 3D MMOGs, CD ROMs, locative play, connected DVD’s, Social network widgets, educational virtual worlds – endless places that serious play or games exist or have existed. But as well as the quantity problem we have the issue of how to classify them, break them down into meaningful ‘chunks’ so we can understand them. Finally there is the problem of definition – what exactly is a serious game? So before the embedded slideshow – I pulled out a little definition I came up with and more importantly a taxonomy which we used in the workshop.

Generic definitions from others

  • Games that are NOT entertainment ?
  • Games that are simulations ?
  • Games that are: infotainment, edutainment, advergames, therapeutic, propaganda…?
  • Games that are used by education, training, health, public policy, defense, and strategic communication ?

My definition

  • Goal orientated ‘play’, often in real world scenarios, intended to ‘improve’ the player/s knowledge, awareness or skills

OK my definition could feasibly include ‘entertainment’ titles but it does raise the question, is a game such as GTA4 or Mirror’s Edge or Assassins Creed actually providing real world training? I would say to a large extent yes – so the field is even broader. So the taxonomy I developed is focused on the intention of the game. What did the creators ‘intend’ the game to achieve, what result would be achieved for the player/s. I developed this list and naturally found a few games overlapped across some of the areas but surprisingly a lot less than broad definitions such as ‘edutainment’! Here is the list (followed by the actual slideshow with examples of each area):

Gary’s Top Ten – Serious Game Taxonomy YOUR INTENTION WITH YOUR GAME IS TO:

  1. raise AWARENESS of issues
  2. train MOTOR functions
  3. develop SOCIAL skills
  4. develop sudden onset CRISES response skills
  5. develop HUMAN CAPITAL and workforce
  6. improve MIND & BODY
  7. develop BUSINESS prowess
  8. improve ORGANIZATIONAL management
  9. improve CREATIVITY
  10. impart KNOWLEDGE
View more presentations from Gary Hayes.

View more presentations from Gary Hayes.

Mar 122009

Dying? More in the middle of this post – Thought I would share my lil’ introduction slides from ad:tech 2009 earlier this week. It is such a short time (each panel is given 50 minutes) to cover such a vast area and myself, Jeff (habbo.com.au) and Mitch (SmallWorlds.com) were all struggling to impart tons of great info/examples and have enough time to get interactive. I hogged the first 15 minutes by giving a broad overview and some examples I have been involved in that fitted the brief of the talk.

Below are my slides,  a little descriptive text below that and at the bottom of this post some deeper insight into SmallWorlds (given most of my readers probably know Habbo already? – If not, Why Not!? ). I included one slide from Jeff Brookes set looking at Hitwise’s stats on browser worlds and other sites in terms of session length which will raise a few eyebrows!

Virtual Worlds & Business: What’s The ROI?

Virtual worlds are maturing at a rapid rate and brands are realising there are valuable business opportunities within them. Whether the objective is engagement, research or brand presence, virtual worlds are proving to be a legitimate marketing channel. In this session our panel will look to provide insights into the business benefits of working within a virtual world.


  • Gary Hayes, Director, Laboratory for Advanced Media Production, AFTRS & CEO MUVEDesign (Australia’s leading SL developer!)
  • Jeff Brookes, Regional Director – Asia Pacific, Sulake Corporation (habbo.com.au)
  • Mitch Olson, Co-Founder, SmallWorlds.com

There were several important messages in my introduction. Firstly making sure we all understand the different platforms social virtual worlds are operating on so I briefly described

  1. Layered or Parallel worlds – cute 2D type avatars that move over the top of 2D web
  2. Browser Worlds – walled garden that run inside web browsers, often as isometric views as flash or shockwave
  3. Client Worlds – anything from 20MB to 3GB downloads of data and the world is obviously much richer than browser worlds but do need higher spec computers
  4. Console Worlds – a relatively new kid on the block, social spaces that exist on games consoles. All the rendering grunt is there and the avatars are often linked to the PS3, Wii or XBox360 real life account. PS3 Home is the easiest way to match to worlds like Habbo or There.com
  5. Note there are hybrids of the above and  I would put ExitReality down as a hybrid of 1 and 3 as it turns a web page into a client style world

Here are the images of the above part of the presentation


I decided that a good ‘spine’ to hang the introduction on was the sort of negative questions floating around from those who don’t really understand what’s happening with web 3.0, the live virtual world space. This includes the paranoid printed press, a few out-of-touch businesses, and digital media companies/consultants more interested in iPhone/mobile games or Facebook widgets which is something they can truly explain (read: make money off).

Press hyperbole or myths?

  • Virtual Worlds are on the decline?
  • There’s no one in them?
  • & people don’t spend long there?
  • They are for kids or social ‘games’ not business?
  • There are no marketing models?

But I then addressed each question in turn showing real world stats and examples which turned all of these on their heads. Obviously in recession investment in new tech/services are going to be hit and recent reports do suggest a minor consolidation of investment into kids worlds, hinting at a lowering of VC in the ones I highlighted in my presentation, but this whole area is still something education & business are advised to R&D and understand fully – as a minimum. As we know it will be new ways of doing business, more immersive and efficient ways to collaborate and alternate forms of entertainment that will be partly what will bring us out of recession. Some reports even say that investment is high regardless (hat tip Mitch)

For Virtual Startups, There Are VC Funds Aplenty

If there is an economic crisis, then it isn’t impacting any of the startups making virtual goods, online games or virtual worlds. In just the last month alone, three companies have raised mega-millions from venture capitalists.

  • Greystripe, a games-related advertising network, raised another $5.5 million in funding, bringing its total to $15.6 million. We have covered them in the past.
  • SuperSecret, a San Francisco-based online social gaming company, raised $10 million in Series A funding led by Opus Capital. They are targeting the tween market and hoping kids graduate from Club Penguin or Webkinz to their offering.
  • Offerpal, a startup that links virtual currency to real-world marketing deals, raised a whopping $15 million in funding late last month from D.E. Shaw Ventures and others.

The investor interest in these startups mirrors the growing popularity of social games and virtual worlds, especially among younger web users.

I finished the talk with a quick overview of the main models that virtual worlds (and most online games) can be monetized. Items 1, 3 and 4 were picked up in a talk on the 2nd day of ad:tech looking at how Nike engaged with console ingame campaign experts Massive across a few platforms.

  1. Static Advertising
  2. Promotions & Sponsored events
  3. Virtual Goods & Product Placement
  4. Dynamic InWorld Advertising
  5. Branded Spaces
  6. AdverWorlds & AdverGames

After my talk some great examples from Jeff Brookes from Habbo followed by Mitch from Smallworlds. I am always fascinated by the methods Habbo engages with its loyal and large community and was equally fascinated by Small worlds thinking too and how they are ‘integrating’ themselves with the existing 2D social networked web. This video by the infamous Robert Scoble features Mitch Olsen and Ted of SmallWorlds

They talk about the main traditional world features but then go onto the interesting areas of embeddable worlds (the Google Lively Killer app – not exploited), API integration with almost anything (twitter feeds, YouTube vids, FB updates on walls anyone) and the most interesting ‘missions’. You are encouraged to explore, meet folk, shop and basically get involved – Mitch says this is like the LinkedIn profile thinking, until your profile is 100% filled in you feel like you are missing out. I likened it much more like World of Warcraft, set players tasks, set them group tasks, give them rewards. This to me could be SmallWorlds real killer applet. At the moment they have around 400 000 users and that looks set to take off in the next months.

Tony Fendall blogged about a particularly cute feature that allows (his words) –

One important thing which was missed is that they didn’t have time to talk about all the cool micropayment features (which Ted alludes near the end) such as Gambit, OfferPal and Zong. Gambit and OfferPal are both services which allow users to earn SmallWorlds currency by completing tasks. These tasks include things such as answering surveys and give amounts of currency proportional to the amount of effort put in. This is a great way for players (who may not have a credit card) to still be able to earn a premium SmallWorlds experience. Zong is a simple cell phone payment service, where by users can pay for a premium SmallWorlds experience using their mobile phone. For an excellent look at how we have integrated Zong into SmallWorlds, check out this YouTube video created by the developers at Zong:

Feb 032009

rocketoncomedyIf RocketOn grows at its current rate it may be the follow-up to Twitter as a real time, web 3.0, animated avatar, 2D web integrated social application.

It will of course need much more sophisticated friend and group management and the following/followers paradigm would work wonders here. But no doubt the company have lots on the boil along these lines?

I have written for the past year or so about those half-way house virtual worlds, avatars that exist as a layer above the traditional, flat 2D web in posts here and here.

Leader of the pack of these ‘parallel’ virtual worlds (I still prefer layered btw!) by some way is San Francisco based RocketOn which now has 114 000 unique active users of the service that primarily operates as a browser plug-in. CEO Steve Hoffman has told me of some key developments that will lift the service firmly out of beta. First and foremost are six major new partners that will expose RocketOn to more than 2 million potential users.

RocketOn Launches Beta with Comedy.com, Hypster, Online Flash Games, Hotspot, faceDub and Boosh Magazine. Parallel Virtual World Platform Goes Live – “Imagine what it would be like if you could join a virtual world on your favorite site and interact with everyone on that site,” says Steven Hoffman, CEO of RocketOn. “And what if you could also take your same avatar to any other website and meet people there?” The result is a parallel virtual world that spans the entire Internet, where users rocket through cyberspace with their avatars and interact with virtual environments on any site they choose.

rocketontrafficdemoHaving used RocketOn for some time on and off it reminds me of the web equivalent of the flash-mob – adhoc social gathering where you share brief experiences with others, ‘above’ web content, sometimes very compelling. It is fascinating too that there is a strong female demographic (67% in the US) suggesting parallel worlds being seen as (and used) as social vs ‘gamey’ space. More interesting in the stats is the high proportion of 12-34 year olds – often the ages where usage of social virtual worlds tends to dip. So RocketOn is definitely feeding on the traditional Facebook and MySpace network.

So the real time social element is best suited to comedy music, video and casual games where a live, real time’ness is key. Being able to call your friends together for activity and discussion around primary content in this way perhaps turns the back-channel (as in textual chatter) into the front-channel (where physicality comes into play). There is something about synchronous fun (and learning, there is a killer app hidden here for remote learning folks) over full screen video too – so RocketOn over full screen web video starts to remind me where IPTV was meant to be heading back in 2004! Participatory TV via the web back door anyone?

Here is the official press release that is going out today Feb 3rd

rocketonhypsterParallel Virtual World Goes Live

SAN FRANCISCO, CA — February 2009 — RocketOn, Inc., a venture-funded startup located in South San Francisco, is rolling out its virtual world platform by embedding virtual worlds on partner sites. RocketOn’s partners range from comedy, music and game sites to community networking sites and college magazines.

“Our goal”, says Bryan Suchenski, partner manager, “is to build social interaction and community on our partners’ websites, thereby weaving a virtual environment into the very fabric of the Web.”

RocketOn has built a platform for easily embedding virtual worlds into partner sites, allowing their users to interact in real-time with one another. Every partner site is part of the overall community, and with the click of a button, users can take their avatars anywhere they like on the site.

“Imagine what it would be like if you could join a virtual world on your favorite site and interact with everyone on that site,” says Steven Hoffman, CEO of RocketOn. “And what if you could also take your same avatar to any other website and meet people there?”

The result is a parallel virtual world that spans the entire Internet, where users rocket through cyberspace with their avatars and interact with virtual environments on any site they choose.

“What caught our attention about RocketOn is the potential for a new type of real-time social interaction on our site,” says Cahit Onur, CEO of Online Flash Games. “We felt this would help build customer loyalty and extend our brand into the virtual world space. We’re happy to be working with RocketOn and are open minded about new projects and ideas.”

RocketOn is announcing six partners now, with more to come in the near future.


Comedy.com is one of the Web’s leading comedy sites. It combines the best collaborative filtering tools along with exclusive, original-themed content, best-of-the-best lists, and timely topical material. www.comedy.com
Hypster is a music discovery site, offering Facebook, MySpace and Friendster users a personalized music player and playlists. www.hypster.com
Online Flash Games is a popular Flash games community. www.onlineflashgames.org
HotSpot is a community networking site to meet new friends, where users can store or share photos, create blogs, and share interests. www.98spot.com
faceDub develops fun and easy software that allows users to insert their faces into any scenario.
Boosh Magazine is the newest name in college entertainment. Boosh puts a unique twist on the whole ‘college magazine’ market and comes direct from a network of student columnists across the country. www.booshmagazine.com


RocketOn is a venture-funded startup that is pioneering parallel virtual worlds. Its management team has worked at top game publishers, including Sega Sammy (SGAMY) and Electronic Arts (ERTS).

If you’d like more information, please contact:

Jan 072009


Reflections by me? Been a bit slow off the mark blog wise this year as endless layers of projects overlap and blogging has fallen off the list. But there are some goodies about to be blogged here, just simmering, almost ready for serving. Smell that goodness.

For the moment though two of my ‘thinks’ that others published for me. The first from Bettina TIzzy’s great (‘What the World Needs Now is‘) Not Possible in Real Life (NPIRL) blog who posted a selection of my slightly half-baked thoughts re: virtual worlds. Following that, also featuring SL & Telstra, a rather positive retrospective from ITWire extensively quoting me, about how companies can engage properly, The Pond is a build I created back in early 2007.

OK to the post. I know, a lazy re-posting but there are a few nuggets in here…over to NPIRL.

Gary Hazlitt turns the page on 2008 – What happened and what’s coming in virtual worlds

Sydney-based Brit and marketing wiz, musician, composer and rich content creator in virtual worlds Gary Hazlitt (aka Gary Hayes), is already done celebrating the incoming year, while we wait for a few more hours in the Western Hemisphere for 2009 to arrive.

Gary, who studied physics, is the director of the Australian Laboratory for Advanced Media Production (LAMP), and also heads up Virtual Worlds for the UK-based The Project Factory, for which he produced the highly successful and eminently revistable (as the traffic numbers indicate) Australian Telstra and ABC Second Life presences.

I welcome Gary’s guest blogpost and knowledgeable take on the recent past and the coming adventures of virtual worlds. Happy New Year, everyone! – Bettina Tizzy

In the social Virtual Worlds context, 2006 was about hype… another new frontier ‘kid-on-the-block,’ but became about fast bucks and cheap and cheerful PR. We saw that bubble gently burst in 2007 as the realisation that one world in particular, Second Life – (which is still the leading example of culturally created virtual content), was really about creative communication and artistic expression versus the local shopping mall or a crude business tool.

Last year, 2008, we witnessed a distillation in what Second Life (and by implication other customisable worlds) is really about, leading to a proliferation of new, niche virtual worlds meeting the cultural and entertainment needs of much broader demographics. We effectively saw the ‘fat’ surgically removed from Second Life and an acceptance that this new medium and form is still in its very early days, but in 2008 there are clearer reasons for being a part of the social web mix:

1. An immersive expression of community – Facebook and MySpace-meets-World of Warcraft. This community can create their own environments or swarm around trusted film, TV or lifestyle brands, too.

2. For business, it is more about a place to meet, present and recruit and far less about brand awareness, product sales or vacuous hype. The business model in 2008 clearly came into focus: the community selling to itself – brands needed to court existing inhabitants very carefully.

3. For education, Second Life is one of the most efficient tools in the learning process. Education becomes democratised, everyone can contribute and learn equally, remote learning is far more compelling, fun and immersive.

4 A creative tool. Second Life, in particular, showed significant maturity as we saw a higher number of serious live performance (CARP Cybernetic Art Research Project, NMC, DanCoyote Antonelli, for example), a record number of in-world ‘machinima & TV-like programs’ and by far the largest array of creative statements from virtual environment artists, many members of the NPIRL group. The quality of ‘experience’ creation from talented musicians, designers, photographers, artists, etc., reached new heights.


Investment across the board – more than $900 million US invested since Oct 2007 – has moved away from generalist worlds like Second Life to more focused niche or user base environments with many starting to exhibit core game elements. These include those with renewed investment after new’ish launches: vSide, Football Superstars, Stardoll, Home, IMVU, Metaplace, Multiverse Places, and Music Mogul.

Towards the end of the year, console social worlds came onto the scene. XBox360 and Wii are very similar in ‘cartoon’ aesthetic, whereas Sony is far more game focused. All have very similar business models – create a space to hang out and be ‘tempted’ by games/film/merchandise. Although these are not yet places for community creation, they will soon learn that to keep inhabitants they will need to be or, like Google Lively, have to pull the plug. Embeddable or layered worlds began in 2008 and are likely to be significant in getting people used to real time communication through ‘representational’ avatars – vs text based ‘social network’ profiles. Also, Facebook worlds like YoVille or Vivaty, or layered worlds like Rocketon or Weblin that are embedded on the existing 2D web. The dominance of the likes of Club Penguin and Webkinz at the tweens end of the spectrum will be duplicated through teens and gen y’s as a series of new, highly focused and targeted social worlds launch next year. This has already begun with Football Superstars and Music Mogul but expect to see many more – including several with user created content as a feature alongside the virtual economy.


– Graphics in Second Life become teenagers. Still some way from the likes of Crysis, Second Life Windlight turned the world into something far more fantastical for many. It added layers of light, glow and control to a previously very ‘flatly lit’ world. We still wait for dynamic shadows, better environmental sound and an even more useful scripting language (post Mono), but this was a paradigm shift for environmental artists.

– Some companies got it! There was not a plethora of companies or brands entering Second Life but those that did had continued success as they concentrated on the social (people) rather than ‘product’ aspects of their business. Although the Pond leads in dwell terms, new entrants like Warner’s Gossip Girl have done exceedingly well. Car companies still do well even though Pontiac walked away from Second Life, and Toyota, Fiat and Nissan are always in the top 10 brands.

– The quality of machinima across all social and game worlds increased exponentially this year and a growth in communities watching ‘documents’ of the worlds they spend most of their time in. In addition to some machinima appearing in heritage media (“Molotov Alva and his Search for the Creator” and HBO/Cinemax, for example) there has been a growth in long form game-engine films and notably many more serious issues tackled.

– The New Worlds. A fracturing, as it became obvious that Second Life cannot be all things to all avatars – so nearly 70 other worlds all showed up on the radar. Many are focusing on niche interest or are highly branded. Several of the new ‘jack-of-all-trades’ entrants will learn that enabling community creativity and an economy is absolutely necessary. There were several walled garden/locked content mirror worlds and builds in 2008, which will learn to be not about ‘broadcast’ spaces, and realise that their worlds are far more significant than modelling what is around us – “In augmented and online virtual worlds, humanity will exponentially evolve, free from the limiting ghosts of that other virtual world we called reality”.

The second item appeared following my presentation at the Online Distribution and Business Collaboration conference from November 2008 in which I hurriedly went through some good inworld and game marketing case studies. Kathryn Small here picked up on why Australia’s BigPond is working really well – and no, it is not all about the broadband capping situation in Australia. Most of the regular inhabitants are on other ISP’s – anyway the article covers my thoughts on this and I have a much longer analysis with stats for the nearly 2 years it has been active, in the pipeline. (Also worth mentioning something about the item at the start of this one – Tourism Victoria didn’t withdraw its funding, Multimedia Victoria requested I take down a temporary ‘trial’ build of Melbourne Laneways – which had an original 3 month ‘learn as we go’ tenure on ABC Island. Otherwise a good item below.

Despite reports, Telstra and Second Life remain inseparable
By Kathryn Small 28 November 2008 02:20PM

It’s a match made in heaven: Telstra is Australia’s biggest telco and ISP, while Second Life is one of the world’s hottest social networking tools. So when the media reported that “the game was almost over” for Second Life, Telstra was quick to defend its investment.

Recently, Tourism Victoria withdrew its advertising funding from Second Life’s ABC Island. This prompted Deacons technology and media partner Nick Abrahams to comment to The Australian that “the drop in commercial interest in Second Life had been noticeable over the past nine months”.

Abrahams said that at any given time, fewer than a couple of hundred Australians might be in Second Life.

But virtual worlds expert Gary Hayes said that virtual world ratings should be measured in engagement and user hours, not just hits.

“Immersive online experiences need new metrics, and marketeers and academics are realising that social worlds do provide the potential for very high dwell figures,” said Hayes.

“Facebook has 65 million users on for just four hours per month. 132 Americans watch YouTube but they watch only about five minutes per day or 2.5 hours per month,” said Hayes.

“Second Life (and other social virtual worlds) has the highest rates of loyalty and stickiness of any social network generation, more than 50 hours per month per user.”

Hayes said that Telstra’s islands, known as The Pond, had a steady stream of around 50-100 users at any given time.

Telstra spokesperson Peter Habib quoted figures compiled by The Project Factory which said that BigPond’s islands were the most popular in Second Life.

The Ponds were founded in March 2007 with 11 islands (now 16) which have hosted virtual concerts, ANZAC Day commemorations and even New Year and Australia Day events.

BigPond recently hosted an AUSTAFE event which involved live streaming of the event from Adelaide into Second Life.

The Ponds also contains five residential islands for users to build themselves virtual real estate to live in, at near 100 per cent occupancy.

Telstra spokesperson Peter Habib told iTnews, “BigPond’s commitment to innovation, interactivity and entertainment in Second Life is a key part of our success.”

Habib said that BigPond has opened a virtual in-world service kiosk that allows Second Life users to interact with BigPond customer service staff in a virtual way.

Hayes said that The Pond’s approach to customers differentiated it from many other brands.

“The real success of The Pond is more about the regular events, the creativity of the builders who often come from the community, elements of nationalism, and many of the organic spaces that promote stickiness by their ‘ambience’ rather than superficial interactivity. This has been a real differentiator.”

Habib dismissed the concerns of other providers with success on Second Life.

“While other companies may not share BigPond’s successes, we are more than pleased with the popularity of our Second Life islands”

Hayes said that companies might not succeed in Second Life for two reasons. First, that many brands were brought into Second Life for the wrong reasons, and with misunderstandings about the social network. “You cannot build into a social network and not be social,” said Hayes. “Early entrants simply did not act human; they acted like a corporation, and built clones of the real world, and didn’t think experientally.”

Second, Hayes said that companies needed to change their offering to virtual customers.

“We are seeing the natural exodus of ‘showroom, build-it-big-and-boring’ brands and the settling of second generation ‘social’ and ‘purposeful’  brands. So The Pond, Accenture, Playboy, The L Word, and about five other key brands are really getting to grips with setting up a virtual base in a social world.”

John Brand, research director at Hydrasight, agreed.

“Only organisations who want to be perceived as ‘bleeding edge’ should ever have been involved in Second Life in the first place,” said Brand.

“Now that Second Life is entering its relative teenage years (measured in Internet years at least), the early adopter bandwagon has well and truly been jumped on.”

But Brand (edit: Hayes) noted that Second Life is not the only virtual world.

“There are at least 50 other mainstream entities and the total audience (according to a trusted site on this topic, KZero) is well over 300 million. In the second quarter of 2008, $161 million was invested in 14 virtual worlds, in the first quarter $184 million put into 23 virtual worlds, so the total this year alone is $345 million across 37 new worlds.

“Australia is a tiny market compared with Europe, Asia, South America and the USA, so fluctuations are highly likely. The fact that the user base of one virtual world fell by 23 per cent in a year is common with any service coming out of a hype phase into a stable mature phase.”

3 pages