Apr 042010
 

Been heads down writing, commercial development, life & course dev. I am now lecturing on (and running one of) two Multi Platform courses in Sydney, plus just out the other side of a big personal move to a new part of Sydney. All this combined with other blogs I am group posting on (eg: transmediadesign.org) and lil old twitter becoming a good micro-blogging, link alternative means this blog is starting to be devoted to article, resources or richer content – when I get the time. But I have a back-log of 15 drafts that will be pushed out (excuse the pun) in the next few weeks! Also busy putting a book together called ‘Networked Media Design – Multi Platform Production’ – so some of the good stuff trickling out there, more distilled rather than the temporary stream of consciousness here – but that will all change very soon.

1. ANECDOTAL CHANGING MEDIA FAMILY – HEAVY RAIN ON EASTER SUNDAY

How much time do we spend with different media forms? I am with my partner’s family down in Adelaide, Australia for the hols and on Easter Sunday have just been part of a bizarre ‘new’ ritual. I say new because in the past Easter sunday may have constituted a quick morning choco egg hunt, followed by lunch, a film or two, some topical TV and even radio later in the day during meal times. How far we have come?

A family group of two pre 10s, three early 40s and two seniors have been gathered around the hot family PS3 playing Heavy Rain for 7 hours! Yes you heard right, from 10am to 5pm we played, talked about, watched, shouted, got emotional to a ‘video game’ – all the time discussing the next moves, ethical questions, plot points, social aspects and production value. The kids were doing most of the driving while the rest of us took the back seat giving them directions and choosing some more of the subtle ‘conversational’ or plot options. I tweeted this ‘social’ game event as Parallel Access Gaming – as in this new form of media consumption some of the family simultaneously experiencing the game as play, others as an emotional cinematic event (complete with film music & inciting narrative) with everyone cycling between, action and passive. Typical?

@garyphayes easter sunday revelation – Parallel Access game Heavy Rain – kids play/drive, moms/aunties strategize, grandparents discuss story arcs

2. SURVEY HERITAGE MEDIA CREATORS AND MANAGERS – DAILY MEDIA vs LIFE TIME

This reminded me to do a post on another special demographic group who are often (anecdotally) associated with spending more of their daily time with cinema, the arts, TV or radio (traditional / heritage media). At several seminars I have been running over the past couple of years for traditional media creators/managers I have asked over 105 of them to fill in a little survey I devised – imagine a typical week or month and construe from that an average day spent with media & life events. So over the past week if you averaged it out, how much TV per day would you watch, how much on social networks, how much playing games and so on.

Two sets of questions:

Heritage media and life time – Sleep, Eating, Travelling, Books, Live TV, Live Performance, Conversation, Sports, Live radio, Cooking, Newspapers, Family Stuff, Cinema, Education, Pubs & clubs

Social, online entertainment – Email, On-demand music, On-demand video, Console games, Social network, Online games, Online video, Shopping online, Mobile – SMS, Uploading, Twittering, Collaborative writing, Writing blogs, Research, Forums

The purpose of this was to see how closely their life/media time balance matched the stats I was presenting from the likes of Nielsen, Forester and other ‘notable’ research who were obviously taking larger samples than my 15 at a time and what I publish here – 120 anonymous respondents. The results were rather surprising and the age ranged from around 19 up to early 50s across heritage aspirants and established creators. I start with a couple of charts at the Gen Y end, film foundation students which shows some detailed online time followed by my special aggregation that compares key groupings.

On-demand and online entertainment


Continue reading »

Feb 162009
 

I have blogged long and hard about the future of the metaverse and particularly how key sectors can make use of them as a functional tool. Education are already motoring, social activity is still the key driver, artists use it for music, video and performance and buying/selling ‘user to user’ businesses are still strong. One area that has received most contraversy is of course ‘real brands’, a so called exodus and ‘really’ what is the ROI. I published over at my MUVEDesign VW development site, a first stab at where I think we are on the Gartner Hype Curve for social virtual worlds (not game worlds!). Here it is again (linked from my flickr account).

Gartner Hype Cycle SVW

I do believe we are probably at the lowest ebb for brands in second life. This is bourne out by the SL brand stats I founded over at The Project Factory – you can see the dwell traffic for most brands outside the top 10 are exceedingly low. That doesn’t mean its game over. Far from it, as the lessons are learned and now it is time for companies to get it right, by avoiding developers that focus on build it and run (yes they are still here) and deliver experience, social interaction and relevance. I cover this in a lot more detail in posts back in 06-08!

Andy Mallon over at the Social Research Foundation has published a nice Annual Surver PDF report which is an inworld survey of Second Life users who ‘know’ second life – vs the tourist reports we often get from fly-by-night journalists or Gen Y social marketeers who don’t get it! Heres the blurb on the report (seeing I use the nice charts below!) Gotta earn my keep 🙂

The First Opinions Panel is the largest consumer research panel in Second Life with 10,000 members from newbies to the most active and involved “residents” who, Own the most virtual land, Spend and earn the most money there, Spend the most time there, an average of over two hours a DAY!, Run the most groups. Over 1,000 of our members own one or more groups in SL, many with hundreds to thousands of members. These are the leaders in Second Life. They are studied by over 33 demographic and psychographic attributes from both their real and Second life.

Firstly the longevity for users in Second Life. Remember that at the moment there are between 60-75 thousand users inworld at any moment and 31% spend an average of TWO HOURS a day in Second Life – 2/3 spend at least ONE hour a day! The next question is what is the churn rate, how long do people actually hang around using the service?

srf_howlonginsl

srf_slinvolvement

So Second Life is perhaps not ‘for life’. It seems many folk do tire of it at around 18 months with only around 20% going for longer than two years. Again this isn’t a real issue for brands as the culmulative user hours across the board puts Facebook, YouTube and other social spaces to shame.

This culmulative dwell is also on the increase. Get a user loyal to your brand and you may have them for longer than a year. Which seques nicely onto how do those inworld for these long periods actually want to interact with brands…

srf_brandinteraction

The item that stands out for me is ‘product development’. This has been consistently under utilized so far and there is still a big gap in the virtual marketplace for a big brand to really go beyond designing a hotel layout or fantasy coke machine. I know one brand will be stepping up to the mark this year and demonstrate how powerful this aspect can be. One item that is missing for me is brands ‘presenting’ to inworld inhabitants and facilitating ‘Ted talks’ like events rather than that being the domain of academia only. The SRF published a few choice statements from savvy inworld folk that reinforces several of the key points I and others have been bleating about for years.

  • “Don’t advertise to me – give me something that does not waste my time – make me want to learn more about by entertaining me, informing me or educating me. And make it cool.”
  • “Don’t just expect to do normal marketing – you have to hold events and interact with people”
  • “Bringing real world products inworld is the next inevitable evolution.”
  • “SL is a great way to reach those whom may need services that you may not reach otherwise. ”
  • “Real life companies tend to create great places but just leave them behind. They should assign some people to stay online and accommodate those people who visits their places in Second Life.”
  • “You have to engage people in SL, not simply put up marketing messages and expect residents to flock to you.”

The survey goes beyond well trodden areas too by asking about their Real Life Primary Job and how Second Life has been an enabling tool for it. It is no surprise that learning, collaboration and meetings are high on the list but what will become more and more significant will be real world recruitment – gauging a persons abilities and/or personality inworld. Kelly, Accenture and others are already versed in this space.

srf_primaryjob

With the level of doom about brands in second life this question goes to the heart of what activities are on the decline. So looking at this chart the shorter the bar the better and running RL businesses in Second Life is the least in decline. (It is not clear from this chart if surveyed folk actually answered all questions so will leave it a little to your imagination as regards a true split here)

srf_sltrends

As a finale and related to the above, Clever Zebra’s Virtual Worlds for Business 2009 is now out as a free publication looking at VW for business applications. Unsure of the ‘enterprise readiness’ of all ten worlds author Nick Wilson highlights companies that are already sold on VW for meetings at least – which is slightly contradictory to him saying, expect to be logged out of meetings regularly? Anyway in the free report here are a few quotes from the document:

Dell “Employees report that they are more engaged in the 3D environment than on a conference call and that they feel more involved and apt to participate. An added side benefit is that this pilot project affords Dell the opportunity to experiment with moving toward a greener future where more and more employees work from home, not the office.”

IBM “IBM estimates that they saved approximately $250,000 by taking the conscious decision not to hold the Virtual Worlds for Business conference (normally a 2.5 day in person meeting) physically this year, and more for the Annual General meeting (normally a 3 day event for 400 Academy members and affiliates).”

Sun “Sun were able to transform an otherwise exclusive, expensive event into an inclusive inexpensive one open to a much wider audience of junior engineers who would benefit from the real learning experiences provided in a virtual setting. They were even able to get Hal Stern, Snr VP Systems Engineering to come in and do 2 full chat sessions exclusive to the virtual component of the 2008 CEC.”

Jan 072009
 

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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.

GROWTH OF WORLDS

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.

HIGHLIGHTS OF 2008

– 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.”

Dec 112008
 

…and a little end of 2008 Virtual Worlds, State of Play…

Broome Australia 2008_07

Just back from a short break in the lovely town of Broome in NW Australia (my pics). It was interesting being disconnected from ‘the cloud’ but in the process having a few ‘virtual experiential’ moments. One of these was watching the controversial film ‘Australia’ in the worlds oldest picture gardens, Sun Pictures (pictured below). Several parts of the film are set in an open air cinema in the 40s and it was so odd to actually be ‘in’ more or less the same scene of deck chairs, insects buzzing around – as the real sun set, the wind blew off the Northern Territories outback while the film panned around those environments, and lizards crawled around on the screen, bats flew overhead, propeller planes took off from the nearby Broome airport and in the audience several from the Broome aboriginal community. A kind of forget 3D lets get to 4D film experiences.

In other parts of Broome I talked to a few people about some of my work, y’know, the web, cross-media, film and virtual worlds (and just like those low hanging fruit journalists who are constantly predicting the end of 3D worlds) even out here in the styzx a couple of folk suggested that games & social virtual worlds especially will really suffer in this economic downturn and may not survive. Which leads to the point of this post to put things in a little perspective.

IS THERE REAL INVESTMENT?

First lets look at investor confidence in them. From Virtual Worlds Management Reports there was $1 billion US invested in 35 virtual world companies between Oct 06-07 – and since Oct 07 to the present day there has already been $918 million trusted to the success of this particular industry. This breaks down roughly as:

  • Q3 08 – $148.5 million invested in 12 VW companies
  • Q2 08 – $161 million in 16 VW companies
  • Q1 08 – $184 million in 23 VW companies
  • Q4 07 – $425 million in 15 VW companies

As a topical reference, and to put things into heritage media perspective the total spend on all film and tv drama in Australia in 07-08 was $420 million US (at current exchanges). Now the majority of these worlds invested in are youth based but many specialised ones aimed at the Gen Y hole (see kzero.co.uk charts for more info) that are focusing on key niches. These start to fill in the gaps that ‘generic’, jack-of-all-trades, social virtual worlds such as Second Life cannot truly cut the mustard as sub-builds inside the service. So we have recently had in the last week the to user launches of a dedicated real life buy with real cash Virtual eShopping just in time for XMas and what will be a real winner in my view (having just tried it finally) the social sports virtual world, Football Superstars which combines EA-like footy with there.com-like social activity and even has a bit of WoW-like quest giving challenges.

The social aspect of virtual worlds are not lost on the big consoles either with the Launch of XBox and PS3 virtual worlds that I covered in a recent post and also the Inquirer’s article Sony, Microsoft begin battle of Virtual Worlds. I was going to talk a lot about how during hard economic times people turn to escapist activities. In the past it used to be film or TV, but now there are many more choices and as we haven’t seen a global economic downturn of this scale since the 2nd world war – the escapism of choice is now immersive interactive media. This will not be lost on advertisers who also need to optimise their spend across the many variants of shared social worlds.

Shared Social Worlds Diagram

BUSINESS WAKES UP

Savvy businesses have now moved beyond the hype bubble of Second Life’s superficiality and realise the power of social collective collaboration. As well as education and science virtual worlds as ‘tools’ are developing into major economic government initiatives. The Athena Alliance have released a report called “Virtual Worlds and the Transformation of Business” with some optimistic summary lines.

The rise of the collaborative enterprise that is likely to result from the successful deployment of Virtual World technologies will usher in a new era of business. It will change the way firms compete with one another for customers in both goods and services industries. It is our firm belief that if our nation accelerates the development and maturation of Virtual Worlds, it will encourage a more collaborative and enterprising form of business. This will lead to greater innovation, sustained productivity, and competitive growth in the world economy.. the companies and workers can use the tools of Virtual Worlds to transform the United States into a collaborative enterprise-driven economy.”

The use of virtual worlds for simulation is not lost on the military either. This goes way beyond using first person shooter games to train late teens for an army life using well, first person shooter game technology in war zones. Last week the largest global simulation conference ever was held “The Interservice/Industry Training, Simulation and Education Conference (I/ITSEC)” focused on the use of more social virtual worlds for training and education for military and scientific use. It was keynoted by General Wallace, the Commander, United States Army Training and Doctrine Command who talked with other big government players about the likely hundreds of billions of dollars that will be invested in virtual simulation technology. As we know most media developments have come about from love and death, porn and war. So this growth as always will resonate in the commercial entertainment industry. An example of how military and education are mixing here is The University of Florida recently announced too that it will be spending $1.25 million on building a Second China for the US Foreign Service and Military to understand the culture without the need to go there and fail-forward.

“The goal of the federally funded research project: To educate and prepare foreign service or other government professionals to arrive in the country prepared and ready to work.”

SHOW ME THE VIRTUAL MONEY

On the money side there is a great deal of research now going into how virtual world economic models and currencies will evolve from a range of closed systems to a state that may become viable alternatives to ‘real world’ currencies. The Virtual Economy Research Network just had an interesting article on the VW freemium model – free-to-play but encourages the adoption of the inworld currency rapidly, for example.

A brief look forward and in terms of users of these worlds there is going to be a big acceleration over the next 3 years with a recent Instat report suggesting that “registered users of virtual worlds are expected to exceed 1 billion” by 2012 and total revenue is expected to exceed US $3 billion. The majority of this revenue is not from an expected subscription or advertising but “90% of their revenue from the sale of virtual items, currency, land, and fees associated with these items”. Finally a reason why there is even more investment in youth worlds “70% of the more than 300 million registered users of virtual worlds are younger than 18.”

Forester and MillionsOfUs have just published a report looking at how traditional corporate business will begin to flourish in these spaces and to quote their executive four point summary:

  1. It grants unprecedented depth of engagement with consumers. Second only to inperson
    consumer meetings, virtual worlds allow marketers to get up close and personal
    with individual consumers. Using these interactions to allow for feedback, creative tasks,
    and just plain fun creates brand and product advocates in the user base who go far beyond
    in-world influence.
  2. It taps into an audience that is difficult to reach via other channels. Today’s virtual
    world users are seen as a minority vanguard for future usage, but they are also difficult to
    reach via other channels. This is especially true of youth groups and deeply creative
    communities supported by various virtual worlds.
  3. Newer worlds offer better opportunities for cross-channel tracking and more
    targeted audiences.
    Early virtual worlds, while technically groundbreaking and providing
    the necessary foundation for future worlds, often lacked audience-tracking tools and were
    open playgrounds without a specific purpose. New, recently launched worlds or those just
    around the corner will offer better tools for customer tracking and tend to target gamers,
    youth, conversation, or other specific tasks, rather than just being open. This allows better
    brand alignment and campaign integration.
  4. Virtual merchandizing resonates with youth — and can be very cost-effective. Virtual
    items and other digital assets resonate with Gen Y consumers far more than with older
    (physical-media-loving) consumers. They appreciate novel, unique items and accept brand
    involvement in these items and their distribution — provided it has been thought through.
    Needless to say, the creation, storage, and distribution of virtual items can be very costeffective
    compared with traditional merchandise like t-shirts and caps.

There is no decline happening. So journos, nay sayers, please look at your own industries please. To reiterate the above examples are social or simulation virtual worlds and there are around 78 currently being used by 360 million people. I haven’t touched on online game worlds or offline games which starts to turn the whole affair into a $40-50 billion industry overtaking movies (including home entertainment elements too). All suggestions are that VWs and Games will be the dominant entertainment form and a widely used tool for business and education and revenues will start to match that of the $300 billion TV industry within five years time. A big issue for me is the lack or real courses in higher education in this space too. Most training is on how to use software to make fps console-type games, there needs to be a paradigm shift otherwise media education will be irrelevant as the heritage media linear form falls into the background.

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Now tell me again that these wacky 3D worlds are about to disappear?

To finish I will be adding a presentation I gave at the Online Distribution and Business Collaboration Conference two weeks ago as it contains many references to the above post…hold your breath…