Jul 302009

Running the Australian Laboratory for Advanced Media production I often have to provide a broad contextual background (as well as detailed insights!) to many of our seminars and labs. Over the past few months I have presented across a range of topics suggested in the blog title and lucky for some these have been captured in video form! So the player below contains (for now) seven separate presentations, a mix of free informal evening ones through to more formal full day workshop intros. The video production value is variable so I add the audio only versions at the bottom too and there are links to the other many great speakers at each session, detailed below the video box. These are unedited and contain the usual umms, arrs, errors, coughs & pregnant pauses, oh and I hope some great content. All are 16by9 apart from the serious games in 4by3, Enjoy

  1. SOCIALIZED TV 2.0 – 17m © Gary Hayes Director LAMP @ AFTRS and CCO of MUVEDesign (slideshares here)
  2. GAMES: SERIOUSLY – 35m © Gary Hayes (slideshares here)
  3. VIRTUAL STORY: THE ART AND CRAFT OF MACHINIMA – 42m © Gary Hayes (slideshares here)
  4. (Seminar Intro) THE RISE AND RISE OF SOCIAL MEDIA – 13m (slideshares here) © Gary Hayes
  5. FREE AND EASY (seminar intro) – 10m © Gary Hayes
  6. IPTV FUTURES – 20m © William Cooper Head of Informitv (live Skype video interview with Gary Hayes)
  7. MULTIPLATFORM INNOVATIONS – 22m © Giancarlo A. Mori Senior Vice President, ANIMALLOGIC Interactive. (live Skype video intro interview with Gary Hayes)

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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 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?



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…


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.


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)


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.”

Web 3.0

 Posted by on August 27, 2006 at 10:12 pm  Add comments

I have posted prolifically about MUVE’S (Multi User Virtual Environments) in the past, concentrating mainly on the ever customisable Second Life. It is interesting to watch the buzz spreading and consider if virtual worlds are really web 3.0, I think so. A quick look at the evolution of the intraweb from the mid 90’s. From text and graphics dominate 2D environments, immersive web sites with flash quickly followed combined with ubiquitous communication via IM and IRC chat. Then the early 00’s with the expontential growth of self publishing, blogs and wikis. From 2002 onwards the massive sharing social network communities of flickr and YouTube in sync with the explosion of portals containing all of the above in services such as MySpace, Yahoo and MSN etc: We are heading towards a rich media personal hub that points to and houses all of our ‘shareable’ content. But the current 2D web, mostly linear to linear linking, is about to be enhanced by virtual environments in which we meet as avatars, interact as 3D moving objects that takes sharing, co-creation and communication to the next, predictable level. The important component here is real time collaboration and communication as the paradigm shift.
Web 1.0 to 3.0

Web X.0. To me evolution of the web can be defined in single sentences:

    1.0 the pushed, one way only web
    2.0 the two-way shared web
    3.0 the real time collaborative web (3D, isometric or just 2D)

A sign that this is reaching a level of maturity is when big brands and subscriber numbers start to escalate. This item entitled Second Life Targets Existing Branded Web Communities succinctly sums up some of the major changes in one MUVE.

Major companies such as Major League Baseball, and institutions such as The University of Southern California, have already turned to Second Life to host virtual events synched with live real-world events. Organizations such as the New Media Consortium are using Second Life to convene meetings and conferences. Wells Fargo is teaching kids about finance in an engaging manner through Second Life. Clothing designers are using the community to prototype their designs and get community feedback and build buzz before they have to manufacture.

In 2 years time will the most effective way of communicating be through a variety of MUVEs rather than 2D web? As Second Life subscribers go above half a million, from less than 100 thousand less than 6 months ago one can see other players beside Linden Labs taking part of the action. Here are the Second Life stats from yesterday to give some idea of the scale

Statistics from 3:20pm Saturday 26 Aug 2006
Total Residents: 568,856
Logged In Last 60 Days: 256,425
Online Now: 8,369
US$ Spent Last 24 Hrs: 357,140

Many of the projects we are doing in LAMP start from a position of ‘experience design’ that has its ultimate incarnation in letting the users ‘live’ the story. Personalizable MUVE’s will shortly have real potential to enable any experience requirement you can throw at it. As the gaming generation take up lead roles in society (the average age of a Second Lifer is 32) I really believe that remote communication will exist more and more in virtual worlds. Entertainment, education and business is already taking root. The article continues by even pointing to the political engagement these environments afford…

Imagine a wiki-based web community now being able to collaboratively design detailed 3-dimensional objects, complete with nuanced permissions, instead of just text documents. …Imagine a dark horse political candidate with a virtual campaign headquarters in which campaign volunteers can collaborate regardless of geographic location and be trained personally by the avatars of real campaign staff, and where the candidate can conduct a virtual whistlestop tour to test new stump speeches and conversations with highly educated, affluent, and socially networked focus groups

Current MUVE’s do require decent computers, graphics and bandwidth but many millions of terminals are already capable. There are many posts that talk about a ten year from now predication of what a Virtual World may be, many not looking too deeply into the ethical or moral issues as that really is an unknown as this quickly cobbled together chart above suggests I think we are lucky to be at the dawning of ubiquitous MUVE’s across all devices (mobile devices are part of distribution in this context – not a movement in itself). The next challenge as I always point out is interoperability – how our personalized digital fingerprint can exist across an ever growing range of portals. To put it another way using the present day, can out MySpace profile work with our Second Life avatar, our flickr and YouTube accounts. Will our eBay positive rating be carried into World of Warcraft, can Amazon engines learn what we are buying in Second Life to recommend things to buy from eBay and so on. The brand and advertising targeting potential goes off the scale here. The first company that comes up with a profile engine that combines all of the above, sits above them, cross-relates them but needs to get started right now before it becomes way too complicated 😉

Posted by Gary Hayes ©2006

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