Jul 172008
 

I am presenting at this years Advertising and Marketing Summit alongside a nice array of fellow ‘bubbled’ keynoters who are tackling a bewildering range of topics, bulleted below that make lovely Google search strings!:

  • Unleashing the power of brand experience
  • The Consumer is King – forecasts and trends of tomorrow’s consumer
  • Creativity techniques to become an idea generating machine
  • Advertising in new worlds
  • Brand study
  • What marketers want and how they want it
  • The Digital Leaders forum
  • You media – monetising social media
  • The future wasn’t what it used to be – creativity that engages
  • Integrate to engage
  • Word Up – Getting WOM in the mix
  • The broadcaster’s insight
  • Partnerships for success Developing agency client relationships that last
  • The mobile marketing advantage
  • Y speaks – Y we participate
  • The Mobile Marketing Advantage
  • Continual brand repositioning
  • Where can sport sponsorship take a brand
  • The power of emotional branding
  • Brand Relevance
  • 3 mega trends which are redefining consumer engagement models
  • Innovation in the Digital Marketplace
  • The view from the boardroom – the role of branding and advertising to the CEO
  • The broadcaster’s insight – the future of television advertising
  • Experience the message – Profiling experiential marketing
  • The Power of Experience – A high impact marketing programme through a non traditional approach
  • Integrating Optus: Challenge – Solution – Results
  • Revitalising an Aussie favourite – by an American
  • Lovemarks – giving your brand the kiss of life
  • Transitioning your brand into a virtual World
  • New Business Models for a Digital World
  • A Decade of Delivery and beyond
  • Original Content equals engaged consumer
  • Leadership in the digital media
  • The Mitchell Prediction – the media landscape 2008 and beyond
  • Engage don’t enrage

My part of the mix is in the closing stages alongside a Word of Mouth session and it will be fun looking at the near term opportunities now Google Lively has joined the mix alongside a tremendous amount of investment ($345 mill this year already) in new ‘youth’ social virtual worlds. We also have fresh funding being kicked into existing worlds such as Sony and Time Warner’s Gaia Online, and both are very likely going to really kick start a sudden growth in casual world populations of what are becoming known as Generation V (virtual). I will be posting shortly about the sudden growth in Parallel Virtual Worlds, avatars layered over the top of traditional 2D web browsers – stay tuned! My bit of the programme…

14.10 Marketing Opportunities in Social Virtual Worlds 387a6be2bfae954a84e5bc9db296a983 Gary Hayes :: Head of Virtual World Development :: The Project Factory 14.35 WOM Interactive Session 940515f53a10bb6d5b02ddcdaeddd274 Piers Hogarth-Scott :: CEO :: Yooster & Trustee :: VBMA

Full list of speakers here:

International Keynote Speakers:

* Mark D’Arcy :: Chief Creative Officer :: Time Warner Global Media Group (USA) * Steve Simpson :: Chief Creative Director & Partner :: Goodby Silverstein & Partners (USA) * Ian Stewart :: Senior Vice President :: MTV (Asia)

Keynote speakers:

* Harold Mitchell AO :: Chairman :: Mitchell & Partners * Siimon Reynolds :: Co-Founder :: The Photon Group * Karim Temsamani :: General Manager :: Google * Jack Matthews :: CEO :: Fairfax Digital * Rohan Lund :: CEO :: Yahoo 7 * Richard Freudenstein :: CEO :: News Digital Media

* Mike Morrison * Amanda Howard :: Marketing Director for Beverages :: Pepsi * Bill Obermeier, MD Brand Advertising & Sponsorship, Telstra * Graham Christie, Consumer Marketing Manager, Vodafone * Jon Bradshaw, Director of Marketing, Virgin Mobile * Letitia Hayes, Experiential Marketing Manager, Sony * Gary Hayes, Head of Virtual Worlds, Project Factory * David Whittle, Managing Director, Mark * Rob Belgiovane, Executive Creative Director, BWM * Piers Hogarth-Scott, CEO, Yooster * John Du Vernet, Head of Special Projects, Naked * Lyndall (25 y/o)::John Paul (20 y/o):: Michael (20 / y/o):: Janine (20 y/o) * David May :: Director of Marketing :: Jetstar * Ben Wicks :: Group Marketing Manager :: Fosters Group * Bill Curtis :: Managing Director :: CJB :: & Director :: IAA Australia * Heather Leembruggen :: President IAA Australia Chapter :: International Advertising Association * Joan Warner :: CEO :: Commercial Radio Australia

Sep 032007
 

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Virtual Worlds Necessitate Corporations Develop Personality followed by Gary’s top 15 tips to becoming human in the metaverse (and 2D socio-nets).

I have been doing a lot of work moving brands, properties and companies into social virtual worlds and networks recently and in the process I am often forcibly reminded of the divide that naturally exists, in these new worlds, between ‘the corporation’ on one hand and ‘the individual/community’ on the other. The 3D Virtual World is being used in many ways by the natives (aka the public, a bad definition I know), living out their fantasies in a very chaotic but social way. In strong contrast to that we have companies who are naturally bland, characterless, faceless and in the worse cases anti-social.

American Apparel

It is not all bad as we are seeing something very positive emerging and being played out as both sides manouver and become better aligned. We are also seeing the next phase as the early mistakes pull out and leave the new entrants to learn from those errors. So I have collected some of my thoughts below on how companies need to approach the development of their personality.

First though let me explain the title of this piece with two simple examples. I was struck, like many by the documentary film ‘The Corporation‘ which began by explaining at great lengths how similar the actions of large organisations (if they were looked at as an individual) are psychopathic in nature. I quote the definition they use as the basis to extemporize and a taste of that from Mr Monks.:

PERSONALITY DIAGNOSTIC CHECKLIST:
World Health Organization ICD-10. Manual of Mental Disorders DSM-IV
– Incapacity to maintain enduring relationships
– Deceitfulness: repeated lying and conning others for profit
– Incapacity to experience guilt
– Failure to conform to social norms with respect to lawful behavior
– Callous unconcern for the feelings of others
snip…

“A corporation is an externalizing machine in the same way that a shark is a killing machine. Each one is designed in a very efficient way, to accomplish particular objectives. In the achievement of those objectives, there isn’t any question of malevolence or of will, the enterprise has within it, and the shark has within it, those characteristics that enable it to do that for which it was designed.” Robert Monks, Corporate governance advisor

Mac Pc

Of course I am being deliberately provocative in stating this but in the context of an immersive fully rendered world there is a high degree of potential for levels of the above to continue unabated. If a slightly anachistic documentary is not to your taste then the second one will hopefully clarify. “Hello I’m a Mac and I’m a PC” – or translated “Hello I’m Apple and I’m Microsoft (Windows)”. We all know what that series of ads is really saying and it leads into the main part of my post nicely. The PC character in those ads represents dysfunctionality (mild pyschopathy), corporate stubborness, overweight, bad eyes and old school ‘tech’ thinking, whereas the cool Apple dude represents the opposites – friendly, balanced, youthful, innovative and even understanding of PC. Those ads are great fun but they become very serious for the corporations when you start to consider the inhabitants partying in Virtual Worlds deciding which one would to hang-out with. Commercial organisations need to have character and an indentifiable personality in the metaverse and cannot rely anymore on corporate slickness, blandness or aloofness. To engage with audiences and inhabitants in these spaces they need to learn how to be human.

BigPond SL

So I have collected for all those corporations out there wondering how to accepted in the 3D and for that matter the 2D social network, my top tips for those thinking of jumping in or those who are wondering why things are not going right. So before you get hung up on demographics, ROI, KPI, psychographics or the latest fad platform consider what it means to be human and authentic!

One: Understand the Culture by Spending Time There
Make sure you have people who know the culture of the world and who have spent enough quality time inworld across the whole gamut of experience. Do not rely on reports from tourist consultants, so-called emerging media experts who can see an opportunity and sell themselves as folk who know about the world and who may have set up an account and visited it on a few odd occasions. Ask them how long per week they personally use the social network. If it is 10-20 hours then keep talking, if they pop in for 10 minutes a day when they are not busy or taking the kids to school then give them a miss – you will get better advice by going inworld yourself and talking to experienced inhabitants. Also make sure the people who you employ to represent you inworld are extremely familiar not just with the local space they will be hanging around in but the whole social world. Make sure they have a passion for it and are not being forced to go in there – so they can talk to inhabitants about other spaces from experience. This will engender trust and more importantly friendship.

L Word

Two: Be A Part of the Conversation
It goes without saying that you have to be in it to really be in it. Corps can’t sit on the sidelines or be the obligatory wall flower, spying on others at the party. They have to be in there talking, befriending and listening. Just being present is not enough to integrate properly. I have seen many companies entering a space who don’t join or setup groups, never go to other events and meet others which is odd given this is a social network – no different to those dive bar, industry get-togethers in the real world. Finding someone who is passionate in your organisation and who can then commit time is the only way to go. Don’t become the officious big brother, watch-dog. With the advent of voice in Second Life new factors come into play of course. Your company representatives are in there having real time phone conferencing in effect with anyone and everyone who decides to drop in. Think carefully about the things you need to say vs those that will endear you to the community. It makes a lot more sense to talk about the shared experience than saying how wonderful your company is. Organise specific events where you will be expected to talk about the brand vs trying to constantly slip it into social discussion.

Reuters

Three: You Are What Your Environment IS
Just as we can tell an individual from the places they visit or the state of their work and social rooms, the same holds true of companies. Your corporate personality is reflected in the spaces you build. If you look at the native environments vs the corporate ones in the metaverse you can see a world of difference. The commercial ones are often built by a team which has been steered by many, many meetings that have sand-papered away all the risk and character. They end up being designed by committee and as such are not resonant with anyone – apart from the corporate lawyers who can only see ‘safe’. Whereas an organic, rich, deep welcoming space has the opposite effect. I have talked for two years about over representation too. If you build a clone of your office, complex or city you are stating two things – 1) corporate vanity and 2) lack of innovation. You should take a certain level of risk by creating environments that engage before they try to impress or show business control.

NBC

Four: Corporate Avatars Need to have Character
This is a critical point in how to be human in these spaces. Have avatars that have a personality, meaning make sure the person on the other side of the avatar is not some bland company customer relations person who can only talk about the business parrot style. This is the opportunity for your company to really shine and show a different side to herself. Oh yes the lawyers will be screaming ‘disclaimer’ from the rooftops. Well fine go for it and to be literal, have a permanent sign on your t-shirt with the obligatory “the views I express are mine and not that of…” and so on – not suggesting you do that precisely, but you get the point. A community will only start to connect when ‘company’ characters are present. Think of the Virgin empire. They shout personality, that youthful exuberance, those Branson clones – allowing the person inside to come out. They are sadly let down by having to wear the uniform but in these environments you don’t have to be the photo-realistic clone of your real self. Do what the natives do and be imaginative with your representation and the words you deliver.

AOL

Five: Listen, Listen, Listen and Respond
Corporations find it hard to respond because anything of significance has to be rubber stamped by people that all too often have no idea what it really means. “All the inhabitants want SkyDiving competitions every Sunday” – passed to the lawyers who spend weeks working out the liability aspects of that, what if someone gets injured can they sue – until someone chirps up “actually no one can be harmed” and even then they look into psychological torture. By this time the residents are already running competitions on their own land or with a more responsive competitor. Another aspect of listening is not pushing. Too many corporations think that if they blog or stand in the crowd and talk then they are mixing with the web 2-3 communty. They are not – they are pushing it one way and unable to listen to the replies and respond. They become an incarnation of traditional broadcast media. A simple rule here – Do Not Talk in the Community Unless you have the Mechanisms to Respond. Sadly so many corporations just don’t respond to suggestions or in the worst cases do not even acknowledge. This is the most disenfranchising thing there is for someone who is starting to want to make things better, to be ignored by the administrators. This requires some sensitivity at the admin level, which is often lacking if they are hired help or jaded managers.

Pontiac

Six: Rich Kids Shouldn’t Copy
Every ‘expert’ in marketing in Second Life say bring something of value to the community – which can only be defined if you know the world. It may already be there. But even more important is to bring relevance and something new. It is OK initially showing off like the rich kid with some wonderful interactive toys you have bought or giving lots of ‘branded’ things away but you need to go way beyond that. Do something completely different and potentially on a grand scale. The advantage you as the corporation have over the natives is that you really are the rich kid on the block. So don’t set up a tiny cool drinks dispenser, or a shop sized office or a beach resort – be bold and consider multiple islands that offer rich immersive experiences (see previous post on this). You can still be rich and relate to the community – give them places to tell new stories. Too many times I hear “Oh yes the new CorpX sim is OK, the usual shops, club, offices but bit boring and here is the baseball cap – detach”. Offer things that fit with your brand but doesn’t contradict it – become almost like a friendly, approachable benefactor. Also be wary of just buying things that many may have experienced already. Plagiarism is rife in social virtual worlds because of the scale, most people are not expected to get around that much so there is a certain complacency that corporations think that as they are bigger than the others kids, they can ‘nick’ the idea. The community is very sensitive to this. Corporations without imagination are just rich kids, not imaginative rich kids.

Dell

Seven: Be Consistent and Beware of Real World Journalism
Authenticity is about being consistent and not schizophrenic. You will find it hard to survive if you are having conversations in these social networks as one persona then in the real world a journalist requests an interview in which you talk about the community as folk to be manipulated. Most Second Life journalists understand this and will often do interviews inworld, the ones to be aware of are the attention seeking real world journalists who are after something sensationalist to prop up their dwindling traffic rating. Most of these haven’t the slightest idea about integrating into social networks (apart from their own) and will not print anything to do with ‘Corporation Working Well with Community’ stories – they want ‘Community Griefers Attack Corporation’ ones, they sell. Keep well away from that kind of fiction.

But consistency of persona is hard to do across the many social networks as many are abstract (in other words, the 2D, non-real time facebook are a series of panes that supposedly make up who you are) – in the metaverse it is extremely close to real life. What you say, do and who you relate to give real time feedback to those around about who you really are – corporate robot or passionate person. Inhabitants like to come back to places where the ‘general’ experience is known. If they enjoyed it once when they come back they don’t want a different character in charge who is dull or uninterested in them. This requires great effort on the part of the corporation to set a style of interaction with its visitors which must be kept consistent.

ABC

Eight: Do What the Natives Want
Social Virtual Worlds like Second Life and Sony Home are mostly about shopping, media based activities, lifestyle emulation and socialising. As a corporation or brand sitting on top of, or rather inside an existing companies infrastructure you need to be careful to not do what everyone is already doing. There is an attraction in setting up an environment and then setup rental land for homes and shops because that is what inhabitants seem to want. But that says more about the social network than you bringing something to it. It also pangs a little of laziness and doing something tried and tested. The natives also love to make things (well 30% in Second Life) so be really active in encouraging and rewarding that. Get them to design and build your branded play area with you.
Ericsson

Nine: Keep Reinventing Yourself and be Fresh
Remain consistent in character but always have new things happening to show how dynamic you are. Don’t limit it to dances, music concerts or presentations (in SL you can get these everywhere) but go down to the level of environmental decoration, the signs, subtle changes to the spaces and tell people about those changes. But the most critical element of being dynamic is to listen to suggestions from your visitors, do changes on the spot and even do personal fit outs for the loyal inhabitants of your space. Many organisations fail in Second Life by launching with something which then sits there and decays (with no updates). People get bored with people that don’t change and will drift away for new pastures. Invite suggestions for change but always have the resources within your organisation and with your developers (who will often know a lot more than you – having time to spend inworld) to do regular facelifts.

Ten: Share Your Assets and The Paradox of Risk Aversion
Inhabitants of your space will feel more inclined to stay if you provide them with some chance to own parts of it through the opportunity to affect it. Think of this as the rich kid who invites the world onto their mansion grounds for a party. Do not be the party host that goes around sweeping up every time someone drops a few crumbs, they will not return. Instead accept a certain amount of chaos and allow them to influence and have a sense of ownership. You will get more respect for empowering them and allowing an element of free reign. But so many companies are terrified of ending up with egg on their face through griefing or being sued for some copyright infringement that they lock everything down. This just says you as an individual are controlled by lawyers, who cannot express their own mind who as we know are the worst folks to have in any social group.

AOL Skate

Eleven: Don’t Always Try to Be the Centre of Attention
Companies that expect their ‘characters’ to be in control and always leading the conversation will be seen as anything from show off through to bully. Social networks are democratic, your brand is as important to the inhabitants as their own identity or groups they belong to. Do not metaphorically walk into a crowd and pronounce your self-imposed importance, this jars with the whole premise of social networks.

Twelve: Story Environments
By all means create spaces that are really great to hang out in for long periods of time but also try to give the place some history and depth. When your not around you need the evnironment to speak for you by speaking, literally in some cases, with the visitors. So embed or write some history into it, create some myth, make it feel like you have been around for a bit. This depth is attractive to those visiting. See my wikipedia article on this topic here which covers ways you can give yourself (represented by the environment) some back story and depth.

Thirteen: Help create a Trusted Community
If you have followed some of the above advice then you will start to become the space to be, full of character, innovation and depth. As the traffic increases you just wont be able to manage it all by yourself and tensions can result. It is not a bad thing for the company characters to fly off the handle occasionally because of being over stretched with requests, endless IMs and so on – it shows they are human. But this is also a warning sign to start to create tiers of help within the community, namely the most loyal and immersed inhabitants themselves. Give them limited powers but ones that has enough responsibility to make them feel empowered. Set rules up for them that are part of a discussion as to the best ways to operate. If they make mistakes do not slap their wrists, change the framework of how they can operate. Of course the lawyers kick in again here with non-employee representatives (many of whom may not be know in the real world) – but again that wonderful disclaimer can be pulled out of the hat. To think you can manage without community support at admin levels means you will be over stretched as a person corporation, become stressed and in the end find it more comfortable to not be in there in the first place – contrary to all the above.

Billabong Bar

Fourteen: Entertain
It is fine being a wonderful administrator and organiser but you will be looked on to provide entertainment sometimes. You can’t expect your community to just do it all the time. You need to step in on a regular basis to show that you can put on big events. This encourages the relationship and more importantly suggestions as to how to make the events and activities better or develop new ones.

Fifteen: Don’t Listen to Too Much Advice
I would recommend listening to advice from trusted developers who have a track record for creating really good social spaces and not listening to out of world consultants. But in the end go with your gut reaction based on your personal experiences about what you think fulfills the needs of existing inhabitants in these 3D social networks. Having a genuine approach will most likely create a genuine response from your potential community. Remember though at the start you are a tourist and as such not doing anything until you are ready makes the most sense.

Gary Hayes is the Head of Virtual Worlds for the Project Factory and Director of the Laboratory for Advanced Media Production, LAMP. He personally produced and built the top brand in SL Telstra’s ‘The Pond’ and ABC TV (top ten) in several statistics (New World Notes and TPF) over the past 6 months. Recent other launches include Thursday’s Fictions and Melbourne Laneways.

Posted by Gary Hayes © 2007 All Rights Reserved.

May 062007
 

NOTE: Based on my sticky post ‘The Brand Owners Guide to Joining the Metaverse”.

As promised a rough transcript of my keynote talk to CeBit last week based on my experience of actually building some Second Life sims, talking to those who use them and creating branded environments that have more usage than any others inworld, so far. There will be a video and/or podcast at some point from CeBit TV and linked from our Project Factory main site but for now lots of ‘nice’ words and this YouTube video I uploaded…


Hello I’m Gary Hayes and thank you for inviting me here to speak at CeBit this afternoon. I hope that by the end of this very brief introduction to virtual worlds, and particularly Second Life, you will be more aware of the major changes that are happening to what we used to call ‘the web’. Virtual worlds are a new disruptive and transformative medium and one that is becoming a significant force alongside our traditional media experiences. But it is still early days. It is the silent movie era, a bit like TV in the late 40s or the web itself in the early 90s – but already virtual worlds are a place where the audience stops being the audience, who become and create their own stories. For those without any exposure to virtual worlds this talk will be a beginners guide and for those who already know something or a good deal about these 3D shared spaces there will perhaps be one or two surprises, Hopefully we will go inworld too if the connectivity gods are with us.

So what do we mean by virtual worlds. In very simple terms they are a bit like MySpace meets the Local Pub meets YouTube meets The Shopping Mall meets Flickr meets World of Warcraft – ok not that simple. We are really talking about non-game based, online spaces where people create new identities and become a part of a larger resident community. There are often no rules, only those set by the inhabitants themselves, this makes it a particular challenge for brands as we will see later (they don’t like to be told how to live!). Many of you would have heard of Second Life, with nearly 6 million registrations at the moment, but there are many others. Habbo is interesting as a simple isometric service for teens now with 76 million registrations and nearly 8 million regular users. Playstation 3 is about to launch ‘home’, a sort of virtual apartment suburbia connected to other PS3 players and EA games has just teamed up with Endemol to deliver what we sometimes call Mixed Reality (cross-over programmes between TV and virtual worlds). There are quite a few others such as there.com, Kaneva and many new kids growing up on the block such as multiverse, croquet or outback online. MTV Networks used the there.com engine to do some extremely interesting TV/Virtual World cross-over services like Laguna Beach, which I sadly won’t have time to talk about. Common to all of them are people using these shared worlds to interact with others around the globe, for hours at a time.

So what are the forces at work here, what is driving this change? Well I suppose there are two key ones. The first is the shift from humans wanting the internet to be more than the rather lonely and non-real time experience to one where as a “participant” they can have real time, collaborative and far richer immersive social interactions. Note I am careful to not call them, the audience – be aware that any media that still thinks of the residents of virtual worlds as audiences are doomed to failure. The second force at work here is to do with residents in worlds wanting to be far more active, creationist and imaginative. They are creating their own experiences versus passively consuming media, such as on TV or via YouTube for example. You have all heard of web 2.0 (blogs, wikis, flickr – the sharing web) well I like to think of virtual worlds as ‘part’ of web 3.0, the real time, co-creative web. It is still about sharing but in a far more natural setting – this is a space where you can walk up to someone and ask -Where can I buy some shoes and will you come shopping with me” versus typing the word shoes into some abstract search engine on the web and spending hours looking at flat pictures. A question I often get asked is, -Is this hype and something that will go away?” Absolutely not. I am old enough to have lived through the dawning of the web and early failed 3D world services, this is totally a part of that on-going evolution and this will now be here for good. The real question that should be asked, and perhaps the focus of my talk, is how are brands and professionals attempting to integrate into these spaces, will they create a virtual paradise or another dotcom burst?

The thing that’s common with all virtual worlds is the real time shared experience, and that should be the key to anyone thinking of setting up a branded space inside these worlds. Participants want to be just that, participants and co-creators. In a world like Second Life (now four times the size of San Francisco around 210 square miles) and where 99% of the content is made by the inhabitants, for a brand to simply plonk some souless buildings, or theme park, or even well displayed real world product falls way short of what the residents actually want. The message that we are getting from the inhabitants is for businesses to -play with me, don’t sell at me.” This is very important. These worlds are extremely ‘sticky’ and inhabitants invest a great deal of themselves in co-creating the environment and the numbers speak for themselves. In second life at the moment there are over 200,000 unique entrants per day spending an average of 4 hours in world – that’s nearly 1 million user hours, and with a population growing at around 30% per month you can see why many other virtual worlds will be popping up in the next few months and years to meet this demand.

Lets have a look at a very short video (which can also be seen on the Project Factory stand throughout the day) showing some of the social activities, the thing that is really driving demand in these environments.

SELF CUT VIDEO -a montage of a variety of experiences” (in background starting up SL if connectivity for demo)

So a brief taste of what goes on inworld, very experiential activities such as dancing, sport, ‘inworld tourism’, education, collaborative building and so on. These are often missed or ignored by the mainstream press. With my other hat on as Director of the Laboratory for Advanced Media Production at AFTRS I am also active in the educational areas in Second Life where collaborative, experiential teaching is growing into a powerful tool – a very vibrant and active community. But who are the real inhabitants? In Second Life it is far from being just young males. The average age is 33 and women constitute around 43% of the total. Interestingly the time spent gender wise is reversed. Of the total time spent by all participants, females account for 60%. Looking at the international split around 31% are from the USA, 48% Europe and 21% rest of the world. Europe is by far the fastest growing area now with growing numbers of English, French, Dutch and Germans so the servers (currently in San Fran and Texas are in the wrong place!). Back to the age question, one fascinating statistic I gleaned last week from Phil Rosedale, the CEO of the makers of Second Life, was that those over 60 years old spend 30% more time in Second Life than those aged 30. Lets try to pop into world now, hopefully, and have a quick two minute wander.

DEMO INWORLD. This space is called the Pond. The one that the Project Factory produced and built for Telstra BigPond. I am not sure who is around but regardless lets have a look at how Second Life works. That is me, the one with the wings and here I am at the main welcome area. Lets go for a short walk, if we meet anyone we may have a chat. It is important to have a welcoming or totally unique environment, look the ripples on the lake, palms, things to do, boating, dancing and of course a popular pastime, flying – (impro a bit here depending on audience reactions). I would like you to notice too how the advertising and brand presence is not ‘in your face’, more about that later. CLOSE DEMO.

Second life is not just about sex, money and griefing. Griefing, by the way, is a term used to describe irritating behaviour, which actually is extremely easy to control. Most of the stories you hear about ‘virtual terrorism’ is really a toxic combination of unprepared companies inworld and the media that likes to find ‘an angle’, just like the real world then. The Project Factory and other Second Life developers have many easy to implement strategies to reduce this to a minimum.

Onto money and opportunities for brands. For the moment it is about getting in there early (first mover advantage), learning about what works and collaborating with the existing resident communities. This both shows that you are ahead of the curve but also open to really having a direct relationship with your customers and most importantly learning from them. It is a way to reach and understand your existing clients and prepare for what will be a mass audience in a very short time. A recent inworld survey by CB News in partnership with Repères asked over 1000 Second Life residents their opinion of real world brands and there were some surprisingly results. 66% believe that the presence of RL brands has a positive impact on SL and 45% of respondents even want more brands because they enhance and give more credibility to Second Life, a realism and make SL more interesting, by increasing the number of residents. But at the moment we are not talking about mass audiences. Successful brand presences, and two of the recent Project Factory builds in Second Life are in the top five, may have anywhere between 30-60 thousand unique visitors per quarter. These will seem like small numbers to some brand owners and advertisers, but, and here is where it gets very exciting, the inhabitants are spending anything between 15 minutes and 6 hours per visit to your brand! That figure is unheard of in almost any other media even more significant and important for those concerned with reach is that those residents are the most active in the blogosphere, and millions of impressions are generated outside these worlds – they tell of their lengthy experiences in the other social networks.

Shopping in virtual worlds is actually fun for the inhabitants and comes up as one of the most popular pastimes. The ability to browse products alongside your trusted friends is more akin to the mall than eBay of course so this is a real opportunity for those who want to attempt to make in or out of world sales. The more progressive companies are allowing consumers to co-design product and even order real world product from within the environment. A simple example. Very similar experiences to real life are being created in these worlds such the shared ‘media’ experience – listening to music, watching movies with others is pretty cool, you can chat and play-around with your fiends alongside the latest film. Dominos pizza realised this early and now allow you to order your ‘real’ pizza while you virtually watch movies with your ‘distributed friends’. Domino’s IT director Jane Kimberlin said “Second Life is where Domino’s customers are and therefore that’s where the pizza company needs to be too.”

How to make money? As is well publicised (in fact I can’t believe I am still talking about this) Linden dollars is the Second Life currency which can be converted into real world dollars. There are some businesses operating in Second Life that are earning real money selling virtual products. These include clothing, dance animations, selling or leasing property, buying even selling shares and the number of Second Life residents generating more than US$5,000 in monthly income has more than quadrupled to 116 in the past year, according to Linden Lab. Also brands who create product inside Second Life own the IP inworld and more importantly they retain it if they move it outside and create out of world, real product, so great news for inworld R&D. But selling things shouldn’t be your focus. It should be about integrating your brand and becoming a trusted addition inside this unique and vibrant social network. You must add value and not just build and run or build and not be around to welcome your visitors. There are way too many empty branded spaces in some virtual worlds. Lets see some of the brands that have already taken the plunge, this is a short edit of a longer video I compiled on the stand and it looks at a few recognisable names.

SELF CUT VIDEO: Motion grabs of branded spaces in world. 3 minute edit of the longer 30 minute stand one.

Quite a few recognisable brands there, so how are they doing?. Well on Thursday last week I went inworld and using the built in Search/Places facility which brings up the standardised traffic figures I looked at the ‘dwell’ traffic for each of them. Dwell is not just how many visits but how much of their inworld time they spent with each of the major brands. Also the inworld traffic measurement is the only real way to compare like with like which is why I am showing it to you. So here are the results.

1. BigPond – 18139
2. Pontiac – 13832
3. IBM – 12850
4. Showtime (L Word) – 7233
5. ABC TV Australia – 6898
6. NetG Training – 6536
7. Mercedes-Benz – 5656
8. Nissan – 4269
9. Mazda – 2827
10. Dell – 2759
11. MTVN – 2317
12. Toyota – 2119
13. Sun Microsystems – 1728
14. Sears – 1596
15. Sony BMG – 1560
16. Cisco – 1521
17. Adidas Reebok – 1351
18. Sony Ericsson – 1242
19. PA Consulting Group – 1138
20. Circuit City -1089
21. Reuters – 1019
22. BMW 842
23. Intel – 829
24. AOL – 797
25. NBC Universal 745
26. American Apparel – 596
27. Starwood Hotels – 35

Great news for Australia with BigPond and ABC (built by the Project Factory) in the top five and this is months after launch, so outside the hype curve. But why are some of the others so low? All those wonderfully designed, branded buildings with lots of things to do? Well to me a couple of the critical elements that many brands have missed are –
Firstly- Creating spaces that are just really nice to spend a long time in. Sounds simple but many corporate builds are just cold and too representational. They should be organic, of value and welcoming and where inhabitants can create their identities inside their own stories. Of particular note is the outback bar area of the Pond which is currently in the top ten of all second life brands itself on a ‘dwell’ basis, but more importantly it is part of a mix of features and functions that you need to create.
Secondly – A space where the inhabitants can create or contribute to the environment. So both The Pond and ABC have sandbox areas where residents (particularly new ones) learn to build and add things to the branded space. Also requests for changes from the visitors to the existing build should be taken seriously and acted on. Give them a sense of ownership of the space and they will thank you which will build trust.
Thirdly – Be authentic and talk to them at an equal level. Too many companies still talk down to their customers as their avatars do the ‘hard sales pitch’ thing. This is a real opportunity to show the human side to the brand, give it personality and again that insight will be endearing to the residents. A major consideration for many brands is to actually commit ‘real life’ people to be in the environment with the visitors 24/7. If you think you wont be able to collaboratively manage the community by factoring in the human resource follow-up, it might make sense not to start at all.

Advertising in these worlds are often seen as a big no, no from those inworld. Especially the old in your face, irrelevant, broadcast ad model. One thing we are experimenting with at the Project Factory is personalized and targetd advertising. This is not some Orwellian (or Minority Report) nightmare, more a way that the environment (at its crudest level ad hoardings) will change dependent on who is around them but there are many more subtle ad R&D experiments we are trailing. We, like many other developers, are learning as we go along and will never assume that this sort of functionality will prevail. An area that we definitely believe is here to stay is allowing residents to creatively interact with your brand or product. So let them co-design new product with you and listen to what they say about your existing products or services. Never before have brands had this opportunity to be so close to the consumer, you are in there with them, in real time, collaboratively.

Companies succeed in virtual worlds when they take much more of a lifestyle approach to their marketing. Whether you choose to go down this road and participate or not, Virtual Worlds will remain to be one of the most compelling ways we will interact socially and commercially in the future. The Project Factory’s virtual world services are also about merging the real with the virtual and creating experiences that are interactive, social and immersive. It is a very exciting time to be involved now at the dawning of this very real, virtual revolution. I hope that this brief talk wheted your appetite. If you want more come talk to us on our stand and check out the website listed here.

Thank you and time for a few questions?

and not mine but a great video about potential for brands (albeit slightly smoke and mirrors re: the interactions in this video) from Text100 and thousands of views on YouTube.

Posted by Gary Hayes ©2007

Apr 272007
 

Gary Hazlitt orates 01

The Second Life builds I did for Telstra BigPond and ABC TV (interview with me at SLOZ and also here at CeBit about this) have been very successful (via The Project Factory) and I have been ‘sucked’ into doing several keynote, panels and seminars about this exciting development. The growing maturity (2nd generation) of brands, business and advertising in Virtual Worlds are very much in the zeitgeist at the moment (see previous Milia posts for example and from Brad Howarth) and for those around the Sydney area here are the event dates and some abstracts about some presentations I am giving in this space – (below them is some very interesting brand statistics from Second Life…)

May 1 – CeBit Keynote. “A Brand and Media Survival Guide to Virtual Worlds” (I will be speaking alongside Google and Mozilla amongst others)

Thirty minutes to get up to speed with a revolution. Gary takes you on a whistle-stop tour of three-dimensional virtual worlds and the opportunities for your brand development. He will attempt to navigate the complex maze that is the relationship between audiences in worlds such as Second Life and companies that are looking to create a presence there. What do people actually do here? How can you reach them?

A recent report by Gartner says that 80 Percent of Active Internet Users Will Have A “Second Life” in the Virtual World by the End of 2011 and Gary will explore the reasons why virtual worlds are transformative and immersive. He will analyse some of the key statistics about the naturally communicative audience and ask “Is this really a revolutionary web 3.0, the real-time, collaborative 3D web or another bubble about to burst?”.

May 2-5 – Delivering a “Business in Social Networks and Games” at the LAMP/CSB residential helping previous LAMP projects develop business models.

May 10 – “PR opportunities knocking in virtual worlds” at the 8th National Public Affairs Conference.

More than 850,000 users are spending real time and money in virtual worlds such as Second Life. But will the craze last, and how valuable will it become for PR?
– Abigail Thomas, Head, Strategic Innovation & Development, new media and digital services, ABC
– Gary Hayes, Director, LAMP and The Project Factory and architect of Telstra and AFTRS Second Life projects
– Mark Jones, IT editor, The Australian Financial Review

May 15 – “Business in a Virtual World” at an AIMIA Intimate. I am both moderator and panellist.

Virtual worlds, such as Second Life, are getting a lot of publicity. Of particular interest is the bustling economy developing in these worlds. Business is booming and some people are making serious money. The ABC and Telstra both have presences in Second Life. Come along and hear industry experts from Habbo, Legion Interactive, KPMG, Swinburne Univ and others discuss:

– The popularity of a virtual existence.
– The appeal of setting up a business in Second Life, or any other virtual world.
– Doing business in a virtual world and the ramifications.
– The new virtual marketplace – what marketing principles have changed if at all?
– The future of virtual worlds – how sophisticated will these worlds become? What will be the ROI? What challenges lie ahead for the companies behind these worlds to maintain a vigorous economy and vibrant community?

Date: Tuesday, May 15, 2007 Where: The Shelbourne Hotel, “Altitude” level, 200 Sussex Street, Sydney. 6.30pm for 7.00pm start 7.30pm your chance to ask questions and then back to mingling 10.30pm bar is closed.

May 20-25 – “LAMP: Story of the Future.” Directing and leading a special LAMP Residential for a week in Tasmania with eight cool projects with an emphasis on rich narrative, destined for Virtual Worlds, Games and Cross-Media distribution.Phew, lots on. I will post my CeBit keynote here next week for those who can’t pop along to Sydney, Australia but before I go one thing I will be referring to is how branded ‘spaces’ in Second Life are doing, comparatively. On Thursday morning I did a snapshot of the traffic across all the main brands in Second Life and came up with something surprising:

1. BigPond – 18139 2. Pontiac – 13832 3. IBM – 12850 4. Showtime (L Word) – 7233 5. ABC TV Australia – 6898 6. NetG Training – 6536 7. Mercedes-Benz – 5656 8. Nissan – 4269 9. Mazda – 2827 10. Dell – 2759 11. MTVN – 2317 12. Toyota – 2119 13. Sun Microsystems – 1728 14. Sears – 1596 15. Sony BMG – 1560 16. Cisco – 1521 17. Adidas Reebok – 1351 18. Sony Ericsson – 1242 19. PA Consulting Group – 1138 20. Circuit City -1089 21. Reuters – 1019 22. BMW 842 23. Intel – 829 24. AOL – 797 25. NBC Universal 745 26. American Apparel – 596 27. Starwood Hotels – 35

Statistics were complied at 11am 26th April and a little about how the traffic figures are calculated from Linden Lab.

Traffic is a number for each parcel which is based on the amount of Residents who visited, and the time spent on that parcel out of their total time inworld that day. It’s calculated using a complex algorithm. Every user gets a set number of traffic points to give out during the 24 hours between midnight and midnight. Any parcel of land that the user spends more than 5 sequential minutes on gets counted as a place that they spent time. The user’s points are then evenly divided between those parcels. So, if I was online for 1 hour and spent 20 minutes on resident A’s parcel and 40 minutes on resident B’s parcel, resident A would get 33% of my points and resident B would get 66%. Alternately, if I only spent 5 minutes online and spent all of it on resident A’s land, she would receive all of my points.

The images below are grabs a day or so later to show a comparative methodology, the only real way to compare like-for-like using the search/place traffic data built into the interface.

SL Stats BigPond 02

SL Stats Pontiac

SL Stats IBM

SL Stats L Word

SL Stats Mercedes

SL Stats Nissan

SL Stats BMW

SL Stats AOL

SL Stats NBC

Lots more projects now in development via the Project Factory to build on the foundation of the Australian brands that are themselves moving into a third phase – keep an eye out here 😉

Posted by Gary Hayes © 2007