Marketing in cyberspace
Posted by Jason Dunstone on August 12th, 2007 at 12:57pm
Do you live in Second Life? Virtual world Second Life reports to having eight million residents, increasing by 20% each month. While this is lower than the more than seventy million on MySpace, it is still impressive. Second Life reports to generate US$1.6 Million [AUD$1.8 Million] transacted every 24 hours. Are you missing out on a marketing goldmine?
Those who have already established presence in Second Life include Harvard University, Toyota, IBM and Adidas. Second Life is attracting interest from businesses keen to explore the new marketing opportunity.
The Adidas outlet opened with an introductory product the a3 Microride. Like a real-life shoe, the Second Life virtual-shoe provides “the ultimate blend of bounce and flexibility with minimum weight.” The virtual-shoes retail at about US$0.20 [AUD$0.23].
Toyota is the first carmaker to enter Second Life. It started by giving away free virtual vehicles of its Scion brand. It then broadened the range and Second Life users can log into kiosks in ‘Scion City’ and buy a Scion for $US1 [$AUD1.2]. They can then customise it with real-world and fantasy accessories.
Toyota hopes that an aftermarket develops as residents of Second Life customise their cars and sell them on, thus spreading the brand virally. In Second Life, Scion is looking to sell the empty space and buildings in Scion City to young entrepreneurs. They are planning to have cultural events, like music concerts and movie screenings, as Toyota grow in the community.
In June 2007 a survey report prepared by the Second Life Research Team investigated the acceptance of virtual worlds amongst its users. The survey of 250 Second Life residents revealed some interesting findings. Most are willing to provide personal information and purchase products via Second Life, with 42% willing to use their credit card. Second Life was viewed by its users as improving collaboration, communication and cooperation between people.
It will be interesting to observe the evolution of websites such as MySpace and Second Life. The influence they are currently having on how we market and sell and products may be minor, yet it is clear that the trend is towards an increasing prominence.
Professor David Corkindale from the University of South Australia’s International Graduate School of Business considers marketing in virtual worlds of no surprise. “The market economies we live in require that this basic activity is undertaken wherever people congregate. If the virtual worlds attract people to them they will also attract those with a commercial purpose to get involved – it will ever be so. If people gaze at the full moon and it is possible to beam a message on to it, someone will want to pay to do that!”
As with much of the new technology and rapid advancements we are facing, the efforts are going into observing and seeking ways to be innovative in virtual worlds. Seeking creative ways to find and engage with audiences is ingrained within marketing. It is exciting to think of the future of marketing in cyber space.
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