Yes Virginia, There is Business Value in Second Life
This is one of those posts where you’ll inevitably learn more about the person behind the keyboard. But hey, they say authenticity is critical for us social media geeks so I suppose it’s all good. I’ll start with a confession: I “play” Second Life. Yes, my name is Kelly and I am a Second Life (SL) addict. Whew, there. I said it. I admit this because it should hopefully give you some background on my perspective. And perhaps it gives me a bit of street cred, which I think is important for what I’m about to tell you.
I’ve been personally involved in SL for over a year and a half. I also write a blog on Second Life–well, actually, my avatar Cindy does. I first arrived to Second Life upon the request of my corporate boss who asked that I venture into the virtual world and help determine if there was any value in using Second Life in a business or marketing capacity. Needless to say once I arrived I was hooked.
I admit it has taken me this long to form an opinion on whether SL was just Barbies for adults or if businesses or brands could, in fact, utilize the social networking or virtual submersion aspects of it for marketing or business benefit. Wait no longer, my verdict is in. And yes, I do think there are important uses and applications for Second Life as a business tool.
Perhaps some background on Second Life and virtual worlds is in order for those not familiar with it. In its most simple terms, Second Life is a computer-generated 3-D virtual world where you inhabit an avatar and interact with other people within the construct. There is an entire economy within Second Life where you can buy and sell real estate, homes, clothing, objects–just about anything to make your Second Life more pleasurable. It’s primarily considered a social networking tool, but because of the 3-D nature of environment, the applications and opportunities are far greater than simply building communities. There are, of course, myriad other aspects to Second Life including photography, art, music, and breathtaking design. But my focus for this post is the marketing or business use of SL.
There are a variety of examples of companies using Second Life as a tool for business and branding, the least of which is IBM. Back in November 2007, IBM announced a $10million investment in Second Life and other virtual technologies. Other brands like Dell, Intel, Coca-cola, Saturn, and Coffee Mate–to name a few–are experimenting with marketing in SL. Dell Island includes a life-sized computer your avatar can submerge into and walk around; Intel owns a training island and has sponsored several other music and art events within the world; Coca-cola has had brand placements; Saturn built virtual cars to distribute to SL residents; and Coffee Mate hosts a coffee house music venue where musicians perform live in world.
Despite all this activity, I remained unconvinced corporations could realize significant ROI by adding the social networking tool to their marketing mix. That is until recently. The other day a friend of mine walked me around Vassar College’s virtual campus within SL where I visited a miniature but exact replica of the Sistine Chapel. I also met someone who had pulled Google Earth into Second Life and combined it with 360 degree photography of certain locations and news stories from those locations. I realized we could soon immerse ourselves into news stories–like Darfur and Myanmar–and feel what it would be like to be there experiencing those events in person. These particular incidents ignited my passion for the various innovation happening in Second Life and inspired me to rethink how businesses or brands might benefit.
I think the barrier I had in seeing the corporate opportunity was that I was applying 1.0 branding and marketing methodologies to a 3-D, 2.0 environment, and wondering why they seemed stale and invasive. But as I saw the innovative ways companies and developers were mashing up content and creating compelling experiences within SL, I realized there was great potential in reaching audiences with content that would enhance their experience, rather than invade it.
So if you’ve been skeptical yourself of the possibilities of Second Life, I suggest you take another look. According to Business Week, Gartner predicts that by the year 2011, over 250 million people will be involved in virtual worlds like Second Life. And, like all social media, there are right ways and wrong ways to go about using the medium as an effective marketing tool. You may want to contact a consultant–someone well steeped in Second Life culture–to help you navigate this complex domain. Millions of Us is one of the preeminent providers of consulting and design services for brands interested in building a presence within Second Life.
Or you could just log on, pick an avatar, and explore on your own. That’s what I did. And it changed my life–both of them!
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Friday, June 6th, 2008 at 3:38 pm
From a developer’s perspective I see SL as very full of potential. Academical, recreational, and financial potential…
Perhaps it’s what Neal Stephenson had in mind when he wrote Snow Crash back in 1992.
Unfortunately demands in my First Life deprive me the time to do more than poke around in SL, but I hope to carve out some time soon to delve more deeply into it.
Saturday, June 7th, 2008 at 10:30 am
Second Life will never really take off until it improves its 3D capabilities. The challenge probably isnt Second Life, but probably Intel, who is constantly launching horrible 3D cards. If you have any pull with them, please help.
Sunday, June 8th, 2008 at 3:28 pm
I think all the buzz last year around SL was confusing 2 related but separate things.
1. the cool nature of 3D worlds and what could be done from a marketing perspective.
2. Second Life and the community of people there.
Is there a business case for SL? Yes, if that’s where your customers are.
Is there a business case for 3D capabilities in Marketing? Absolutely and we’ve barely scratched the surface there.
Monday, June 9th, 2008 at 10:37 am
@Paul - so I agree and disagree. SL is constantly plagued by server issues that often accompany exponential growth of infrastructure. If you play SL you know what I”m talking about. Most crashes aren’t due to graphics cards but to the servers at Linden Labs. That said Intel has the greatest market share of graphics because of their integrated graphics chips in laptop computers. Most major gamers don’t play on laptops but on tweaked out and overclocked desktop boxes they built themselves using discrete cards. HOwever, the fastest growing gaming market in the world are women between the ages of 30 - 45 because of games like Second Life. And this market is much more likely to play on laptops with integrated graphics. The newer laptops continue to include more powerful integrated graphics cards that render SL and other games better and better. And yes, the older ones don’t provide nearly the experience our growing demands require (In my house I have two laptops & two desktops with different hardware that each run SL a bit differently).
Thursday, June 12th, 2008 at 10:35 am
I agree with @Tac that if your customers are in SL then in makes sense. Cisco has also invested in SL and I have been involved with a few campaigns.
With that said, I’m not a big fan of SL (although I do like the concept) because I think the technology still gets in the way of the communication. The fact that you would suggest a consultant “to help you navigate this complex domain” illustrates my point. If SL can simplify the application it could have a lot more potential.
Thursday, June 12th, 2008 at 11:21 am
@LaSandra - Yes, there is a large barrier to entry to use Second Life. It takes awhile to learn the ropes, like many other games.
I’m not sure I understand your point about a consultant. I suggest a consultant for SL marketing just like I would if a company didn’t know anything about social media and wanted to implement SM some tools or campaigns. Consultants know the landscape and can help a company approach new environments with sensitivity to the existing community. If I were a SL consultant, for example, I would never suggest a company do mere brand placement in the world because it is almost more intrusive than a television commercial that interrupts your favorite show. But if a company can harness an innovative 3D tool to tell a cool story, then the residents are likely to come and check it out.