Giant consumer brands are taking notice of the explosive growth of virtual worlds. And these companies are using virtual worlds to build brand awareness, test products, and even sell merchandise.
One of the most popular virtual worlds is Second Life, a 3-D world that is created and owned by its residents who act out parallel fantasy lives. They have jobs, they date, they build houses, they go shopping, they attend concerts. They can even, um, well, you know, do the old posteurpedic polka. I’m not kidding. Pretty much anything you can do in the real world, you can do in a virtual world. And consumers are spending a significant amount of time there.
Second Life uses linden dollars, which players buy with real dollars to conduct business with vendors within the game. They can purchase virtual products such as homes, real estate, clothing, accessories, and more.
Starwood Hotels & Resorts used Second Life to launch its newest chain, Aloft. Starwood views the SL crowd as early adopters who can provide valuable feedback to its real world efforts before the actual chain is launched in 2008.
Toyota created Scion City, where avatars can customize Scion models and take them for a virtual test drive. Their goal is to engage and involve consumers in a way that reaches well beyond the boundaries of traditional marketing.
Other companies with a presence on Second Life include General Motors, Dell, Cisco Systems, Sun Microsystems, Adidas, H&R Block, Reebok and Reuters Group. IBM has acquired 24 Second Life “islands.”
Even ad agencies are getting into the game. Leo Burnett set up shop with its “Leo Ideas Hub”.
But are any of these companies actually generating revenue? American Apparel has sold over 4,000 items, which members use to outfit their avatars. And while this probably doesn’t represent a significant revenue stream for the company, American Apparel is driving virtual shoppers to its brick and mortar locations by offering them a 15% discount.
Virtual worlds present an interesting opportunity for marketers to interact with consumers in a way that conventional marketing doesn’t allow. Time will tell whether virtual worlds become a viable marketing strategy for companies, but in the meantime it’s difficult to ignore their growing popularity.
Is your company thinking about entering the virtual world? Do you think it’s a good or bad idea? Do you think virtual worlds are the future of marketing or a passing fad? Share your thoughts!