Adding Value
Virtual Worlds Generate Real-life Benefits For Properties, Sponsors
Marketers that want to reach tech-savvy consumers should consider the costs and benefits of establishing a presence in popular virtual communities.
6/11/07: The growing popularity of Second Life and other virtual communities is creating new opportunities for properties to enhance their offerings to corporate partners, as well as providing an additional venue for sponsor activation.
Second Life currently has seven million “residents” or registered users, with about 1.8 million who have logged on in the past two months. Research firm Screen Digest expects Second Life and other massively multiplayer online games, or MMOGs, to have 10 million subscription accounts and generate $1.5 billion in 2011 in North America and Europe, up from $1 billion last year.
These online worlds–which allow users to create an alter ego avatar that can interact with other participants, attend events, shop for products and services, and convert virtual goods into hard currency–offer numerous opportunities for properties and sponsors.
Specifically, the sites can help accomplish the following objectives:
• Extend reach beyond physical events and venues
• Enhance the value of sponsorship packages by providing additional exposure and access to young, technology-friendly consumers
• Access new revenue streams through online sales, donations, etc.
In addition to Linden Research, Inc.’s Second Life, other virtual communities include MindArk PE AB’s Entropia Universe and There, Inc.’s eponymous site.
Case Study: The NBA In Second Life
Last month, the NBA rolled out an NBA Headquarters in Second Life that includes a merchandise store as well as venues and activities sponsored by three existing partners: Cisco Systems, Inc.; T-Mobile USA, Inc.; and Toyota Motor Sales U.S.A., Inc.
“We see exponential growth in the medium, and it’s a great platform that allows us to meet our fans in a unique way and enhance our partners’ visibility,” said Melissa Rosenthal-Brenner, the league’s senior director of marketing.
The site is designed to engage fans through interactive activities while simultaneously providing exposure for NBA partners. For example, users can visit the T-Mobile Arena to watch real-time 3D diagrams of NBA games, participate in half-court shooting contests that offer prizes from the Second Life NBA store, and visit video lounges to watch past playoff games and other highlights.
The site also supports real-world activation programs by NBA partners. For example, fans can visit the Toyota Larry O’Brien Trophy Room in the T-Mobile Arena to have their avatar photographed with the league’s championship trophy, a promotion that supports Toyota’s sponsorship of the national trophy tour.
“We’re always looking for ways to push the technology envelope and speak with an audience that is under 35 years of age, and this is a great way to do that,” said Steve Jett, Toyota’s national truck advertising and engagement marketing manager.
For its part, Cisco titles a press center in the T-Mobile Arena and created kiosks for the NBA area that users can click on to transport them to interactive basketball games located at Cisco’s Second Life area.
“This is an innovative space that allows us to speak directly to tech-savvy 18-to-34-year-olds,” said Diane Dudeck, Cisco’s senior director of worldwide media, entertainment and sponsorship marketing. “Programs like this could have huge value for other properties. It’s a great component that adds legs to a program and something we look for when we evaluate opportunities.”
Causes Use Second Life As Fundraising Tool
Nonprofits are using Second Life to host virtual fundraisers.
For example, the American Cancer Society has thus far raised $75,000 in pledges around next month’s SL Relay for Life virtual walk-a-thon. Participants’ avatars received pledges from other Second Life residents and will walk around a track during the two-day event modeled on the cause’s actual Relay for Life program.
Nonprofits also are using Second Life fundraisers to grow their audience and attract sponsors. Case in point: The National Multiple Sclerosis Society’s Southern California chapter created MS Fly, a pledge-driven scavenger hunt taking place this week in Second Life.
The event is sponsored by Toyota’s Scion division and MovieTickets.com, Inc., both of which have their Second Life areas touted along the scavenger hunt route.
“Second Life provides us a tool to connect with younger generations and reach people that might not be able to participate in an MS Walk because of geographic or physical restrictions,” said Jim Elfline, the chapter’s vice president of special events. The event’s name refers to the fact that Second Life residents can fly as well as walk.
What It Takes To Get A Second Life
Costs associated with establishing a virtual location in Second Life begin at $9.95 per month, which grants 512 “square meters” of land.
Additional real estate is priced on a tiered system, with an island–the largest land tract–costing $295 per month in addition to a $3,000 to $4,000 up-front fee. The NBA purchased an island for its NBA Headquarters.
Nonprofits do not have to buy land to conduct a fundraiser in Second Life.
Nearly all corporations and organizations wanting to establish a presence in Second Life hire a firm with MMOG experience and technological know-how.
Although fees charged by such firms are significant–ranging from $10,000 to $1 million depending on a client’s needs–the payoff can be big, even for companies that don’t need technology assistance, said Christian Renaud, Cisco’s chief architect, networked virtual environments.
“One of the things they add, especially for newcomers, is an understanding of the culture and how to communicate to others in Second Life.”
The MS chapter worked with marketing and design firm The Illusion Factory to create MS Fly. The agency helped point the nonprofit to Scion and MovieTickets.com as potential sponsors because it was familiar with those company’s Second Life efforts, Elfline said.
Woodland Hills, Calif.-based Illusion Factory provided a “sizeable” in-kind donation of time and resources to help create MS Fly, he added.
Sources
Cisco Systems, Inc., Tel: 408/526-4000
Toyota Motor Sales U.S.A., Inc., Tel: 310/468-4000
National Multiple Sclerosis Society, Southern California chapter, Tel: 310/479-4456
NBA, Tel: 212/407-8000