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| Virtual Worlds: The Next Realm in Advertising?
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By: Bill Nissim, September 2006 ©
What does Major League Baseball, Coca Cola, Well Forgo Bank, the W Hotel, and
the American Cancer Society all have in common? They all use a virtual realm to
reach out to potential customers and supporters in novel ways. Today, traditional
media captures less attention from the younger generation - including the young at
heart! New venues that address this demographic are evolving.
One such approach to connect to this allusive audience is video game advertising.
Consider Massive Corporation, which is now part of Microsoft. The premise of this
organization is to reach “Lost Boys” (ages 18 to 34) that pay less attention to
mainstream media. The advertising “spend” for this market segment is estimated at
$12 billion for television and another $10 million on static product placements in
video games. The challenge for advertisers is a declining use of television due to
other distractions (Internet, music, messaging) or simply “skipping” ads via TiVo or
other recording devices. Another age-old problem for advertisers is the inability to
directly measure results or return on investment (ROI).
Massive Corporation’s value proposition was to “insert” a series of ads into select
Internet-based video games, visible during play. Massive worked with video game
publishers to install code into their programs allowing for dynamic advertisements to
flow into place cards within the gaming environment. Concurrently, impression data
flowed back to Massive to be packaged as data for the advertiser. This data allowed
the advertiser to adjust content on an ongoing basis for greater effectiveness. For the
first time, advertisers had real-time data about their ads which where directly
targeted to the audience they sought. Since most Internet gaming environments
require payment and personal information demographic detail increased.
Another untapped arena for advertisers is Virtual Worlds. Places like Second Life
and Entropia Universe provide opportunities to interact and communicate with users
in ways not achievable through traditional mediums. In these settings, individuals
create a 3D “avatar” (human or fantasy characters) and through walking, flying, or
teleporting can explore unimaginable worlds. These virtual spaces take shape in
numerous forms and may resemble a city street in Amsterdam, a walk through the
Louver Museum in Paris, or standing on the bow of the Titanic - strike a pose as
Rose or Jack! As part of your “Second Life,” you may acquire land, build a house,
and shop at yard sales to buy clothes or home furnishings. Real dollars are exchanged
in these worlds and the lines between fantasy and reality become blurred. In addition,
you may form relationships with neighbors and groups that share similar interests or
causes. Innovative organizations may create venues that interest this younger
generation and weave their brand into the activity or environment.
Consider how Coca Cola approaches this demographic. Coke Studios is a place
where teens can mix music in a virtual studio and win “decibel” points by playing
their mixes to other members. With these points, they can buy things such as
furnishings for their studio. Points are also earned by participating in games and other
activities. Whether you’re on a roller coaster or answering game quizzes, the ever
present red and white wave (Coke’s logo) adorns the objects, wallpaper, or
surroundings and serves as an active brand builder. This subtle approach creates
more than awareness like advertisements do, but allows the individual to interact
with the brand.
What about educational branding? If you are a financial institution, you can achieve
this objective through a venue that informs and creates brand awareness to a new
generation. Well’s Fargo built Stagecoach Island in Second Life and touts it as the
first virtual reality (online) financial literacy game. In an official press release, Well’s
Fargo cites “over half of U.S. High School students graduate without knowing the
basics of banking…and 70% of college students play video games.” This blending of
entertainment and learning achieves more than traditional mediums would ever hope
to.
This free Internet-based game allows students to create a character on Stagecoach
Island and the ability to interact with other island members. Although most activities
are free, such as sky diving and paintball, other experiences require money and can
be earned by attending a Virtual Learning Lounge and answering basic banking
questions. The topics covered in these sessions include budgeting, saving, managing
money and were derived from a Well’s Fargo signature program called “Hands on
Banking”®. By creating a hip and fun setting, Well’s Fargo engages this younger
generation by interacting with their services (Well’s Fargo ATM machine) while
associating their brand with banking services.
What if you are launching a new brand to this target market? That’s exactly what
Aloft (A W Hotel brand) did in September 2006. According to Alison Brod, Public
Relations, Aloft will be the first hotel brand to open its doors for operation in a
virtual setting. Visitors will be able to visit guest rooms, lounges, and surrounding
environments well before the first real-world hotel opens its doors in 2008.
The Aloft brand suggests an “escape” from the ordinary and provides a highly unique
experience. Visitors will be able to provide feedback on amenities such as food
service and décor. The purpose behind developing this site was to educate consumers
on this brand by allowing visitors to experience the loft-style rooms and trendy
environment. In essence, Aloft is building a potential customer base via
familiarization and use of their services.
Imagine if you are non-profit organization with limited resources? The American
Cancer Society recently held a “walk” through a virtual route to raise needed funds.
In a recent OnPhilanthropy.com article, the American Cancer society raised $38,000
during their “Relay For Life.” This walk involved thousands of participants whom
walked in a virtual setting. “We are thrilled with the success of this year’s Second
Life Relay for Life program,” said Michael Mitchell, Vice President and Executive
Director of the American Cancer Society’s Futuring & Innovation Center. “Now,
more than ever, we know that a virtual community can be engaged just as effectively
as a real community to help fight cancer.”
The beauty of using this environment is undoubtedly the wide reach at minimal
financial burden. Since these activities exist in virtual worlds, the cost to sponsor an
event or cover incidentals (like t-shirts and cleaning fees) are manageable. By virtue
of their success, this should be an attractive venue for other causes and charities.
What about Fortune 500 organizations? Could another advertising channel exist in
these virtual worlds? Consider the possibilities.
Your company produces a new mobile device that enables the user to do far more
than is currently available. Traditional media channels targeted to the younger market
are highly congested and commoditized. Due to the technical nature of your offering,
you will need consumers to spend time learning these features in a fun and interesting
manner. As a result, you build a technology center in a virtual world to showcase
capabilities in a game format. For example, to educate users on a GPS feature, you
build an Amazon jungle and have them navigate their way while avoiding quick-sand
and predators. By completing the game, they have “learned” how to apply these
features and become more encouraged to try other offerings.
What is the real value of advertising in this new virtual world? First, consumers have
the ability to experience things not currently possible in the real world. Product trials
in virtual settings provide a low-risk environment for testing features and benefits.
You can hire avatars to be product ambassadors and answer common questions.
Also, you can demonstrate your 3D product or service in use. Live video and jpegs
can add to the experience to help educate the user. In some cases, live feeds such as
the Atlantis Shuttle launch can be viewed in some virtual settings.
Could virtual environments be a just another channel for advertising or a viable
community for consumerism? When blogging came on the scene, people dismissed it
as a fad and characterized it was a soapbox for loonies! Today, organizations of all
sizes closely monitor these sites and take what’s being said very seriously. Could
virtual worlds be the next medium for advertising?
Bill Nissim consults with organizations on strategic branding imperatives. His
website www.ibranz.com contains reference materials, links, and helpful articles on
the many facets of branding. In addition, Nissim released his first book “The Brand
Advocate” to provide a tool-kit for the marketing practitioner. |
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