Second Life Steve Mulder Business Boom, Bust, or Both?

Unique residents Number of registered users (excludes alternate accounts but includes individuals that have not logged in)

Number of registered users (excludes alternate accounts but includes individuals that have not logged in)

Premium residents Number of paying accounts 1.4% of total registered users

Number of paying accounts

Other population stats Avatars logged in during last 60 days: 1.5 million Avatars logged in during last 30 days: 1 million Avatars logged in during last 14 days: 630,000 Avatars logged in during last 60 days: 450,000 Avatars typically online concurrently: 40,000

Avatars logged in during last 60 days: 1.5 million

Avatars logged in during last 30 days: 1 million

Avatars logged in during last 14 days: 630,000

Avatars logged in during last 60 days: 450,000

Avatars typically online concurrently: 40,000

Top countries Country of origin for active avatars (logged in for over an hour during Sept 2007)

Country of origin for active avatars (logged in for over an hour during Sept 2007)

Age and gender Users with active avatars (logged in for over an hour during Sept 2007)

Users with active avatars (logged in for over an hour during Sept 2007)

Money supply Total balance of Linden dollars owned by residents US $13+ million

Total balance of Linden dollars owned by residents

Amount of virtual land Mainland + islands in km 2

Mainland + islands in km 2

In-world entertainment activities

What’s Happening? What’s Working?

Gartner’s hype curve

Major brands in SL by category

PR and Brochureware

Umm… Why???

Umm… Why???

Umm… Why???

Where are all the people?

If you build it, they will come … just isn’t true in Second Life

Events

Brand Immersion

Real-World Ecommerce

Customer Service

Recruiting

Education and Training

Training simulators

Collaboration

Real-World Product Development and Prototyping

Perfect Controlled Useless Second Life as walled garden

Second Life as garden center Portable Sharable Useful!

In-World Products and Services

Distributed marketing

“ The most successful business people in Second Life have taken a look at the commercial landscape and determined where needs exist. If you are not authentic and do not offer anything to the community, you are likely to be ignored.” Catherine Smith Director of Marketing Linden Labs

ROI of Second Life?

The new market is DIALOGUE , the new currency is INTERACTION , and the exchange rate is variable, based on ENGAGEMENT Grace McDunnough

Engagement = Attention + Interaction

Attitude toward real-life brands in SL 49% are generally positive

49% are generally positive

Interactions Longer visits Object interactions Repeat visits Referrals Free takeaways Purchases

Non-profit organization for reliable info on virtual worlds: Size and engagement of user base Vibrancy of economy Key aspects of technology mmi.wikidot.com

Non-profit organization for reliable info on virtual worlds:

Size and engagement of user base

Vibrancy of economy

Key aspects of technology

mmi.wikidot.com

Next Steps

Immerse yourself

Establish goals and metrics before going in-world

Be useful

Treat it like the new Web, not like a game

Commit to the journey

Other Virtual Worlds

Virtual worlds’ growth forecasts www.kzero.co.uk/blog/?page_id=1312

www.kzero.co.uk/blog/?page_id=1312

80% of active Internet users will have a "Second Life" in the virtual world by the end of 2011 Gartner

80% of active Internet users will have a "Second Life" in the virtual world by the end of 2011

Gartner

Thank You Steve Mulder smulder@ molecular.com