tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Moderator | Gary Hayes
Presenters
Gary Hayes | Director LAMP@AFTRS &
CEO MUVEDesign
Jeff Brookes | Regional Director - Asia Pacific,
Sulake Corporation
Mitch Olsen | Co-Founder, SmallWorlds

tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Gary Hayes | LAMP@AFTRS & CEO MUVEDesign
(lamp.edu.au & muvedesign.com)

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
BigPond Telstra US Fortune 100s Melbourne/Cog/AFTRS etc:
ABC Island Deakin Arts Island Thursday’s Fictions
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
1. Layered
Worlds
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
2. Browser Worlds
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
3. Client Worlds
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
4. Console Worlds
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Press hyperbole or myths?
Virtual Worlds are on the decline?
There’s no one in them?
& people don’t spend long there?
They are for kids or social ‘games’ not business?
There are no marketing models?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Virtual Worlds are on the decline?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Virtual Worlds are on the decline?
Investment in Virtual Worlds
•Oct 06 - Oct 07 - US $1 billion US
•Oct 07 to the present day - US $918 million
This breaks down roughly as:
•Q3 08 - $148.5 million invested in 12 VW companies
•Q2 08 - $161 million in 16 VW companies
•Q1 08 - $184 million in 23 VW companies
•Q4 07 - $425 million in 15 VW companies
Source: Virtual Worlds Management Reports
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There’s no one in them?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There’s no one in them?
Club Penguin 6m Habbo Hotel 12m
300 million globally in social virtual worlds
Habbo & WoW - 100 mill registered
Neopets 6m Stardoll 13m
Runescape - 7 mill active, 140k at once
Entropia - 700k reg, plan 15m concurrent!
Second Life - regularly at record breaking
concurrency of 70k
Webkinz 5.5m
Nicktropolis 5.5m
60% of Americanʼs play video games -
40% are women
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There’s no one in them?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There’s no one in them?
Government Communications Headquarters InGame Recruitment
Tom Clancy’s Splinter Cell: Double Agent
and high-octane racer Need for Speed
Carbon. By Massive
•Increased traffic to the Careers in
British Intelligence website by 1,000
percent, from an average 550 unique
visitors a day to an average 5,500
•Won the “Innovation” category at
the 2008 Recruitment Advertising
Awards, and received nominations
for several other industry awards
•Generated extensive coverage in
the national media
http://advertising.microsoft.com/europe/
ResearchLibrary/ResearchLibrary.aspx?A
dv_CaseStudyID=1664
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
& people don’t spend long there?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
& people don’t spend long there?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
They are for kids or social ‘games’ not business?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
They are for kids or social ‘games’ not business?
Virtual Worlds are partly about Lifestyle Marketing but…
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
They are for kids or social ‘games’ not business?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
They are for kids or social ‘games’ not business?
•“The centralized investment in the Second Life island paid for itself after 5-6 events -
recruitment at Accenture taking place in 49 countries, and each of these countries using
the Accenture Careers island rather than building its own, the cost savings really start to
stack up.
•So Global Recruitment Marketing put a lot of effort into making it easy for recruiters to
use Second Life. The team holds meetings, calls, and tours with recruiters and created a
guide on how to sign up in Second Life, create an avatar, walk, sit, chat, etc. “
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
They are for kids or social ‘games’ not business?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
They are for kids or social ‘games’ not business?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
Videogame advertising, both in and around game, is effective in driving
attention and recall
* Three-quarters of gamers notice ads while playing video games
* 75% of gamers engage with at least one ad per minute
* 81% of gamers engage at least every other minute
* ½ second ad exposure is sufficient for a gamer to notice an in-game ad
Most gamers believe that ads in games add to the realism and overall
experience of playing video games and can have a positive impact.
* \"It's fun to see things in games that are real.\"
* \"Like in Ghost Recon, you have the Dodge billboards in the urban
areas, and I think that is pretty effective... it adds realism because, you
know, you see ads in the real world\"
* \"I think being in a game is way better because in TV it can sometimes
annoy you and stuff and can have a negative effect on a product. But in a
game, I think it has a positive effect.\"
Source: Videogame Advertising Engagement Study, July 2007
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
1. Static Advertising
2. Promotions & Sponsored events
3. Virtual Goods & Product Placement
4. Dynamic InWorld Advertising
5. Branded Spaces
6. AdverWorlds & AdverGames
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
1. Static Advertising
NEW FORMS OF ADVERTISING - GAMES
Static Advertising
PriceWaterhouseCoopers estimates total spending on
in-game advertising to reach $1 billion by 2010.
•US $295 million will be spent on in-game advertising
•$207 million advergaming (the creation of games to
promote a brand)
•Advergaming will climb to $344 million in 2011, in-game
advertising will reach $625 million that year.\" eMarketer
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
2. Promotions & Sponsored events
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
Source: Betsy Book AAAS
3. Virtual Goods and Product Placement
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
Dynamic InWorld, InGame Advertising
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
5. Branded Spaces
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
5. Branded Spaces
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
6. AdverWorlds &
AdverGames
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
\"Now our audience can 'live' Laguna Beach:
immersing
The Real OC by
themselves in a next generation
hybrid of TV show and virtual
community\" says Matt Bostwick, SVP
Franchise Development MTV Music Group.
\"The virtual world will expand and grow with
the show in real time. This will enable the
audience to take our content as a starting
point and create their own drama.
In effect, the audience becomes the content. We created a first class 'virtual team' to implement this consisting
of Makena Technologies, Imaginary Forces, The Electric Sheep Company, Analog Protocol and Extra Large
Technology to make it happen in record time.\"
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
Football Superstars is the world's first Virtual
Football World. An entire online virtual
world designed by football fans exclusively for
football fans, where you can enjoy a massively
multiplayer experience on your PC.
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

Ad:tech tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
There are no marketing or ad models?
© Gary Hayes | lamp.edu.au www.muvedesign.com
gary.hayes@aftrs.edu.au or gary@muvedesign.com

tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
THANKS

tuesday march 10 3:45pm - 4:35pm
Virtual Worlds & Business: What's The ROI?
Jeff Brookes | Regional Director - Asia Pacific,
Sulake Corporation (habbo.com.au)

Sulake Corporation | Strictly confidential - legally protected and privileged information