The Avatar Age Entertainment and Advertising in the Future October 11, 2007

What is Millions of Us? The world’s leading agency helping brands connect with large online communities, virtual worlds and social networks

The world’s leading agency helping brands connect with large online communities, virtual worlds and social networks

Millions of Us: Key Clients Toyota General Motors Mini Sun Microsystems Coca Cola Intel Microsoft Comcast CNN Warner Brothers HBO 20 th Century Fox Diageo Budweiser

Toyota

General Motors

Mini

Sun Microsystems

Coca Cola

Intel

Microsoft

Comcast

CNN

Warner Brothers

HBO

20 th Century Fox

Diageo

Budweiser

What is an Avatar? Now, an online persona In Hindu lore, the earthly form of a God

The Disappointing Internet

What I expected: 1997

What I Got Where are the people?

Virtual Worlds From Habitat to Second Life 1985 2005

10,000 Foot View of Second Life 9,688,000 residents have built the entire world * Growing 20% monthly 55% Male/ 45% Female 35% US/ 65% Overseas Avg. Age = 32 Usage Patterns Avg = 14 hours per month $US 550 million per year in user-to-user transactions* Most popular activities are social (Games, parties, concerts, etc.) Last updated 2007-9-25 20+ Million Hours/Month of Use Escape, Entertainment, Education, Work

9,688,000 residents have built the entire world *

Growing 20% monthly

55% Male/ 45% Female

35% US/ 65% Overseas

Avg. Age = 32

Usage Patterns Avg = 14 hours per month

$US 550 million per year in user-to-user transactions*

Most popular activities are social (Games, parties, concerts, etc.)

Last updated 2007-9-25

How Big Can This Get? Second Life Growth Projections

Who spends $550 Million on Stuff that Doesn’t Exist? Digital music is “virtual” Software is “virtual” When you spend 30 hours a month somewhere, you better look cool

Digital music is “virtual”

Software is “virtual”

When you spend 30 hours a month somewhere, you better look cool

Houston: We Have a Problem Authenticity and Advertising Only 24% of U.S. residents trust what companies tell them

Only 24% of U.S. residents trust what companies tell them

A Statistic to Ponder User- generated, social communities represent the fastest growing market segment totaling 31% of all consumer Internet usage (Comscore, 2007)

User- generated, social communities represent the fastest growing market segment totaling 31% of all consumer Internet usage

(Comscore, 2007)

The Programming Grid of the Avatar Age Virtual Worlds Blogs User Created Content Communities Social Networks Younger Older Audience Age

Other Worlds 100 Million and Growing. . . . Habbo Hotel: 32 million users Gaia Online: 8.5 million users Zwinktopia: 10 million users Stardoll: 8.5 million users

Some Predictions for 2008 Social networks will become “Avatarized” Virtual worlds will become more like social networks Television tie-ins will increase for virtual worlds

Social networks will become “Avatarized”

Virtual worlds will become more like social networks

Television tie-ins will increase for virtual worlds

Where it all Began Philo T. Farnsworth: 1928

Fast Forward: 2007 Across the Street: 1100 Sansome

And So It Began. . . . . The gentle blue glow

Meanwhile . . . . . 550 million automobiles by 2002

What Happened to Communities?

First Steps Brand Translation

Case Study: Pontiac Motorati 96 acres of land of largely user created “car culture” From Jay Z to Monster Trucks Extremely passionate and active community #2 trafficked corporate region in Second Life

96 acres of land of largely user created “car culture”

From Jay Z to Monster Trucks

Extremely passionate and active community

#2 trafficked corporate region in Second Life

Case Study: Microsoft “Coder’s Cove” Launched Island and complex social game for Visual Studio on 5/11/2007 Average participant engagement >23 hours. Winners engaged >72 hours Definitive case study for active user engagement and targeted community development

Launched Island and complex social game for Visual Studio on 5/11/2007

Average participant engagement >23 hours. Winners engaged >72 hours

Definitive case study for active user engagement and targeted community development

Campaign Summary WWE SummerSlam in Gaia September 2007

Forum Reporting WWE SummerSlam in Gaia Totals for 7 Days (8/20 - 8/26) Unique Users Posting in WWE Forum: 12,401 WWE Forum Threads: 2,879 WWE Forum Posts: 26,275 WWE Forum Page Views: 847,016 Unique Visitors to WWE Forum: 198,608 Cena Hats Granted: 92,630 Triple H Sledgehammers Granted: 55,824 Orton Chairs Granted: 42,677

Virtual Worlds Meet Television Gossip Girl by Warner Brothers

Telling Stories in Virtual Worlds What is Scion City?

Thank You