VIRTUAL WORLDS Virtual Game Worlds Virtual Social Worlds
VIRTUAL WORLDS An extension of life More personal online community Key Characteristics Real time conversations Avatars 3D
MARKETING USES Advertising and Communication Virtual Product Sales (v-Commerce) Market Research
EXAMPLE - BADAmerican Apparel First existing company to enter Second Life “Build it and they will come” attitude Expected to increase overall profit through virtual sales Closed after 1 year
EXAMPLE - GOODCircuit City Online store allows users to virtually experience products before purchase Greater interactivity increases likelihood of purchase Business unit dedicated to virtual world projects Blog provides customer support for virtual store users
CONCLUSIONTo succeed in the virtual world a company needs to Invest money and time Not focus on maximizing revenue Use virtual world as a marketing tool Interact with avatars Have a purpose for the virtual store
DISCUSSION Calculating ROI is much more difficult in the virtual world since product sales online don’t necessarily translate into real world sales. How can a company measure the effectiveness of their virtual world initiatives?