MARKETING  BEYOND  ONLINE… VIRTUAL WORLD OPPORTUNITIES! Prepared for the  Fashion Group International–Houston Kay E. Stron...
VIRTUAL WORLDS (VW) <ul><li>“ ..virtual worlds aren't the ugly sister of social networks, but  really Cinderella  in disgu...
WHO & WHY <ul><li>“… interactive leaders like  Coke, Motorola, Wells Fargo & Co, Disney, and Hollywood film studios  are e...
 
 
VIRTUAL ECONOMY <ul><li>An analyst referenced in the Wall Street Journal predicts that &quot;non-subscription revenue&quot...
 
<ul><li>Linden Lab, the creators of VW    Second Life  report Sep09: </li></ul><ul><li>The in-world economy grew 94 percen...
DIGITAL CONSUMERS SPEND OVER  $1.5 BILLION  ON  VIRTUAL ITEMS EACH YEAR … <ul><li>… these virtual objects are nothing more...
VW PRODUCTS <ul><li>(1)  Virtual products  created purely for  in-world     consumption  </li></ul><ul><li>(2)  Real world...
IN-WORLD PRODUCTS <ul><li>Virtual Services  include camping, wage labor, business management, entertainment and custom con...
VIRTUAL GIFTS <ul><li>&quot;And now Facebook, MySpace, and Bebo are all getting into  virtual gifts  - a pretty strong vot...
WHY? <ul><li>“ My theory is that people buy digital goods for the same reason that they buy goods in the real world;    (i...
DOING MORE <ul><li>The simplest way to use digital goods is to  buy greater functionality . Just as I might buy special ti...
BUILDING RELATIONSHIPS <ul><li>… the price of the bouquet (I give) is as important as how pretty are the flowers. It is a ...
ESTABLISHING IDENTITY <ul><li>Users can go to great lengths to  customize their appearance to suit their preferences . Thi...
CONSUMER PROFILE <ul><li>Survey – 46% Virtual World Fans Buy Most </li></ul>
LARGEST DEMOGRAPHIC OF CONSUMERS WHO HAVE REPORTED BUYING VIRTUAL GOODS: <ul><ul><li>17% of  Females  ages 25 to 34 </li><...
  ETHNIC BREAKDOWN OF VIRTUAL GOODS PURCHASERS: <ul><ul><li>16% of Asian Americans </li></ul></ul><ul><ul><li>14% of Latin...
VIRTUAL WORLD  MARKETING SPECIALISTS <ul><li>http:// viximo.com / </li></ul><ul><li>http:// www.roiworld.com / </li></ul><...
 
 
 
Source:   http://images.businessweek.com/ss/06/04/avatar/index_01.htm
 
VIRTUAL WORLDS … <ul><ul><ul><ul><ul><li>  </li></ul></ul></ul></ul></ul>Marketing beyond online !
SHOPPING EXPERIENCE  SECOND LIFE <ul><li>http:// secondlife.com /shop/ </li></ul>
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Marketing beyond Online: Virtual World Opportunities

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Prepared for the Fashion Group International-Houston 30 Sep 09 by kestrong@uh.edu

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Marketing beyond Online: Virtual World Opportunities

  1. 1. MARKETING BEYOND ONLINE… VIRTUAL WORLD OPPORTUNITIES! Prepared for the Fashion Group International–Houston Kay E. Strong, Ph.D. [email_address] University of Houston / futures program 30 Sep 09
  2. 2. VIRTUAL WORLDS (VW) <ul><li>“ ..virtual worlds aren't the ugly sister of social networks, but really Cinderella in disguise” -- Michael J. Griffin, Creative Director, Leap In Entertainment </li></ul><ul><li>“ virtual worlds present a new type of marketing opportunity ” -- KZERO: Resident experts in virtual worlds </li></ul>
  3. 3. WHO & WHY <ul><li>“… interactive leaders like Coke, Motorola, Wells Fargo & Co, Disney, and Hollywood film studios are experimenting with the next dimension of online-- virtual worlds.” </li></ul><ul><li>“ Their missions vary-- to seek new life for wavering brands, to expand civilizations (audiences) or even make &quot;first contact.&quot; http://www.imediaconnection.com/content/8605.asp </li></ul>
  4. 6. VIRTUAL ECONOMY <ul><li>An analyst referenced in the Wall Street Journal predicts that &quot;non-subscription revenue&quot; from the volume of real-money trade of virtual items (RMT) market will reach $5 billion by the same year 2011 </li></ul><ul><li>Source : http://virtualeconomy.org/comment/reply/100/9314 </li></ul>
  5. 8. <ul><li>Linden Lab, the creators of VW Second Life report Sep09: </li></ul><ul><li>The in-world economy grew 94 percent year-over-year from Q2 2008 to Q2 2009. </li></ul><ul><li>At nearly USD$50 million each month in user-to-user transactions, the Second Life economy is on an annual run rate of more than a half billion US dollars. </li></ul><ul><li>Source: http://www.virtualworldsnews.com/2009/09/linden-lab-release-second-life-stats-onslaught.html#more </li></ul>
  6. 9. DIGITAL CONSUMERS SPEND OVER $1.5 BILLION ON VIRTUAL ITEMS EACH YEAR … <ul><li>… these virtual objects are nothing more than a series of pixels! </li></ul>
  7. 10. VW PRODUCTS <ul><li>(1) Virtual products created purely for in-world consumption </li></ul><ul><li>(2) Real world products marketed in-world for virtual consumption but sold for platform currency </li></ul><ul><li>(3) Virtual in-world items traded out-of-world using real world cash, then brought back in- world. </li></ul>
  8. 11. IN-WORLD PRODUCTS <ul><li>Virtual Services include camping, wage labor, business management, entertainment and custom content creation. </li></ul><ul><li>Virtual Goods include buildings, vehicles, devices of all kinds, animations, clothing, skin, hair, jewelry, flora and fauna, and works of art. </li></ul>
  9. 12. VIRTUAL GIFTS <ul><li>&quot;And now Facebook, MySpace, and Bebo are all getting into virtual gifts - a pretty strong vote of confidence that the market is out there in North America, and not just with teens.” -- Michael J. Griffin, Creative Director, Leap In Entertainment. </li></ul>
  10. 13. WHY? <ul><li>“ My theory is that people buy digital goods for the same reason that they buy goods in the real world; (i) to be able to do more, (ii) to build relationships, and (iii) to establish identity.” </li></ul><ul><li>Source : Viral Blog: http://www.viralblog.com/research/why-digital-consumers-buy-virtual-goods/ </li></ul>
  11. 14. DOING MORE <ul><li>The simplest way to use digital goods is to buy greater functionality . Just as I might buy special tires for my car so that I can corner better, so I might buy special virtual tires for my virtual car so that it too can corner better. </li></ul>
  12. 15. BUILDING RELATIONSHIPS <ul><li>… the price of the bouquet (I give) is as important as how pretty are the flowers. It is a measure of the depth of my feeling. </li></ul><ul><li>Virtual gifts work the same way. The gift giver, the recipient, and all the visitors to his/her profile page know that virtual gifts cost real money . That fact alone distinguishes the birthday wishes of the gift giver from the rest. Again, it isn’t just the thought that counts. </li></ul>
  13. 16. ESTABLISHING IDENTITY <ul><li>Users can go to great lengths to customize their appearance to suit their preferences . This self expression shows other users what they think is cool, and hence highlights the users’ tastes. </li></ul><ul><li>NOTE : IMVU (source) has the world’s largest catalog of virtual goods with over 3 million items, produced by over 100,000 content creators. It currently generates approximately $1 million in revenue per month, 90% of which comes directly from in-game consumers. </li></ul>
  14. 17. CONSUMER PROFILE <ul><li>Survey – 46% Virtual World Fans Buy Most </li></ul>
  15. 18. LARGEST DEMOGRAPHIC OF CONSUMERS WHO HAVE REPORTED BUYING VIRTUAL GOODS: <ul><ul><li>17% of Females ages 25 to 34 </li></ul></ul><ul><ul><li>15% of Males 12 to 17 & 18 to 24 </li></ul></ul><ul><ul><li>15% of Females 12 to 17 </li></ul></ul><ul><ul><li>15% of Females ages 35 to 44 </li></ul></ul><ul><ul><li>Source : Virtual Currency Report 31 July 09 </li></ul></ul>
  16. 19. ETHNIC BREAKDOWN OF VIRTUAL GOODS PURCHASERS: <ul><ul><li>16% of Asian Americans </li></ul></ul><ul><ul><li>14% of Latinos </li></ul></ul><ul><ul><li>12% of Caucasians </li></ul></ul><ul><ul><li>10% of African Americans </li></ul></ul><ul><ul><li>Source : Virtual Currency Report 31 July 09 </li></ul></ul>
  17. 20. VIRTUAL WORLD MARKETING SPECIALISTS <ul><li>http:// viximo.com / </li></ul><ul><li>http:// www.roiworld.com / </li></ul><ul><li>http://riversrunred.com/immersive-brandspaces/about / </li></ul><ul><li>http:// kzero.co.uk </li></ul>
  18. 24. Source: http://images.businessweek.com/ss/06/04/avatar/index_01.htm
  19. 26. VIRTUAL WORLDS … <ul><ul><ul><ul><ul><li> </li></ul></ul></ul></ul></ul>Marketing beyond online !
  20. 27. SHOPPING EXPERIENCE SECOND LIFE <ul><li>http:// secondlife.com /shop/ </li></ul>

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