Second Life

The interesting thing about marketing in new media is that it continually evolves. Consider the fact that I wrote previously about the virtues of Second Life. Second Life for those who don’t know about it is the property of Linden Labs. A glimpse into a 3D virtual world, Second Life was widely recognized for the real-world wealth it created. Many companies and individuals alike nestled up close to their computer to create Avatars (virtual representations of themselves) and develop “real property” in the virtual world. Most of this was a marketing ploy to gain notoriety and eyeballs.

Months after the land rush measuring the value of this activity paints the picture of the value of this non-traditional media type - consider this excerpt from TechCrunch:

Wagner James Au at GigaOm has a set of figures worth looking at. In defending Second Life, Au notes that the visitor rate to corporate installations on Second Life is 0.8-2% vs a CTR rate on standard web advertisements on 0.5-1%. Great, but does a higher CTR really matter? The 5 most popular corporate destinations on Second Life have between 1200 to 10,000 visitors per week. An island on Second Life (a popular choice for corporations) costs $1,675 upfront then $295/ month, and that doesn’t include the cost to actually create structures on the island from one of the various Second Life design firms (cost: approx $5-10,000). So lets do the figures: the most popular corporate destination has 10,000 visitors per week; at $295/ mth in maintenance fees that’s a CPM rate of approx $7.40. The bottom destination of the top 5 has a CPM rate of approx $61. If we apportion the upfront costs of design (say $5,000 although it’s probably higher) and setup ($1675) over 12 months the CPM rates become $21.20 (top) and approx $180 (bottom of the top 5). The CTR rate is irrelevant: the CPM cost for businesses on Second Life is insane: simply even for the very best, the figures don’t add up.

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Published: July 15, 2007
By: George Seybold

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Second Life

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Second Life : Does Second Life Hold “Real” Marketing Value? I say, “Yes!”

The Setup
I walked into a McDonald’s the other day and ordered a 2 Cheeseburger meal. The kid behind the counter said that they were no longer offered. I said, “well how about two cheeseburgers a medium fry and a coke?” He said “OK”, and I paid my money.

You laughed, but you get the idea - my experience with the McDonald’s brand was defined in those minutes and the many other minutes spent prior to this event.

An organization does not own a brand any more than they own the color in their logo. The brand equity is the value that a customer extends to the brand based on their experience with the organization.

An Intimate Interaction with your Brand
Automakers have led the charge with the introduction of their products in the Second Life space. “Here,” they say. “Take this Toyota Scion for a Lenning ($1) and try it on and drive it around a while.”

This fashion accessory becomes a part of your Second Life identity which creates a brand experience. If it suits you in Second Life then it extends itself directly to a purchase in Real Life.

The deal is that if I were to restart my First Life I would be a become a Scientist or Engineer and in this space I can be anything or anyone I want more inexpensively than in real life. If I want an island I can buy one and if I want a big house I can build one.

As a marketer the best part about Second Life is you CAN setup shop right beside Best Buy and sell computer parts with the big boys. The space is limitless. The barrier to entry is low and the virtual world is growing faster and richer than the real world.

Second Life 1: Does Second Life Hold “Real” Marketing Value?

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Published: January 31, 2007
By: George Seybold

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Second Life

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