Advertising & Branding Advertising & Branding Models in Social Virtual Models in Social Virtual

WorldsWorlds

Betsy BookBetsy BookAAAS - St. LouisAAAS - St. LouisFebruary 19, 2006February 19, 2006

Virtual Worlds ReviewVirtual Worlds ReviewA guide to social virtual worldsA guide to social virtual worlds

In-world advertising In-world advertising categories:categories:

►Product placement Product placement ►Sponsored promotionsSponsored promotions►““Adverworlds” Adverworlds” ►Co-branded spacesCo-branded spaces►Member generated brandsMember generated brands

Product PlacementProduct Placement

►Developer incorporates objects with Developer incorporates objects with third party brandingthird party branding

► Contextual presenceContextual presence

► Brand must be a good fit with the space Brand must be a good fit with the space & the audience& the audience

► Branded objects must have higher Branded objects must have higher perceived valueperceived value

Product Placement:Product Placement: McDonald’s & Intel in The Sims OnlineMcDonald’s & Intel in The Sims Online

Product Placement:Product Placement: Nike & Levi’s clothing in ThereNike & Levi’s clothing in There

Sponsored PromotionsSponsored Promotions

►Ties a specific event or activity to a Ties a specific event or activity to a product, company or brandproduct, company or brand

►Typically used for new product Typically used for new product launches & releases launches & releases

►Goal is to give the customer a positive Goal is to give the customer a positive experience with the brand through a experience with the brand through a rewarding interactive experiencerewarding interactive experience

Sponsored Promotions:Sponsored Promotions: Pop-Tarts & Pop-Tarts & Into the BlueInto the Blue in Habbo Hotel in Habbo Hotel

It’s not always about Pop-Tarts…..It’s not always about Pop-Tarts…..

ACS Relay for Life: www.cancer.org/slrfl

““Adverworlds”Adverworlds”► Entire virtual world exists to promote a single Entire virtual world exists to promote a single

brand or family of brandsbrand or family of brands

► Another medium for consumer promotions that Another medium for consumer promotions that drive sales to specific areasdrive sales to specific areas

► Goal is to create a personal connection with Goal is to create a personal connection with customers via sponsored communitycustomers via sponsored community

► Users encouraged to associate personal Users encouraged to associate personal identity with brand identityidentity with brand identity

► Serious investment of time & moneySerious investment of time & money

Adverworlds: Coke StudiosAdverworlds: Coke Studios

Adverworlds: Virtual Magic Adverworlds: Virtual Magic KingdomKingdom

Co-Branded SpacesCo-Branded Spaces

►Common iterations include:Common iterations include: Developer sells ad space within popular Developer sells ad space within popular

areas to more than one advertiser areas to more than one advertiser Adverworld incorporates partner Adverworld incorporates partner

promotionpromotion

►Maximizes ad inventoryMaximizes ad inventory

►Extends offline partnerships onlineExtends offline partnerships online

Co-Branded Spaces:Co-Branded Spaces: Wal-Mart Room in Coke StudiosWal-Mart Room in Coke Studios

““X-treme co-branding” in X-treme co-branding” in DubitDubit

How do How do usersusers react to all this?react to all this?

Everything from “fighting sign with Everything from “fighting sign with sign”...sign”...

……to active incorporation of favorite to active incorporation of favorite brandsbrands

Some create their Some create their ownown brands brands

KittenKat’s “OY!” Brand in ThereKittenKat’s “OY!” Brand in There

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www.fergusonv.com/there

Top 5 Categories of Top 5 Categories of Member Generated Brands Member Generated Brands

►Avatar customizationAvatar customization►Custom in-world Custom in-world

vehiclesvehicles►Real estate servicesReal estate services►Home decoratingHome decorating►Event planning servicesEvent planning services

Top-Level Insights into Top-Level Insights into Member Generated Brands Member Generated Brands

► A direct response to market demand within A direct response to market demand within virtual economiesvirtual economies

► Thrive in worlds that openly encourage user Thrive in worlds that openly encourage user created content created content

►Give amateur designers and entrepreneurs Give amateur designers and entrepreneurs valuable experience & skillsvaluable experience & skills

► Savviest virtual business owners are actually Savviest virtual business owners are actually making real $$making real $$

Presentation & related material

available online at:

www.virtualworldsreview.com