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July 31, 2008 3:53 PM PDT

Want to screw up a virtual world experiment? Here's how

by Charles Cooper

An island all to yourselves sounds dreamy if you're planning a vacation with your spouse. But not so in the virtual world, where that sort of solitude is potential poison for companies setting up shop.

I've flown my avatar into more than one Second Life property where it was basically just me and my lonesome. This was an embarrassing marketing mistake by folks who should have known better. Unfortunately, it's not an isolated incident.

(Credit: Parks Associates)

"Companies make a mistake when they assume that people will come when it's built. But then you go to a property and find out that it's empty," says Barry Gilbert, who directs research for Strategy Analytics, specializing in virtual online environments.

Amen to that. The behavior and expectations we've grown up with on the Web does not uniformly apply to virtual worlds. If you think this is a case of build it and they will come, think again. "They" wont. Virtual worlds are supposed to be interactive media where things change in real time. Instead, we're winding up too often with "Dullsville."

More than a year ago, Frank Rose wrote a devastating piece in Wired on Madison Avenue's wasted stampede to set up shop in Second Life, the most popular of the non-gaming virtual worlds. His conclusion: the effort was only "slurping up corporate dollars and delivering little in return." Ouch.

Hard to say how much things have changed. This is the proverbial work in progress and there is an obvious incentive for companies not to screw it up: A session (in a virtual environment) lasts between 45 to 50 minutes versus, on average, a few minutes on a Web site. But marketers are going to have to try awfully hard to blow this opportunity given the popularity of virtual worlds. Consider the following statistics on global unique sessions for non-gaming virtual worlds compiled by Strategy Analytics:

•  2006: 46 million

•  2007: 90 million

•  2008 (projected) 137 million

Looking over the horizon, Strategy Analytics projects the numbers will reach close to 1 billion within 10 years. I know. Take market research projections with a big grain of salt. But we're talking about a pretty big upside when you consider that only 7 percent of Internet gamers visit virtual worlds each week, according to Parks Associates.

Of course, it's hard to sustain their attention (let alone participation) when companies insist upon turning virtual world sites into cyberversions of St. Helena.

Charles Cooper has covered technology and business for more than 25 years. Before joining CNET News, he worked at the Associated Press, Computer & Software News, Computer Shopper, PC Week, and ZDNet. E-mail Charlie.
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by exitstageleft July 31, 2008 6:52 PM PDT
uh, what?
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by sanenazok August 1, 2008 6:18 AM PDT
I think the idea of companies setting up shop in 3D Virtual Worlds was a fad that went away several quarters ago. Sure corps still have presence, but sure as heck are not expanding it. Miss the boat you did!
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by play7 August 3, 2008 7:01 AM PDT
Want to see a failure of a VR world. Look at Second Life by Linden Lab. Not only hase its lowered its standards, but its over run by underage kids. 7 out of 10 users are under the age of 18. Of that 50% are under the age of 15 years of age. Whats worse the game is a heaven for child porn lovers and animal sex lovers. Oh there is gambling as well. But Shhhhhhhhhhhhh don`t tell that to Linden Lab because the banned the activity.( No they didnt ). The fact is Failure of adult VR worlds are slowly dieing because many that fall to the lies and mental control the force users ( like waht linden Lab does with their users). Is nolonger being being allowed to happen. Linden Lab and their group of emotional mind control rules. Well play mental control games. Giving its users a simulation of factors like racism, health and other mental control game. to see how people react to any given simuation. Now by law Linden Lab has purposely broken ever human research by law and has gotten away with it for over 5 years now. Not forgetting FCC law and reg...........Why is strange is how and why Linden laws has gotten away with this infractions.

Second Life is one big bill board for companies to show off their products a service. Which are PAID ad to Linden Lab. There is no interaction between Linden Labs and as CBS new, ABC new, Cnn Network , weather channel, etc. Its all Paid ads to Linden labs to put their names on a island or Ilands to look like their have conntection with Linden Lab. The users are the ones that are being taken for a ride and subjects to mental and Psych simulations of Rape, sexual abuse, racism etc. The KKK in second at times is a stage of simulation to see what happens when facts are place but the person do the simulation. To record how people react and respound with events are unfolded in order of the people incharge. Second Life use to be a fun and pleasurable game. But these days its nothing but hate, money and stealing ( real money) and sex but its users ( that is not even of age to be in the game to start with). Sooner of later Second Life well be closed down because of the events Linden has done to its users.
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by Len Bullard August 3, 2008 9:19 AM PDT
I can't count the number of night clubs where I was hired to perform only to discover all the money spent on neat furniture had no ad budget, or was in a bad part of town, or where I was simply the wrong act for the room. I suspect that unless these builders start finding affinity sites (eg, Vivaty in Facebook), we'll see more failures than successes. That is already the case for nightclubs. On the other hand, the only Starbucks in my hometown that's closing is in the local mall. Sometimes traffic does not equal purchases.
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by rightasrain August 4, 2008 4:48 AM PDT
Virtual Worlds will certainly be a very big part of the online experience in the near future. We see it as a 3D-like experience online, but also immersive and rich with content. I think some of our existing Secondlife areas can give a good taste of what might come (http://rezzable.com/virtual-world-locations-directory).

Many corporates did get burned in 2007 with SL. They did not understand (or really even try to) the 1) reach 2) operations 3) user engagement factors. Most bumbled in as if a virtual world were just some fancy new flash-plug-in (which of course now it is). But what they learned if they were paying attention, is that virtual world space is a lot more like a real world space than a webpage. It is also a 24/7 environment where you can add or ruin brand equity. But main point that people missed, is that the SL user is a strange, global demographic--older, weirder and more ecelectic than anything else on the net.

2007/2006 was exuberance and misguided excitement for this new online frontier. 2008 is the year of backlash--what will 2009 be? We think break-through, but not sure so about Linden Labs role in this.

Virtual world is real-time, interactive, and full of complex content. SL also has a deep enuff service stack around it including VoIP, micro-payments and UGC tools. SL has the best offering right now and still has best position for 2009. But many other players eyeing the space--and btw, Livey ain't a match yet and until Google pumps up the marketing and tech it is not the hot threat that will energize this market.
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by play7 August 4, 2008 7:00 AM PDT
There might not be a 2009 for Second Life. Linden lab is stopped asking for paying users and replies soley on company ad monies to support the game. What worse is Linden lab is forcing many of their older payng users ( that use to get 500l a week) out of the game. Whats worse is Linden Labs has no real support service. As Len stated "is that virtual world space is a lot more like a real world space than a webpage." Well Blake Jeska Linden and here her male partner Torley Linden (who plays a female Linden but rally is a many assume a gay male in real Life) Those two have gutted the interframe work how searchs work and operate. Lieing to would be unknowing companies willing to put down 1000.00(s) of real dollars for personal island for them to set up business on. But what happens is those unknowing knowning companies is the Costumer service ( or the lack of there for ) know including griefters ( people that cause problems within the game for fun and money ). Lag OMG Lag hell slowing the game down to the point it becomes unplayable. Which Linden Labs blame the users for having bad under power computers etc........The old timers that continue to TRY to keep dance clubs going are having a nightmarish time dealing with no support no protection from hackers, etc......... What Linden Labs does do well is removing good honest people that have given their hearts and soles to the game. Only to be driven out but the Linden Police Jeska and Torley Linden because they themselves have to No real understanding how to do their jobs. What they do well is be rude and get rid of anyone they have personal hate towards. Know you call this a way to run a company leave geeks that have no real understanding how to un a business? M. Linden or the New VR of Philip Linden the creator of Second Life and Linden Lab...........Is rolling over in this Avies Grave wondering how any why his dream Of "YOUR WORLD YOUR IMAGENATION" when sadly wrong.......If the Sims on line failed soon enough Linden lab and Second Life as well.

The concept of 24 hours a day 7 days a week of fun and money just doesnt work any more. Yours are smarter and wiser then they were back in 2006 and before."LETS GOING SHOPPING" BUY MONEY BUILD PRODUCTS AND APPEARL TO EARN MONEY!" But what Linden Lab doesnt not tell you is The stealing within the game or usrs content. You might build or design it......But someone will come along and steal every part of your design with in seconds....... What will Linden Lab and Second Life do for those that have their Creative Content stolen?????????? NOTHING!!!!!!!!!!!!!!!!!!

Google is not going to save Second Life and Linden Lab.........Instead it will sink Second Life shio with a direct hit to the flank..........
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Charles Cooper has covered technology and business for more than 25 years. A graduate of Queens College and Columbia University, Cooper received the Excellence in Journalism award from the Northern California branch of the Society for Professional Journalists for column writing.

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