Showing posts with label virtual marketing. Show all posts
Showing posts with label virtual marketing. Show all posts

Sunday, November 2, 2008

I've got a secret.

The following is a reprint of the Ad Nauseam column which appeared in the September 30, 2008 edition of the Metaverse Messenger



Brands are constantly being scolded for their pitiful attempts to break into Second Life. They build a few buildings, offer a few pointless freebies, and then sit back waiting for avatars to come flying in. It doesn't work, it hasn’t worked, and it’s not likely to work.

Consultants, such as Millions of Us, try to convince them that they must offer something to the community, and in some cases the suits have even listened — with varying results. The release of the newest Harry Potter movie was promoted with viral giveaways, and Evian offered samples of their water which were accompanied by free skins that were perceptibly better than the default skins we all get as newbies.

But no matter what they do, it never seems to be enough. The stink of failure covers them like a car that’s run over a skunk.

You could even feel sorry for them if they weren’t so oddly blind to the ultimate problem.

Let's back up a few years. There once was a time in which not a single company had an presence on the Web. There were many reasons for this, but the main one, it has to be admitted, was that there was no such thing as the Web. Once it was invented (by Al Gore, according to rumor), a few of the more forward-looking companies tried their hand at creating virtual stores where customers could get information about their products and even make purchases. Some were more successful than others, but those who made a go of it had several characteristics in common, such as creating sites with value-added services, a running tally of in-store stock, and even methods of contacting real live people for help.

But even the best-laid sites would have withered away if the companies behind them hadn't done one very important thing —they told people about them!

I can still remember the first time I saw an ad on TV for something (can’t remember what it was) which included the URL for their Web site. “Will anyone actually take the time to visit?” I wondered.

Well, people did. Today, of course, it’s rare to find an ad that doesn't include information on finding their online presence. “Call, visit or click” is a phrase that I find occurring with amazing frequency in ads from TV commercials to the printed page.

You see, here’s the thing: if you’re going to do something cutting edge and avant-garde, if you’re going to set up a new approach to doing business, you have to tell people!

This isn’t a secret power-principle of business — or at least it shouldn’t be. If you want people to visit the smart, efficient, clever, dynamic, or what-have-you website, you have to let them know it’s there.

So let’s pop back to the present and take a look at the companies that came into Second Life. Coke has always been considered one of the successes, mostly because they didn’t end up with a complete, abject failure. But the bar for success in virtual world marketing, it has to be admitted, has been set pretty damned low. Still, let’s credit them with their little triumph. How did they spread the word about their sim? Well, by word of avatar-mouth, for one. Then there was…uh. Well there was word of avatar-mouth — damn, I already mentioned that one.

The fact is, aside from the short spurt of publicity they gathered when they first came in world, the bright boys and girls behind the bold new marketing concept never told anybody about it.

Nobody.

Or maybe I missed something. Perhaps you can recall some TV commercials from the time which ended with an invitation to visit their new virtual land in Second Life? A tag at the end of magazine ad with the SLURL of their corporate island with an offer of a free virtual Coke? Anything like that? Anyone?

No. I didn't think so.

The fact is, to the best of my knowledge, not a single corporation which has attempted in -world marketing has bothered to clue in their customers. None.

Does this strike anyone else as being, oh…I don’t know. Brainless? A tad dim-witted? A few swings short of a playground?

So here's a bit of advice for anyone contemplating yet another marketing blitz in the untapped world of Second Life: when you do it — tell people about it! Put the information in your real world publicity. Generate interest. That is, after all, part of the reason you want to come into Second Life in the first place, isn’t it? To generate or renew interest in your brand? Well, everything else aside, a good start is by letting the general public in on the secret.

And of course, as more companies include references to Second Life in their advertising, the more people will be drawn to our humble little world which, in turn, will also mean a larger audience for in-world promotions.

See how that works?

Tell people, ya nitwits!

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Monday, October 13, 2008

User-created content: great for users, but hell on advertisers

The following is a reprint of the Ad Nauseam column which appeared in the October 14, 2008 edition of the Metaverse Messenger



A TV commercial can cost hundreds of thousands, sometimes even millions of dollars. The reason is two-fold: not only are vast numbers of people watching the shows (and hence the ads), but the production costs of TV shows put their creation well beyond the means of the average person. Even with a few hundred channels, there is still a limited number of programs because it takes big corporations and big bucks to make even the cheapest reality show. So what would happen if a technology came along that allowed people to create their own shows for free?

The answer is simple: ad revenue would disappear. With an almost endless number of new shows, strategic ad placement would become impossible and the worth of an advertising spot would plummet. Shows with ads would lose audience to shows without. Ads may be placed on the service distributing the shows, but they would have little relevance and be easily ignored. In short, advertisers would essentially ignore the platform and the only way it could make money would be to charge for its use.

As most of you probably realize, this situation is not hypothetical — it’s YouTube. And while nobody can doubt the success of the site in terms of users, its earning power has remained stubbornly untapped. A 2006 article in the Bivings Report by Erin Teeling (“YouTube: Show me the money!”) pointed out that even though the video-sharing service was still in its early days, it had already racked up some impressive statistics: 6.1 million videos, a total of 9,305 people-years spent watching them, roughly 500,000 profiles, and a ranking of 8th most popular site in the US. But these bright and shining figures merely served to cast a darker revenue shadow. “Underneath these amazing user stats,” said Teeling, “there are financial problems. It seems that YouTube and other sites like it that depend on free, user-generated content, have yet to figure out a way to turn site traffic into profit.”

Along with the difficulty of trying to monetize user-created content, Teeling’s 2006 article lists a number of other YouTube drawbacks that sound eerily similar to those facing Second Life, including copyright infringement and the risk of a brand’s association with “offensive or questionable” content.

Google bought YouTube in 2006, but as recently as this past June the corporation had to admit that its famous Midas touch wasn’t working. Sarah Arnott’s article for the UK’s Independent (“Google admits it still can’t make money from YouTube”) quotes Eric Schmidt, Google’s chairman and chief executive, as saying that while there was obviously money to be made from the site, they still hadn’t figured out how to do it.

In only a few months, however, the situation appears to have changed. This week Google unveiled a new advertising plan which shows every chance of succeeding. Anders Bylund of The Motley Fool, a major investment online magazine, explains that since “six of the ten most-watched videos of all time are straight music videos,” the plan is to incorporate “unobtrusive but easily accessible links” to the online stores selling the actual songs. This will give viewers the opportunity to buy their favorite tunes instead of always having to go to YouTube. And as Bylund points out, “this is just the first example of YouTube growing into a full-fledged e-business platform.” Corporations whose content appears on the site can “claim ownership of the user-uploaded videos they used to want removed and add some cash-generating shopping links to them.”

But while we may look for guidance to Google’s YouTube solution (while keeping in mind that it has not yet proven successful), we cannot transfer it directly into Second Life. YouTube content sits on a neutral background easily accessible to advertisers: Second Life content sits on a background owned by the creators of the content. While real-world companies may be able to make deals with a few Second Life content providers to give space for related advertisements, it’s hardly a universal remedy. One example would be Coca-Cola renaming the popular in-world blues venue “The Junkyard Blues” to “Nestea Live Music Stage at Junkyard Blues.” And while we applaud the idea behind the tactic, it is still little more than a sponsorship package. Coca-Cola would be naïve to believe that residents are going to start drinking a particular beverage merely because of a banner hanging over a stage — especially a beverage that has no traditional connection to the music. (Now if the Junkyard Blues stage were to be sponsored by Johnny Walker or Southern Comfort the results might be more positive.)

The Google approach to YouTube provides a new service that will both improve the YouTube experience and earn ad revenue. The Coca-Cola approach to Second Life, on the other hand, provides nothing new and brings little, if any improvement. But more important is the involvement indicated by these two approaches. The new Google strategy has all the earmarks of something from the mind of a dedicated YouTube user, while the Coca-Cola strategy feels more like a pretty good idea cooked up in a board room among people who have visited Second Life only long enough to “get a feel” for it.

The key point is simple. Those who are truly interested in breaking into the virtual world are going to have to forego their corporate approaches and learn to love the world for its own sake. At that point it’s quite likely that the key to serious ad revenue or marketing success will suggest itself: first and foremost as an enhancement to the experience, and secondly as a means to make boat-loads of money.

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