But the purpose of this pretty detailed post is to simply list and try to categorise the many types of business Augmented Reality apps appearing in the market and to try to identify opportunities.

Augmented Reality Business by Gary Hayes

According to wikipedia, the first manifestations of AR appeared in the late 60s, became real in the 70s and by the 90s were already being used by major companies. Now portable computing is finally powerful enough to deliver AR to anyone who has a smart phone or latest generation PC or console. For those unfamiliar here is my simple definition of Augmented Reality.

Information, 3D models or live action blended with or overlaid onto the physical world around us, in real time. A camera & attached screen is used to view the combination of real world and metadata or rich media. Devices or systems commonly used for AR include:

• Mobile devices with inbuilt cameras such as iPhone, DS Lite, PSP or Android
• A head mounted display HMDs (eg: glasses or futuristic contact lenses) attached to a wearable networked computer
• A PC or Mac with webcam
• A games console with camera accessory
• A large TV screen with advanced Set Top box and Web cam
• Others in development

There will be hundreds of business, marketing and educational applications alongside the many 1st generation entertainment examples currently emerging. As usual the video game and porn industries are pioneering the research and development of the technology but we are about to see a plethora of more mundane utility & life enhancing applications about to swamp the market. Combine this with hundreds of space cadet ‘toys’ and viral fluff and we start to see the beginnings of a large industry. Of course the usual caveats apply but unlike say virtual worlds which suffered from too much early hype, these apps are much more accessible to anyone with a decent smart phone, up to date games console or computer with webcam – there is a big difference.

But before going onto my list (which is of course non-exhaustive) here are my basic types of Augmented Reality from a slightly technical perspective but which we can apply to commercial and marketing applications. My presentations and paper have much more detail with specific case studies of each.

GARY’S FIVE TECHNICAL TYPES OF AUGMENTED REALITY

1. Surface – The most understandable form of ‘reality that is augmented’ would be screens, floors, walls etc that respond to the touch of people in them providing them with virtual real time information or collaboration
2. Pattern – The AR system performs simple pattern recognition on a shape, marker (usually on a framed card in the real world scene) or face and replaces it with a static or moving element e.g: a 3D model, info, audio, video stream or loop etc: You view the ‘items’ in the scene with you
3. Outline – This is where your hand, eye or body outline is picked up and seamlessly ‘merged’ with the virtual elements. Simple example where you can pick up a 3D object that doesn’t exist because the system is tracking your hand outline.
4. Location – Based on detailed GPS or triangulation location & position/view of the camera/device the AR system can overlay information precisely over buildings or people as you move through real space.
5. Hologram – Using ‘smoke & spinning mirrors’ literally in some cases, virtual or real items are ‘projected’ into the physical space you are in and can be interactive with based on cameras tracking real world impulses e.g: hand gestures or audio signals

Before the more detailed list I embed my summary flickr chart whose purpose is to try to categorise types of business orientated augmented reality apps so to identify opportunities. The graph places 16 on axes of commercial value (likely revenue or marketing potential) vs adoption (scale of popularity vs a niche, client user base). It is a starting document to aid classification of this emerging commercial sector that I hope you find useful. The AR types, color key linked to each model is suggestive only. (Click on image for enlargement over at my flickr pages)

Below are longer descriptions of my top 16 Business Applications/Models for Augmented Reality and I suspect I will develop twenty more before the day is out! I have tried to break up some of the big AR areas such as ‘locative AR’ and separated them into several opportunities. This is an exercise looking at the marketing or commercial ‘intention’ vs a traditional pure business model, broad approach. It is a starting document to aid classification of an emerging commercial sector that I hope you find useful.

1. IN SITU: Aiding sale by seeing projects & products placed in the environment before completion. The benefit of a customer or client seeing a finished project, before it is complete. For example 1) real estate agents can scan and show an empty house full of stylish furniture or 2) an architect who can show the billion dollar client the skyscraper as a model perfectly aligned with the other buildings on the empty site and 3) Customers who want to see what the clothes look like on ‘them’ (as in the Zugara video above and Cisco below). The list of applications goes on.
2. UTILITY: Selling life enhancing AR applications perceived as useful. Development and commercial sale of applications such as underground train orientation, bus stops & times, traffic alerts, airport gates & plane arrivals etc: all overlaid in real space. Sometimes called AR browsers as they cross reference what or who you are looking at with anything or everything off the web or like this UPS example allows you to see if your ‘stuff’ will fit the ‘virtual’ postal boxes.
3. TRAINING: Hands-on with complex equipment and work scenarios. Using ‘outline’ recognition this allows us to be virtually ‘hands-on’ with complex equipment in difficult-to-practise work scenarios. Bomb disposal, surgery, flight simulation. . Indeed according to wikipedia the actual phrase Augmented Reality was coined by Tom Caudell in 1992 while at Boeing where workers trained to wire aircraft on AR systems. A massive industry for the developer community charging b2b rates.
4. SOCIAL GAMING: Both connotations of the word, pay-per-play mixed reality games in physical space. The potential to run pay per play (e.g: virtual paintball style) games in physical location and also live connected betting on sports or other competitive play – e.g: You point your iPhone at the horse and wirelessly place a bet – mid race! (odds adjusted of course) or using basic surface AR you play with others in a new kind of ‘games’ room!
5. LOCATION LAYERS: Blended guides to new places, tourism, enhanced travelling or themed space. For travellers just arrived at your city, theme park or other experience you can provide them with pay for tools that will help them take the most ‘mutually beneficial’ route after they arrive. Free data from wikipedia, local bloggers or more commercial entities add depth.
6. VIRTUAL DEMO: Display to promote sale, of product in pre-release or remotely via catalogue etc: To promote advance sales before the consumer gismo hits the stores, an AR display or the device/s so potential customers can manipulate it, see it from all sides, even customise the order. We may see future stores displaying the majority of items on the shop floor as AR while the item is shipped to your house before you get home! The reverse of this, an AR catalogue (as in the Ikea video below) that pops up models to help you build or see the product in 3D.
7. EXPERIENTIAL EDUCATION: Pay-per-visit educational services to museums, ancient sites etc: Pay-per-visit (ppv) to visit highly experiential museums, theme parks, zoos, ancient sites or exhibitions but with a higher purpose of providing deeper levels of information & visual sense than a simple plague or hard to follow guide book ever will. The sleepy animals in the zoo come to life, the ancient fossil is animated into an overlaid Google Earth, the Battle is enacted ‘on the original battlefield.
8. ENHANCED CLASSIFIEDS: An AR directory that promotes local 3rd parties product & services overlaid at the location. One of the obvious apps where someone in a city or town looking for a specific item could be ‘guided’ to it. A very affiliate model where the company that owns the Augmented Reality listing mechanism will take a slice of any fulfilled sales. A lot more to this of course.
9. 3D VIRALS: Branded company or personal promotion & ads using ‘cool’ 3D toys. Pattern based 3D model that entertains and is spread virally. The YouTube moment as a million links to cool ‘3D stuff’ that takes place next to you. Already we see some AR apps that allow you to record scenes of you interacting with said ‘3D viral’ and pass those around too, titillation, quirky giveaways– JibJab-type, put ‘you’ in the cartoon but revered, they are with you in 3D space.
10. PERSONALIZED SHOPPING: Walking around stores made relevant, opt in personalization and targeting. The oft mentioned Minority Report example. But in the pulled model, here you can deliver information to potential customers scanning stores, streets or shelves for discounted or personally relevant products.
11. COOPERATION: Service industry for augmented virtual meetings. We are all familiar with video conferencing, a few have dabbled in 3D virtual world get togethers but AR meetings are a game changer. The potential here using ‘discrete’ personal screens is to have the inevitable remote meeting with live feeds of your colleagues, blended into your room – pay-per-ARmeet
12. BLENDED BRANDING: The equivalent of hoardings, virtual poster ads. Once given a reason to be scanning outdoor areas with their AR devices the potential to deliver topical, timely and relevant ads or branding into the scene. Again care must be taken as AR spam (like social network spam) will quickly irritate, but like free to air TV, using various sponsored or freemium biz models will mean a certain amount of branding will be acceptable.
13. AUGMENTED EVENTS: Pay-per-use of enhanced sport or pop concerts. At live events spectators can pay and then scan their view of the ‘match’ for the latest information on sporting achievement or pop star gossip and of course tracking trails or watching replays in situ, merged over say a static real sporting scene.
14. INTERTAINMENT: New form experiential TV and films. Following on from my ‘AR story’ post, we know people will pay a premium for a new kind of ‘film’ experience where you ‘live the experience’. How about one that plays out at ‘your’ place. Semi customised marker or location AR apps will layer Brad or Angie into your lounge, onto the coffee table or your ‘composited’ in real time into the latest Mixed Reality TV show. Combined with 3D viewing technology will make Blu-Ray seem so 18th century.
15. UNDERSTANDING SYSTEMS: Creating AR for internal or exploded views of complex objects. Primarily useful in training or helping sell something where physically taking it apart is not possible a view of a car or other complex object can be enhanced. Labels or even an exploded view in real time can help get the message across.
16. RECOGNITION & TARGETING: Pushing ‘relevance’ to outdoor consumers – facial recognition linked to online data. To be used with care! It will be interesting to see how privacy laws affect this but in a pushed model you could ‘scan’ visitors to your store, identify their faces, do background links to their ‘social networks’ followed by personal targeting while they are shopping. We all know this is going to happen!

Some examples:

CISCO’s future of shopping

BMW Future of Car repairs

Augmented Reality in Marketing and Sales

James Cameron’s Avatar – Augmented Reality Entertainment

IKEA’s Future Augmented Reality Catalogues

To finish a few lines that describe one of my presentations coming up that acts as a nice conclusion…

It has been called the future of social mobile networking, experiential marketing and entertainment, Augmented Reality is about to snowball. With hundreds of apps launching onto iPhones, Games Consoles, Advanced TV and your PC this new technology allows us to view our world in exciting new ways. Once the domain of science fiction or super computers this new technology, blending the real with virtual, is now literally in the hands of everyday consumers and business. Augmented Reality is simply using a camera with screen to layer rich media and information over ‘our’ real world, in real time so we can now scan and layer web info over products and people in the store or street and provide virtual, ‘in situ’ hands-on demonstrations and deliver the ultimate ‘guide’ to our complex physical world. Is AR the new 3D viral experiential marketing or another temporary fad?

Finally, finally for those interested here is my Augmented and Mixed Reality YouTube playlist if you have an hour or so to spare to view the current collection of 60 +

Below are my slides, a little descriptive text below that and at the bottom of this post some deeper insight into SmallWorlds (given most of my readers probably know Habbo already? – If not, Why Not!? ). I included one slide from Jeff Brookes set looking at Hitwise’s stats on browser worlds and other sites in terms of session length which will no doubt raise a few eyebrows!

Virtual Worlds & Business: What’s The ROI?

Virtual worlds are maturing at a rapid rate and brands are realising there are valuable business opportunities within them. Whether the objective is engagement, research or brand presence, virtual worlds are proving to be a legitimate marketing channel. In this session our panel will look to provide insights into the business benefits of working within a virtual world.

Presenters

• Gary Hayes, Director, Laboratory for Advanced Media Production, AFTRS & CEO MUVEDesign (Australia’s leading SL developer!)
• Jeff Brookes, Regional Director – Asia Pacific, Sulake Corporation (habbo.com.au)
• Mitch Olson, Co-Founder, SmallWorlds.com

There were several important messages in my introduction. Firstly making sure we all understand the different platforms social virtual worlds are operating on so I briefly described

1. Layered or Parallel worlds – cute 2D type avatars that move over the top of 2D web
2. Browser Worlds – walled garden that run inside web browsers, often as isometric views as flash or shockwave
3. Client Worlds – anything from 20MB to 3GB downloads of data and the world is obviously much richer than browser worlds but do need higher spec computers
4. Console Worlds – a relatively new kid on the block, social spaces that exist on games consoles. All the rendering grunt is there and the avatars are often linked to the PS3, Wii or XBox360 real life account. PS3 Home is the easiest way to match to worlds like Habbo or There.com
5. Note there are hybrids of the above and I would put ExitReality down as a hybrid of 1 and 3 as it turns a web page into a client style world

Here are the images of the above part of the presentation

I decided that a good ‘spine’ to hang the introduction on was the sort of negative questions floating around from those who don’t really understand what’s happening with web 3.0, the live virtual world space. This includes the paranoid printed press, a few out-of-touch businesses, and digital media companies/consultants more interested in iPhone/mobile games or Facebook widgets which is something they can truly explain (read: make money off).

Press hyperbole or myths?

• Virtual Worlds are on the decline?
• There’s no one in them?
• & people don’t spend long there?
• They are for kids or social ‘games’ not business?
• There are no marketing models?

But I then addressed each question in turn showing real world stats and examples. Obviously in recession investment in new tech/services are going to be hit and recent reports do suggest a consolidation of investment into kids worlds, hinting at a lowering of VC in the ones I highlighted in my presentation, but this whole area is still something education & business are advised to R&D and understand fully – as a minimum. As we know it will be new ways of doing business, more immersive and efficient ways to collaborate and alternate forms of entertainment that will be partly what will bring us out of recession.

I finished the talk with a quick overview of the main models that virtual worlds (and most online games) can be monetized. Items 1, 3 and 4 were picked up in a talk on the 2nd day of ad:tech looking at how Nike engaged with console ingame campaign experts Massive across a few platforms.

1. Static Advertising
2. Promotions & Sponsored events
3. Virtual Goods & Product Placement
4. Dynamic InWorld Advertising
5. Branded Spaces
6. AdverWorlds & AdverGames

After my talk some great examples from Jeff Brookes from Habbo followed by Mitch from Smallworlds. I am always fascinated by the methods Habbo engages with its loyal and large community and was equally fascinated by Small worlds thinking too and how they are ‘integrating’ themselves with the existing 2D social networked web. This video by the infamous Robert Scoble features Mitch Olsen and Ted of SmallWorlds

They talk about the main traditional world features but then go onto the interesting areas of embeddable worlds (the Google Lively Killer app – not exploited), API integration with almost anything (twitter feeds, YouTube vids, FB updates on walls anyone) and the most interesting ‘missions’. You are encouraged to explore, meet folk, shop and basically get involved – Mitch says this is like the LinkedIn profile thinking, until your profile is 100% filled in you feel like you are missing out. I likened it much more like World of Warcraft, set players tasks, set them group tasks, give them rewards. This to me could be SmallWorlds real killer applet. At the moment they have around 400 000 users and that looks set to take off in the next months.

Tony Fendall blogged about a particularly cute feature that allows (his words) -

One important thing which was missed is that they didn’t have time to talk about all the cool micropayment features (which Ted alludes near the end) such as Gambit, OfferPal and Zong. Gambit and OfferPal are both services which allow users to earn SmallWorlds currency by completing tasks. These tasks include things such as answering surveys and give amounts of currency proportional to the amount of effort put in. This is a great way for players (who may not have a credit card) to still be able to earn a premium SmallWorlds experience. Zong is a simple cell phone payment service, where by users can pay for a premium SmallWorlds experience using their mobile phone. For an excellent look at how we have integrated Zong into SmallWorlds, check out this YouTube video created by the developers at Zong:

Note a cross post from Gary’s other main blog personalizemedia

As promised a rough transcript of my keynote talk to CeBit last week based on my experience of actually building some Second Life sims, talking to those who use them and creating branded environments that have more usage than any others inworld, so far. There will be a video and/or podcast at some point from CeBit TV but for now lots of ‘nice’ words and this YouTube video I uploaded…

Click here to view the embedded video.

‘
Hello I’m Gary Hayes and thank you for inviting me here to speak at CeBit this afternoon. I hope that by the end of this very brief introduction to virtual worlds, and particularly Second Life, you will be more aware of the major changes that are happening to what we used to call ‘the web’. Virtual worlds are a new disruptive and transformative medium and one that is becoming a significant force alongside our traditional media experiences. But it is still early days. It is the silent movie era, a bit like TV in the late 40s or the web itself in the early 90s – but already virtual worlds are a place where the audience stops being the audience, who become and create their own stories. For those without any exposure to virtual worlds this talk will be a beginners guide and for those who already know something or a good deal about these 3D shared spaces there will perhaps be one or two surprises, Hopefully we will go inworld too if the connectivity gods are with us.

So what do we mean by virtual worlds. In very simple terms they are a bit like MySpace meets the Local Pub meets YouTube meets The Shopping Mall meets Flickr meets World of Warcraft – ok not that simple. We are really talking about non-game based, online spaces where people create new identities and become a part of a larger resident community. There are often no rules, only those set by the inhabitants themselves, this makes it a particular challenge for brands as we will see later (they don’t like to be told how to live!). Many of you would have heard of Second Life, with nearly 6 million registrations at the moment, but there are many others. Habbo is interesting as a simple isometric service for teens now with 76 million registrations and nearly 8 million regular users. Playstation 3 is about to launch ‘home’, a sort of virtual apartment suburbia connected to other PS3 players and EA games has just teamed up with Endemol to deliver what we sometimes call Mixed Reality (cross-over programmes between TV and virtual worlds). There are quite a few others such as there.com, Kaneva and many new kids growing up on the block such as multiverse, croquet or outback online. MTV Networks used the there.com engine to do some extremely interesting TV/Virtual World cross-over services like Laguna Beach, which I sadly won’t have time to talk about. Common to all of them are people using these shared worlds to interact with others around the globe, for hours at a time.

So what are the forces at work here, what is driving this change? Well I suppose there are two key ones. The first is the shift from humans wanting the internet to be more than the rather lonely and non-real time experience to one where as a ‘participant’ they can have real time, collaborative and far richer immersive social interactions. Note I am careful to not call them, the audience – be aware that any media that still thinks of the residents of virtual worlds as audiences are doomed to failure. The second force at work here is to do with residents in worlds wanting to be far more active, creationist and imaginative. They are creating their own experiences versus passively consuming media, such as on TV or via YouTube for example. You have all heard of web 2.0 (blogs, wikis, flickr – the sharing web) well I like to think of virtual worlds as ‘part’ of web 3.0, the real time, co-creative web. It is still about sharing but in a far more natural setting – this is a space where you can walk up to someone and ask “Where can I buy some shoes and will you come shopping with me” versus typing the word shoes into some abstract search engine on the web and spending hours looking at flat pictures. A question I often get asked is, “Is this hype and something that will go away?” Absolutely not. I am old enough to have lived through the dawning of the web and early failed 3D world services, this is totally a part of that on-going evolution and this will now be here for good. The real question that should be asked, and perhaps the focus of my talk, is how are brands and professionals attempting to integrate into these spaces, will they create a virtual paradise or another dotcom burst?

The thing that’s common with all virtual worlds is the real time shared experience, and that should be the key to anyone thinking of setting up a branded space inside these worlds. Participants want to be just that, participants and co-creators. In a world like Second Life (now four times the size of San Francisco around 210 square miles) and where 99% of the content is made by the inhabitants, for a brand to simply plonk some souless buildings, or theme park, or even well displayed real world product falls way short of what the residents actually want. The message that we are getting from the inhabitants is for businesses to “play with me, don’t sell at me.” This is very important. These worlds are extremely ‘sticky’ and inhabitants invest a great deal of themselves in co-creating the environment and the numbers speak for themselves. In second life at the moment there are over 200,000 unique entrants per day spending an average of 4 hours in world – that’s nearly 1 million user hours, and with a population growing at around 30% per month you can see why many other virtual worlds will be popping up in the next few months and years to meet this demand.

Lets have a look at a very short video (which can also be seen on the Project Factory stand throughout the day) showing some of the social activities, the thing that is really driving demand in these environments.

SELF CUT VIDEO “a montage of a variety of experiences” (in background starting up SL if connectivity for demo)

So a brief taste of what goes on inworld, very experiential activities such as dancing, sport, ‘inworld tourism’, education, collaborative building and so on. These are often missed or ignored by the mainstream press. With my other hat on as Director of the Laboratory for Advanced Media Production at AFTRS I am also active in the educational areas in Second Life where collaborative, experiential teaching is growing into a powerful tool – a very vibrant and active community. But who are the real inhabitants? In Second Life it is far from being just young males. The average age is 33 and women constitute around 43% of the total. Interestingly the time spent gender wise is reversed. Of the total time spent by all participants, females account for 60%. Looking at the international split around 31% are from the USA, 48% Europe and 21% rest of the world. Europe is by far the fastest growing area now with growing numbers of English, French, Dutch and Germans so the servers (currently in San Fran and Texas are in the wrong place!). Back to the age question, one fascinating statistic I gleaned last week from Phil Rosedale, the CEO of the makers of Second Life, was that those over 60 years old spend 30% more time in Second Life than those aged 30. Lets try to pop into world now, hopefully, and have a quick two minute wander.

DEMO INWORLD. This space is called the Pond. The one that the Project Factory produced and built for Telstra BigPond. I am not sure who is around but regardless lets have a look at how Second Life works. That is me, the one with the wings and here I am at the main welcome area. Lets go for a short walk, if we meet anyone we may have a chat. It is important to have a welcoming or totally unique environment, look the ripples on the lake, palms, things to do, boating, dancing and of course a popular pastime, flying – (impro a bit here depending on audience reactions). I would like you to notice too how the advertising and brand presence is not ‘in your face’, more about that later. CLOSE DEMO.

Second life is not just about sex, money and griefing. Griefing, by the way, is a term used to describe irritating behaviour, which actually is extremely easy to control. Most of the stories you hear about ‘virtual terrorism’ is really a toxic combination of unprepared companies inworld and the media that likes to find ‘an angle’, just like the real world then. The Project Factory and other Second Life developers have many easy to implement strategies to reduce this to a minimum.

Onto money and opportunities for brands. For the moment it is about getting in there early (first mover advantage), learning about what works and collaborating with the existing resident communities. This both shows that you are ahead of the curve but also open to really having a direct relationship with your customers and most importantly learning from them. It is a way to reach and understand your existing clients and prepare for what will be a mass audience in a very short time. A recent inworld survey by CB News in partnership with Rep̬res asked over 1000 Second Life residents their opinion of real world brands and there were some surprisingly results. 66% believe that the presence of RL brands has a positive impact on SL and 45% of respondents even want more brands because they enhance and give more credibility to Second Life, a realism and make SL more interesting, by increasing the number of residents. But at the moment we are not talking about mass audiences. Successful brand presences, and two of the recent Project Factory builds in Second Life are in the top five, may have anywhere between 30-60 thousand unique visitors per quarter. These will seem like small numbers to some brand owners and advertisers, but, and here is where it gets very exciting, the inhabitants are spending anything between 15 minutes and 6 hours per visit to your brand! That figure is unheard of in almost any other media even more significant and important for those concerned with reach is that those residents are the most active in the blogosphere, and millions of impressions are generated outside these worlds Рthey tell of their lengthy experiences in the other social networks.

Shopping in virtual worlds is actually fun for the inhabitants and comes up as one of the most popular pastimes. The ability to browse products alongside your trusted friends is more akin to the mall than eBay of course so this is a real opportunity for those who want to attempt to make in or out of world sales. The more progressive companies are allowing consumers to co-design product and even order real world product from within the environment. A simple example. Very similar experiences to real life are being created in these worlds such the shared ‘media’ experience – listening to music, watching movies with others is pretty cool, you can chat and play-around with your fiends alongside the latest film. Dominos pizza realised this early and now allow you to order your ‘real’ pizza while you virtually watch movies with your ‘distributed friends’. Domino’s IT director Jane Kimberlin said “Second Life is where Domino’s customers are and therefore that’s where the pizza company needs to be too.”

How to make money? As is well publicised (in fact I can’t believe I am still talking about this) Linden dollars is the Second Life currency which can be converted into real world dollars. There are some businesses operating in Second Life that are earning real money selling virtual products. These include clothing, dance animations, selling or leasing property, buying even selling shares and the number of Second Life residents generating more than US$5,000 in monthly income has more than quadrupled to 116 in the past year, according to Linden Lab. Also brands who create product inside Second Life own the IP inworld and more importantly they retain it if they move it outside and create out of world, real product, so great news for inworld R&D. But selling things shouldn’t be your focus. It should be about integrating your brand and becoming a trusted addition inside this unique and vibrant social network. You must add value and not just build and run or build and not be around to welcome your visitors. There are way too many empty branded spaces in some virtual worlds. Lets see some of the brands that have already taken the plunge, this is a short edit of a longer video I compiled on the stand and it looks at a few recognisable names.

SELF CUT VIDEO: Motion grabs of branded spaces in world. 3 minute edit of the longer 30 minute stand one.

Quite a few recognisable brands there, so how are they doing?. Well on Thursday last week I went inworld and using the built in Search/Places facility which brings up the standardised traffic figures I looked at the ‘dwell’ traffic for each of them. Dwell is not just how many visits but how much of their inworld time they spent with each of the major brands. Also the inworld traffic measurement is the only real way to compare like with like which is why I am showing it to you. So here are the results.

1. BigPond – 18139
2. Pontiac – 13832
3. IBM – 12850
4. Showtime (L Word) – 7233
5. ABC TV Australia – 6898
6. NetG Training – 6536
7. Mercedes-Benz – 5656
8. Nissan – 4269
9. Mazda – 2827
10. Dell – 2759
11. MTVN – 2317
12. Toyota – 2119
13. Sun Microsystems – 1728
14. Sears – 1596
15. Sony BMG – 1560
16. Cisco – 1521
17. Adidas Reebok – 1351
18. Sony Ericsson – 1242
19. PA Consulting Group – 1138
20. Circuit City -1089
21. Reuters – 1019
22. BMW 842
23. Intel – 829
24. AOL – 797
25. NBC Universal 745
26. American Apparel – 596
27. Starwood Hotels – 35

Great news for Australia with BigPond and ABC (built by the Project Factory) in the top five and this is months after launch, so outside the hype curve. But why are some of the others so low? All those wonderfully designed, branded buildings with lots of things to do? Well to me a couple of the critical elements that many brands have missed are -
Firstly– Creating spaces that are just really nice to spend a long time in. Sounds simple but many corporate builds are just cold and too representational. They should be organic, of value and welcoming and where inhabitants can create their identities inside their own stories. Of particular note is the outback bar area of the Pond which is currently in the top ten of all second life brands itself on a ‘dwell’ basis, but more importantly it is part of a mix of features and functions that you need to create.
Secondly – A space where the inhabitants can create or contribute to the environment. So both The Pond and ABC have sandbox areas where residents (particularly new ones) learn to build and add things to the branded space. Also requests for changes from the visitors to the existing build should be taken seriously and acted on. Give them a sense of ownership of the space and they will thank you which will build trust.
Thirdly – Be authentic and talk to them at an equal level. Too many companies still talk down to their customers as their avatars do the ‘hard sales pitch’ thing. This is a real opportunity to show the human side to the brand, give it personality and again that insight will be endearing to the residents. A major consideration for many brands is to actually commit ‘real life’ people to be in the environment with the visitors 24/7. If you think you wont be able to collaboratively manage the community by factoring in the human resource follow-up, it might make sense not to start at all.

Advertising in these worlds are often seen as a big no, no from those inworld. Especially the old in your face, irrelevant, broadcast ad model. One thing we are experimenting with at the Project Factory is personalized and targetd advertising. This is not some Orwellian (or Minority Report) nightmare, more a way that the environment (at its crudest level ad hoardings) will change dependent on who is around them but there are many more subtle ad R&D experiments we are trailing. We, like many other developers, are learning as we go along and will never assume that this sort of functionality will prevail. An area that we definitely believe is here to stay is allowing residents to creatively interact with your brand or product. So let them co-design new product with you and listen to what they say about your existing products or services. Never before have brands had this opportunity to be so close to the consumer, you are in there with them, in real time, collaboratively.

Companies succeed in virtual worlds when they take much more of a lifestyle approach to their marketing. Whether you choose to go down this road and participate or not, Virtual Worlds will remain to be one of the most compelling ways we will interact socially and commercially in the future. The Project Factory’s virtual world services are also about merging the real with the virtual and creating experiences that are interactive, social and immersive. It is a very exciting time to be involved now at the dawning of this very real, virtual revolution. I hope that this brief talk wheted your appetite. If you want more come talk to us on our stand and check out the website listed here.

Thank you and time for a few questions?

and not mine but a great video about potential for brands (albeit slightly smoke and mirrors re: the interactions in this video) from Text100 and thousands of views on YouTube.

Click here to view the embedded video.

Posted by Gary Hayes ©2007