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		<title>16 Key Augmented Reality Business Models</title>
		<link>http://www.muvedesign.com/16-key-augmented-reality-business-models-2/</link>
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		<pubDate>Fri, 23 Oct 2009 14:08:15 +0000</pubDate>
		<dc:creator>Gary</dc:creator>
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		<description><![CDATA[A cross-post from Gary Hayes&#8217;s Personalizemedia Site (with permission!) &#8230; As promised a more specific &#8216;commercial&#8217; follow up to my previous post on this topic which was more &#8216;story&#8217; centric. I am developing and producing a range of Augmented Reality (or if you prefer AR, ‘blended or layered media’) applications at the moment. I have [...]]]></description>
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<p style="text-align: left;"><strong>A cross-post from Gary Hayes&#8217;s </strong><a href="http://www.personalizemedia.com/" target="_blank"><strong>Personalizemedia</strong></a><strong> Site (with permission!) &#8230;</strong> As promised a more specific &#8216;commercial&#8217; follow up to my <a href="http://www.personalizemedia.com/new-playgrounds-augmented-reality-story-worlds/" target="_blank">previous post</a> on this topic which was more &#8216;story&#8217; centric. I am <a href="http://muvedesign.com" target="_blank">developing and producing</a> a range of Augmented Reality (or if you prefer AR, ‘blended or layered media’) applications at the moment. I have also been asked to present at a few conferences and create a detailed white paper on the implications of AR for government &amp; business looking at privacy, legal, copyright &amp; crime issues.  As readers of this blog will know I also <a href="http://lamp.edu.au" target="_blank">lecture, run workshops</a> and work with creative teams to come up with future ‘social entertainment’ based around virtual worlds and augmented reality.</p>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">But the purpose of this short post is to simply list and try to categorise the many types of business Augmented Reality apps appearing in the market. 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. But first my simple definition of Augmented Reality.</div>
<div id="_mcePaste" style="position: absolute; left: -10000px; top: 0px; width: 1px; height: 1px; overflow-x: hidden; overflow-y: hidden;">Information, 3D models or live action blended with or overlaid onto the physical world in real time. A camera &amp; attached screen is used to view the combination of reality &amp; real time virtuality. Devices or systems commonly used for AR include</div>
<p>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.</p>
<div id="attachment_1619" class="wp-caption aligncenter" style="width: 570px"><img class="size-full wp-image-1619 " style="margin: 5px;" title="Augmented Dollar" src="http://www.personalizemedia.com/wp-content/uploads/2009/09/money_ar_comp.jpg" alt="Augmented Dollar" width="560" height="329" /><p class="wp-caption-text">Augmented Reality Business by Gary Hayes</p></div>
<p style="text-align: center;">
<p><span id="more-372"></span>According to <a href="http://en.wikipedia.org/wiki/Augmented_reality" target="_blank">wikipedia</a>, 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.</p>
<blockquote><p>Information, 3D models or live action blended with or overlaid onto the physical world around us, in real time. A camera &amp; attached screen is used to view the combination of real world and metadata or rich media. Devices or systems commonly used for AR include:</p>
<ul>
<li>Mobile devices with inbuilt cameras such as iPhone, DS Lite, PSP or Android</li>
<li>A head mounted display HMDs (eg: glasses or futuristic contact lenses) attached to a wearable networked computer</li>
<li>A PC or Mac with webcam</li>
<li>A games console with camera accessory</li>
<li>A large TV screen with advanced Set Top box and Web cam</li>
<li>Others in development</li>
</ul>
</blockquote>
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<p>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 &amp; 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 &#8211; there is a big difference.</p>
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<p>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.</p>
<blockquote><p><strong>GARY&#8217;S FIVE TECHNICAL TYPES OF AUGMENTED REALITY</strong></p>
<ol>
<li><strong>Surface</strong> – 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</li>
<li><strong>Pattern</strong> – 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</li>
<li><strong>Outline</strong> – 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.</li>
<li><strong>Location</strong> – Based on detailed GPS or triangulation location &amp; position/view of the camera/device the AR system can overlay information precisely over buildings or people as you move through real space.</li>
<li><strong>Hologram</strong> – Using ‘smoke &amp; 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</li>
</ol>
</blockquote>
<p>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)</p>
<p><a title="16 Augmented Reality Business Models by Gary Hayes, on Flickr" href="http://www.flickr.com/photos/garyhayes/3917382293/"><img style="margin: 5px; border: 1px solid black;" src="http://farm4.static.flickr.com/3033/3917382293_d5a6928db3.jpg" alt="16 Augmented Reality Business Models" width="500" height="359" /></a></p>
<p><a title="16 Augmented Reality Business Models by Gary Hayes, on Flickr" href="http://www.flickr.com/photos/garyhayes/3917382293/"></a>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 &#8216;locative AR&#8217; and separated them into several opportunities. This is an exercise looking at the marketing or commercial &#8216;intention&#8217; 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.</p>
<blockquote>
<ol>
<li><strong>IN SITU</strong>: Aiding sale by seeing projects &amp; 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.</li>
<li><strong>UTILITY</strong>: Selling life enhancing AR applications perceived as useful. Development and commercial sale of applications such as underground train orientation, bus stops &amp; times, traffic alerts, airport gates &amp; 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 <a href="https://www.prioritymail.com/simulator.asp" target="_blank">UPS example</a> allows you to see if your &#8216;stuff&#8217; will fit the &#8216;virtual&#8217; postal boxes.</li>
<li><strong>TRAINING</strong>: Hands-on with complex equipment and work scenarios. Using &#8216;outline&#8217; 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.</li>
<li><strong>SOCIAL GAMING:</strong> 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!</li>
<li><strong>LOCATION LAYERS:</strong> 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.</li>
<li><strong>VIRTUAL DEMO</strong>: 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.</li>
<li><strong>EXPERIENTIAL EDUCATION</strong>: 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 &amp; 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.</li>
<li><strong>ENHANCED CLASSIFIEDS</strong>: An AR directory that promotes local 3rd parties product &amp; 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.</li>
<li><strong>3D VIRALS:</strong> Branded company or personal promotion &amp; ads using &#8216;cool&#8217; 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.</li>
<li><strong>PERSONALIZED SHOPPING:</strong> 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.</li>
<li><strong>COOPERATION: </strong>Service industry for augmented virtual meetings.<strong> </strong>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 &#8211; pay-per-ARmeet</li>
<li><strong>BLENDED BRANDING</strong>: 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.</li>
<li><strong>AUGMENTED EVENTS:</strong> 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.</li>
<li><strong>INTERTAINMENT:</strong> 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 &#8216;live the experience&#8217;. 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.</li>
<li><strong>UNDERSTANDING SYSTEMS:</strong> 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.</li>
<li><strong>RECOGNITION &amp; TARGETING:</strong> Pushing &#8216;relevance&#8217; to outdoor consumers &#8211; 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!</li>
</ol>
</blockquote>
<p>Some examples:</p>
<p><strong>CISCO&#8217;s future of shopping</strong></p>
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<p><strong>BMW Future of Car repairs</strong></p>
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<p><strong>Augmented Reality in Marketing and Sales</strong></p>
<p><strong><span style="font-weight: normal;"><object style="background-repeat: no-repeat; background-color: #ffffcc; background-image: url(http://www.personalizemedia.com/wp-includes/js/tinymce/plugins/media/img/flash.gif); width: 550px; height: 453px; background-position: 50% 50%; border: 1px dotted #cc0000;" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="550" height="453" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="src" value="http://www.youtube.com/v/pgett5Od3G4" /><embed style="background-repeat: no-repeat; background-color: #ffffcc; background-image: url(http://www.personalizemedia.com/wp-includes/js/tinymce/plugins/media/img/flash.gif); width: 550px; height: 453px; background-position: 50% 50%; border: 1px dotted #cc0000;" type="application/x-shockwave-flash" width="550" height="453" src="http://www.youtube.com/v/pgett5Od3G4"></embed></object></span></strong></p>
<p><strong>James Cameron&#8217;s Avatar &#8211; Augmented Reality Entertainment</strong></p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="550" height="453" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="src" value="http://www.youtube.com/v/7JWk_JIE3Ow" /><embed type="application/x-shockwave-flash" width="550" height="453" src="http://www.youtube.com/v/7JWk_JIE3Ow"></embed></object></p>
<p><strong>IKEA&#8217;s Future Augmented Reality Catalogues</strong></p>
<p><object style="background-repeat: no-repeat; background-color: #ffffcc; background-image: url(http://www.personalizemedia.com/wp-includes/js/tinymce/plugins/media/img/flash.gif); width: 550px; height: 453px; background-position: 50% 50%; border: 1px dotted #cc0000;" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="550" height="453" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="src" value="http://www.youtube.com/v/V4b4ArHZupM" /><embed style="background-repeat: no-repeat; background-color: #ffffcc; background-image: url(http://www.personalizemedia.com/wp-includes/js/tinymce/plugins/media/img/flash.gif); width: 550px; height: 453px; background-position: 50% 50%; border: 1px dotted #cc0000;" type="application/x-shockwave-flash" width="550" height="453" src="http://www.youtube.com/v/V4b4ArHZupM"></embed></object></p>
<p>To finish a few lines that describe one of my presentations coming up that acts as a nice conclusion&#8230;</p>
<blockquote><p>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 &#8216;our&#8217; 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, &#8216;in situ&#8217; hands-on demonstrations and deliver the ultimate &#8216;guide&#8217; to our complex physical world. Is AR the new 3D viral experiential marketing or another temporary fad?</p></blockquote>
<p>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 +</p>
<p><object style="width: 550px; height: 441px;" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="550" height="441" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="src" value="http://www.youtube.com/p/C98FDC9A19801C23&amp;hl=en&amp;fs=1" /><embed style="width: 550px; height: 441px;" type="application/x-shockwave-flash" width="550" height="441" src="http://www.youtube.com/p/C98FDC9A19801C23&amp;hl=en&amp;fs=1"></embed></object></p>

	<h4>Related posts</h4>
	<ul class="st-related-posts">
	<li><a href="http://www.muvedesign.com/experience-and-alternate-reality-design/" title="Experience and Alternate Reality Design (May 26, 2009)">Experience and Alternate Reality Design</a> (0)</li>
	<li><a href="http://www.muvedesign.com/can-virtual-worlds-save-tv/" title="Can Virtual Worlds Save TV ? (February 23, 2009)">Can Virtual Worlds Save TV ?</a> (1)</li>
	<li><a href="http://www.muvedesign.com/virtual-worlds-business-whats-the-roi/" title="Virtual Worlds &#038; Business: What&#8217;s The ROI? (March 11, 2009)">Virtual Worlds &#038; Business: What&#8217;s The ROI?</a> (0)</li>
</ul>

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		<title>Another Hidden ROI of Virtual Worlds &#8211; Being Green</title>
		<link>http://www.muvedesign.com/another-hidden-roi-of-virtual-worlds-being-green/</link>
		<comments>http://www.muvedesign.com/another-hidden-roi-of-virtual-worlds-being-green/#comments</comments>
		<pubDate>Tue, 10 Feb 2009 13:28:43 +0000</pubDate>
		<dc:creator>Gary</dc:creator>
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		<guid isPermaLink="false">http://www.muvedesign.com/?p=318</guid>
		<description><![CDATA[A nice presentation from Pierre-Olivier Carles, who does a good job of talking about a key ROI for companies today, saving money by being greener but also getting ethical brownie points for being greener.  He talks more about the presentation below on the blog post on Stonefield InWorld entitled  &#8216;Virtual Worlds Make Companies Greener&#8220;. The [...]]]></description>
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<p>A nice presentation from <span class="status-body"><span class="entry-content">Pierre-Olivier Carles, who does a good job of talking about a key ROI for companies today, saving money by being greener but also getting ethical brownie points for being greener.  He talks more about the presentation below on the blog post on Stonefield InWorld entitled  &#8216;<a href="http://virtual-worlds.stonfield-inworld.com/virtual-worlds-green-it/" target="_blank">Virtual Worlds Make Companies Greener</a>&#8220;. The highlight of the video for me is a very simple and clear look at doing business and life inside a virtual space. Enjoy<a rel="nofollow" href="http://twurl.nl/ujkdil" target="_blank"></a></span></span></p>
<p><object width="400" height="270" data="http://blip.tv/play/gdMG64BEh70s%2Em4v" type="application/x-shockwave-flash"><param name="src" value="http://blip.tv/play/gdMG64BEh70s%2Em4v" /><param name="allowfullscreen" value="true" /></object></p>

	<h4>Related posts</h4>
	<ul class="st-related-posts">
	<li><a href="http://www.muvedesign.com/virtual-worlds-business-whats-the-roi/" title="Virtual Worlds &#038; Business: What&#8217;s The ROI? (March 11, 2009)">Virtual Worlds &#038; Business: What&#8217;s The ROI?</a> (0)</li>
	<li><a href="http://www.muvedesign.com/the-browser-as-virtual-world-final-frontier/" title="The Browser as Virtual World Final Frontier (February 10, 2009)">The Browser as Virtual World Final Frontier</a> (0)</li>
	<li><a href="http://www.muvedesign.com/global-investment-in-virtual-worlds/" title="Global Investment in Virtual Worlds (November 5, 2008)">Global Investment in Virtual Worlds</a> (0)</li>
</ul>

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		<title>Global Investment in Virtual Worlds</title>
		<link>http://www.muvedesign.com/global-investment-in-virtual-worlds/</link>
		<comments>http://www.muvedesign.com/global-investment-in-virtual-worlds/#comments</comments>
		<pubDate>Wed, 05 Nov 2008 23:55:48 +0000</pubDate>
		<dc:creator>Gary</dc:creator>
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		<guid isPermaLink="false">http://www.muvedesign.com/?p=108</guid>
		<description><![CDATA[&#8230;and a little end of 2008 Virtual Worlds, State of Play&#8230; it has been suggested several times recently that games &#38; social virtual worlds especially will really suffer in this economic downturn and may not survive. Which leads to the point of this post to put things in a little perspective. IS THERE REAL INVESTMENT? [...]]]></description>
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<p><em>&#8230;and a little end of 2008 Virtual Worlds, State of Play&#8230;</em> it has been suggested several times recently that games &amp; social virtual worlds especially will really suffer in this economic downturn and may not survive. Which leads to the point of this post to put things in a little perspective.</p>
<p><strong>IS THERE REAL INVESTMENT? </strong></p>
<p>First lets look at investor confidence in them. From <a href="http://www.virtualworldsmanagement.com/" target="_blank">Virtual Worlds Management Reports</a> there was $1 billion US invested in 35 virtual world companies between Oct 06-07 &#8211; and since Oct 07 to the present day there has already been $918 million trusted to the success of this particular industry. This breaks down roughly as:</p>
<ul>
<li>Q3 08 &#8211; $148.5 million invested in 12 VW companies</li>
<li>Q2 08 &#8211; $161 million in 16 VW companies</li>
<li>Q1 08 &#8211; $184 million in 23 VW companies</li>
<li>Q4 07 &#8211; $425 million in 15 VW companies</li>
</ul>
<p><span id="more-108"></span></p>
<p>As a topical reference, and to put things into heritage media perspective the total spend on all <a href="http://www.environment.gov.au/minister/garrett/2008/mr20081202a.html" target="_blank">film and tv drama</a> in Australia in 07-08 was $420 million US (at current exchanges). Now the majority of these worlds invested in are youth based but many specialised ones aimed at the Gen Y hole (see kzero.co.uk charts for more info) that are focusing on key niches. These start to fill in the gaps that &#8216;generic&#8217;, jack-of-all-trades, social virtual worlds such as Second Life cannot truly cut the mustard as sub-builds inside the service. So we have recently had in the last week the to user launches of a dedicated real life buy with real cash <a href="http://virtualeshopping.com/" target="_blank">Virtual eShopping</a> just in time for XMas and what will be a real winner in my view (having just tried it finally) the social sports virtual world, <a href="http://footballsuperstars.com" target="_blank">Football Superstars</a> which combines EA-like footy with there.com-like social activity and even has a bit of WoW-like quest giving challenges.</p>
<p>The social aspect of virtual worlds are not lost on the big consoles either with the Launch of XBox and PS3 virtual worlds that <a href="http://www.personalizemedia.com/marketing-to-new-xbox-experience-and-ps3-home-avatars/" target="_blank">I covered in a recent post</a> and also the Inquirer&#8217;s article <a href="http://www.theinquirer.net/inquirer/news/641/1000641/sony-takes-microsoft-gaming" target="_blank">Sony, Microsoft begin battle of Virtual Worlds</a>. I was going to talk a lot about how during hard economic times people turn to escapist activities. In the past it used to be film or TV, but now there are many more choices and as we haven&#8217;t seen a global economic downturn of this scale since the 2nd world war &#8211; the escapism of choice is now immersive interactive media. This will not be lost on advertisers who also need to optimise their spend across the many variants of shared social worlds.</p>
<p><a title="Shared Social Worlds Diagram by Gary Hayes, on Flickr" href="http://www.flickr.com/photos/garyhayes/3060115931/"><a href="http://www.flickr.com/photos/garyhayes/3060115931/"><img class="aligncenter size-full wp-image-298" title="3060115931_2bb1e67c7b" src="http://www.muvedesign.com/wp-content/uploads/2008/11/3060115931_2bb1e67c7b.jpg" alt="3060115931_2bb1e67c7b" /></a><br />
</a></p>
<p><strong>BUSINESS WAKES UP</strong></p>
<p>Savvy businesses have now moved beyond the hype bubble of Second Life&#8217;s superficiality and realise the power of social collective collaboration. As well as education and science virtual worlds as &#8216;tools&#8217; are developing into major economic government initiatives. The Athena Alliance have released a report called &#8220;<a href="http://www.athenaalliance.org/apapers/VirtualWorldsandtheTransformationofBusiness.htm" target="_blank">Virtual Worlds and the Transformation of Business</a>&#8221; with some optimistic summary lines.</p>
<blockquote><p>&#8220;<span style="text-align: justify;">The rise of the collaborative enterprise that is likely to result from the successful deployment of Virtual World technologies will usher in a new era of business. It will change the way firms compete with one another for customers in both goods and services industries. It is our firm belief that if our nation accelerates the development and maturation of Virtual Worlds, it will encourage a more collaborative and enterprising form of business. This will lead to greater innovation, sustained productivity, and competitive growth in the world economy.. </span><span style="text-align: justify;">the companies and workers can use the tools of Virtual Worlds to transform the United States into a collaborative enterprise-driven economy.&#8221;</span></p></blockquote>
<p>The use of virtual worlds for simulation is not lost on the military either. This goes way beyond using first person shooter games to train late teens for an army life using well, first person shooter game technology in war zones. Last week the largest global simulation conference ever was held &#8220;The Interservice/Industry Training, Simulation and Education Conference (<a href="http://www.iitsec.org/" target="_blank">I/ITSEC</a>)&#8221; focused on the use of more social virtual worlds for training and education for military and scientific use. It was keynoted by General Wallace, the Commander, United States Army Training and Doctrine Command who talked with other big government players about the likely hundreds of billions of dollars that will be invested in virtual simulation technology. As we know most media developments have come about from love and death, porn and war. So this growth as always will resonate in the commercial entertainment industry. An example of how military and education are mixing here is The University of Florida recently announced too that it will be spending $1.25 million on <a href="http://news.ufl.edu/2008/10/29/second-china/" target="_blank">building a Second China</a> for the US Foreign Service and Military to understand the culture without the need to go there and fail-forward.</p>
<blockquote><p>&#8220;The goal of the federally funded research project: To educate and prepare foreign service or other government professionals to arrive in the country prepared and ready to work.&#8221;</p></blockquote>
<p><strong>SHOW ME THE VIRTUAL MONEY</strong></p>
<p>On the money side there is a great deal of research now going into how virtual world economic models and currencies will evolve from a range of closed systems to a state that may become viable alternatives to &#8216;real world&#8217; currencies. The Virtual Economy Research Network just <a href="http://virtual-economy.org/blog/reasonings_for_virtual_currenc" target="_blank">had an interesting article</a> on the VW freemium model &#8211; free-to-play but encourages the adoption of the inworld currency rapidly, for example.</p>
<p>A brief look forward and in terms of users of these worlds there is going to be a big acceleration over the next 3 years with a recent <a href="http://www.marketwatch.com/news/story/Social-Networking-Web-30-Merge/story.aspx?guid={89365C19-79F1-45D5-AB18-146100B7B0B7}" target="_self">Instat report</a> suggesting that &#8220;registered users of virtual worlds are expected to exceed 1          billion&#8221; by 2012 and total revenue is expected to exceed US $3 billion. The majority of this revenue is not from an expected subscription or advertising but &#8220;90% of their revenue from the          sale of virtual items, currency, land, and fees associated with these          items&#8221;. Finally a reason why there is even more investment in youth worlds &#8220;70% of the more than 300 million registered users of virtual worlds          are younger than 18.&#8221;</p>
<p>Forester and <a href="http://www.millionsofus.com" target="_blank">MillionsOfUs</a> have just <a href="http://www.prweb.com/releases/2008/12/prweb1692204.htm" target="_blank">published a report</a> looking at how traditional corporate business will begin to flourish in these spaces and to quote their executive four point summary:</p>
<ol>
<li><strong>It grants unprecedented depth of engagement with consumers.</strong> Second only to inperson<br />
consumer meetings, virtual worlds allow marketers to get up close and personal<br />
with individual consumers. Using these interactions to allow for feedback, creative tasks,<br />
and just plain fun creates brand and product advocates in the user base who go far beyond<br />
in-world influence.</li>
<li><strong>It taps into an audience that is difficult to reach via other channels.</strong> Today’s virtual<br />
world users are seen as a minority vanguard for future usage, but they are also difficult to<br />
reach via other channels. This is especially true of youth groups and deeply creative<br />
communities supported by various virtual worlds.</li>
<li>N<strong>ewer worlds offer better opportunities for cross-channel tracking and more<br />
targeted audiences.</strong> Early virtual worlds, while technically groundbreaking and providing<br />
the necessary foundation for future worlds, often lacked audience-tracking tools and were<br />
open playgrounds without a specific purpose. New, recently launched worlds or those just<br />
around the corner will offer better tools for customer tracking and tend to target gamers,<br />
youth, conversation, or other specific tasks, rather than just being open. This allows better<br />
brand alignment and campaign integration.</li>
<li><strong>Virtual merchandizing resonates with youth — and can be very cost-effective. </strong>Virtual<br />
items and other digital assets resonate with Gen Y consumers far more than with older<br />
(physical-media-loving) consumers. They appreciate novel, unique items and accept brand<br />
involvement in these items and their distribution — provided it has been thought through.<br />
Needless to say, the creation, storage, and distribution of virtual items can be very costeffective<br />
compared with traditional merchandise like t-shirts and caps.</li>
</ol>
<p>There is no decline happening. So journos, nay sayers, please look at your own industries please. To reiterate the above examples are social or simulation virtual worlds and there are around 78 currently being used by 360 million people. I haven&#8217;t touched on online game worlds or offline games which starts to turn the whole affair into a $40-50 billion industry overtaking movies (including home entertainment elements too). All suggestions are that VWs and Games will be the dominant entertainment form and a widely used tool for business and education and revenues will start to match that of the $300 billion TV industry within five years time. A big issue for me is the lack or real courses in higher education in this space too. Most training is on how to use software to make fps console-type games, there needs to be a paradigm shift otherwise media education will be irrelevant as the heritage media linear form falls into the background.</p>
<p><a title="Broome Australia, Sun Pictures 2008_21 by Gary Hayes, on Flickr" href="http://www.flickr.com/photos/garyhayes/3092829876/"><img src="http://farm4.static.flickr.com/3103/3092829876_3232b940c1.jpg" alt="Broome Australia, Sun Pictures 2008_21" width="500" height="376" /></a></p>
<p>Now tell me again that these wacky 3D worlds are about to disappear?</p>
<p>To finish I will be adding a presentation I gave at the Online Distribution and Business Collaboration Conference two weeks ago as it contains many references to the above post&#8230;hold your breath&#8230;</p>
<div id="__ss_838240" style="width: 425px; text-align: left;"><a style="font:14px Helvetica,Arial,Sans-serif;display:block;margin:12px 0 3px 0;text-decoration:underline;" title="Future InGame Advertising &amp; Social 3D Worlds Marketing" href="http://www.slideshare.net/hayesg31/future-ingame-advertising-social-3d-worlds-marketing-presentation?type=powerpoint">Future InGame Advertising &amp; Social 3D Worlds Marketing</a><object width="425" height="355" data="http://static.slideshare.net/swf/ssplayer2.swf?doc=ingameadvertising-1229001409895185-1&amp;stripped_title=future-ingame-advertising-social-3d-worlds-marketing-presentation" type="application/x-shockwave-flash"><param name="allowFullScreen" value="true" /><param name="allowScriptAccess" value="always" /><param name="src" value="http://static.slideshare.net/swf/ssplayer2.swf?doc=ingameadvertising-1229001409895185-1&amp;stripped_title=future-ingame-advertising-social-3d-worlds-marketing-presentation" /><param name="allowfullscreen" value="true" /></object></p>
<div style="font-size: 11px; font-family: tahoma,arial; height: 26px; padding-top: 2px;">View SlideShare <a style="text-decoration:underline;" title="View Future InGame Advertising &amp; Social 3D Worlds Marketing on SlideShare" href="http://www.slideshare.net/hayesg31/future-ingame-advertising-social-3d-worlds-marketing-presentation?type=powerpoint">presentation</a> or <a style="text-decoration:underline;" href="http://www.slideshare.net/upload?type=powerpoint">Upload</a> your own. (tags: <a style="text-decoration:underline;" href="http://slideshare.net/tag/business">business</a> <a style="text-decoration:underline;" href="http://slideshare.net/tag/social">social</a>)</div>
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	<h4>Related posts</h4>
	<ul class="st-related-posts">
	<li><a href="http://www.muvedesign.com/can-virtual-worlds-save-tv/" title="Can Virtual Worlds Save TV ? (February 23, 2009)">Can Virtual Worlds Save TV ?</a> (1)</li>
	<li><a href="http://www.muvedesign.com/virtual-worlds-business-whats-the-roi/" title="Virtual Worlds &#038; Business: What&#8217;s The ROI? (March 11, 2009)">Virtual Worlds &#038; Business: What&#8217;s The ROI?</a> (0)</li>
	<li><a href="http://www.muvedesign.com/talk-transcript-opportunities-in-disruptive-3d-social-worlds/" title="Talk Transcript: Opportunities in Disruptive 3D Social Worlds (May 12, 2007)">Talk Transcript: Opportunities in Disruptive 3D Social Worlds</a> (0)</li>
</ul>

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		<title>How Companies Can Be Social in Virtual Worlds</title>
		<link>http://www.muvedesign.com/how-companies-can-be-social-in-virtual-worlds/</link>
		<comments>http://www.muvedesign.com/how-companies-can-be-social-in-virtual-worlds/#comments</comments>
		<pubDate>Thu, 03 Jan 2008 23:30:08 +0000</pubDate>
		<dc:creator>Gary</dc:creator>
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		<description><![CDATA[. Virtual Worlds Necessitate Corporations Develop Personality followed by Gary&#8217;s top 15 tips to becoming human in the metaverse (and 2D socio-nets). I have been doing a lot of work moving brands, properties and companies into Second Life recently and in the process I am often forcibly reminded of the divide that naturally exists, in [...]]]></description>
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<p>.<br />
<strong>Virtual Worlds Necessitate Corporations Develop Personality followed by Gary&#8217;s top 15 tips to becoming human in the metaverse (and 2D socio-nets).</strong></p>
<p>I have been doing a lot of work moving brands, properties and companies into Second Life recently and in the process I am often forcibly reminded of the divide that naturally exists, in these new worlds, between &#8216;the corporation&#8217; on one hand and &#8216;the individual/community&#8217; on the other. The 3D Virtual World is being used in many ways by the natives (aka the public, a bad definition I know), living out their fantasies in a very chaotic but social way. In strong contrast to that we have companies who are naturally bland, characterless, faceless and in the worse cases anti-social.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/apparel.jpg" alt="American Apparel" width="406" height="302" /></p>
<p>It is not all bad as we are seeing something very positive emerging and being played out as both sides manouver and become better aligned. We are also seeing the next phase as the early mistakes pull out and leave the new entrants to learn from those errors. So I have collected some of my thoughts below on how companies need to approach the development of their personality.</p>
<p><span id="more-86"></span></p>
<p>First though let me explain the title of this piece with two simple examples. I was struck, like many by the documentary film &#8216;<a href="http://www.thecorporation.com/">The Corporation</a>&#8216; which began by explaining at great lengths how similar the actions of large organisations (if they were looked at as an individual) are psychopathic in nature. I quote the definition they use as the basis to extemporize and a taste of that from Mr Monks.:</p>
<blockquote><p>PERSONALITY DIAGNOSTIC CHECKLIST:<br />
World Health Organization ICD-10. Manual of Mental Disorders DSM-IV<br />
- Incapacity to maintain enduring relationships<br />
- Deceitfulness: repeated lying and conning others for profit<br />
- Incapacity to experience guilt<br />
- Failure to conform to social norms with respect to lawful behavior<br />
- Callous unconcern for the feelings of others<br />
snip&#8230;</p></blockquote>
<blockquote><p>&#8220;A corporation is an externalizing machine in the same way that a shark is a killing machine. Each one is designed in a very efficient way, to accomplish particular objectives. In the achievement of those objectives, there isn’t any question of malevolence or of will, the enterprise has within it, and the shark has within it, those characteristics that enable it to do that for which it was designed.&#8221; Robert Monks, Corporate governance advisor</p></blockquote>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/mac-pc.jpg" alt="Mac Pc" /></p>
<p>Of course I am being deliberately provocative in stating this but in the context of an immersive fully rendered world there is a high degree of potential for levels of the above to continue unabated. If a slightly anachistic documentary is not to your taste then the second one will hopefully clarify. &#8220;Hello I&#8217;m a Mac and I&#8217;m a PC&#8221; &#8211; or translated &#8220;Hello I&#8217;m Apple and I&#8217;m Microsoft (Windows)&#8221;. We all know what that series of ads is really saying and it leads into the main part of my post nicely. The PC character in those ads represents dysfunctionality (mild pyschopathy), corporate stubborness, overweight, bad eyes and old school &#8216;tech&#8217; thinking, whereas the cool Apple dude represents the opposites &#8211; friendly, balanced, youthful, innovative and even understanding of PC. Those ads are great fun but they become very serious for the corporations when you start to consider the inhabitants partying in Virtual Worlds deciding which one would to hang-out with. Commercial organisations need to have character and an indentifiable personality in the metaverse and cannot rely anymore on corporate slickness, blandness or aloofness. To engage with audiences and inhabitants in these spaces they need to learn how to be human.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/pond02.jpg" alt="BigPond SL" /></p>
<p>So I have collected for all those corporations out there wondering how to accepted in the 3D and for that matter the 2D social network, my top tips for those thinking of jumping in or those who are wondering why things are not going right.</p>
<p><strong>One: Understand the Culture by Spending Time There</strong><br />
Make sure you have people who know the culture of the world and who have spent enough quality time inworld across the whole gamut of experience. Do not rely on reports from tourist consultants, so-called emerging media experts who can see an opportunity and sell themselves as folk who know about the world and who may have set up an account and visited it on a few odd occasions. Ask them how long per week they personally use the social network. If it is 10-20 hours then keep talking, if they pop in for 10 minutes a day when they are not busy or taking the kids to school then give them a miss &#8211; you will get better advice by going inworld yourself and talking to experienced inhabitants. Also make sure the people who you employ to represent you inworld are extremely familiar not just with the local space they will be hanging around in but the whole social world. Make sure they have a passion for it and are not being forced to go in there &#8211; so they can talk to inhabitants about other spaces from experience. This will engender trust and more importantly friendship.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/lword.jpg" alt="L Word" /></p>
<p><strong>Two: Be A Part of the Conversation</strong><br />
It goes without saying that you have to be in it to really be in it. Corps can&#8217;t sit on the sidelines or be the obligatory wall flower, spying on others at the party. They have to be in there talking, befriending and listening. Just being present is not enough to integrate properly. I have seen many companies entering a space who don&#8217;t join or setup groups, never go to other events and meet others which is odd given this is a social network &#8211; no different to those dive bar, industry get-togethers in the real world. Finding someone who is passionate in your organisation and who can then commit time is the only way to go. Don&#8217;t become the officious big brother, watch-dog. With the advent of voice in Second Life new factors come into play of course. Your company representatives are in there having real time phone conferencing in effect with anyone and everyone who decides to drop in. Think carefully about the things you need to say vs those that will endear you to the community. It makes a lot more sense to talk about the shared experience than saying how wonderful your company is. Organise specific events where you will be expected to talk about the brand vs trying to constantly slip it into social discussion.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/reuters.jpg" alt="Reuters" /></p>
<p><strong>Three: You Are What Your Environment IS </strong><br />
Just as we can tell an individual from the places they visit or the state of their work and social rooms, the same holds true of companies. Your corporate personality is reflected in the spaces you build. If you look at the native environments vs the corporate ones in the metaverse you can see a world of difference. The commercial ones are often built by a team which has been steered by many, many meetings that have sand-papered away all the risk and character. They end up being designed by committee and as such are not resonant with anyone &#8211; apart from the corporate lawyers who can only see &#8216;safe&#8217;. Whereas an organic, rich, deep welcoming space has the opposite effect. I have talked for two years about over representation too. If you build a clone of your office, complex or city you are stating two things &#8211; 1) corporate vanity and 2) lack of innovation. You should take a certain level of risk by creating environments that engage before they try to impress or show business control.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/nbc.jpg" alt="NBC" /></p>
<p><strong>Four: Corporate Avatars Need to have Character</strong><br />
This is a critical point in how to be human in these spaces. Have avatars that have a personality, meaning make sure the person on the other side of the avatar is not some bland company customer relations person who can only talk about the business parrot style. This is the opportunity for your company to really shine and show a different side to herself. Oh yes the lawyers will be screaming &#8216;disclaimer&#8217; from the rooftops. Well fine go for it and to be literal, have a permanent sign on your t-shirt with the obligatory &#8220;the views I express are mine and not that of&#8230;&#8221; and so on &#8211; not suggesting you do that precisely, but you get the point. A community will only start to connect when &#8216;company&#8217; characters are present. Think of the Virgin empire. They shout personality, that youthful exuberance, those Branson clones &#8211; allowing the person inside to come out. They are sadly let down by having to wear the uniform but in these environments you don&#8217;t have to be the photo-realistic clone of your real self. Do what the natives do and be imaginative with your representation and the words you deliver.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/aol.jpg" alt="AOL" /></p>
<p><strong>Five: Listen, Listen, Listen and Respond</strong><br />
Corporations find it hard to respond because anything of significance has to be rubber stamped by people that all too often have no idea what it really means. &#8220;All the inhabitants want SkyDiving competitions every Sunday&#8221; &#8211; passed to the lawyers who spend weeks working out the liability aspects of that, what if someone gets injured can they sue &#8211; until someone chirps up &#8220;actually no one can be harmed&#8221; and even then they look into psychological torture. By this time the residents are already running competitions on their own land or with a more responsive competitor. Another aspect of listening is not pushing. Too many corporations think that if they blog or stand in the crowd and talk then they are mixing with the web 2-3 communty. They are not &#8211; they are pushing it one way and unable to listen to the replies and respond. They become an incarnation of traditional broadcast media. A simple rule here &#8211; Do Not Talk in the Community Unless you have the Mechanisms to Respond. Sadly so many corporations just don&#8217;t respond to suggestions or in the worst cases do not even acknowledge. This is the most disenfranchising thing there is for someone who is starting to want to make things better, to be ignored by the administrators. This requires some sensitivity at the admin level, which is often lacking if they are hired help or jaded managers.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/pontiac02.jpg" alt="Pontiac" /></p>
<p><strong>Six: Rich Kids Shouldn&#8217;t Copy</strong><br />
Every &#8216;expert&#8217; in marketing in Second Life say bring something of value to the community &#8211; which can only be defined if you know the world. It may already be there. But even more important is to bring relevance and something new. It is OK initially showing off like the rich kid with some wonderful interactive toys you have bought or giving lots of &#8216;branded&#8217; things away but you need to go way beyond that. Do something completely different and potentially on a grand scale. The advantage you as the corporation have over the natives is that you really are the rich kid on the block. So don&#8217;t set up a tiny cool drinks dispenser, or a shop sized office or a beach resort &#8211; be bold and consider multiple islands that offer rich immersive experiences (<a href="http://www.personalizemedia.com/index.php/2006/06/02/immersion-ambient-tv-addictive-mmorpg/">see previous post on this</a>). You can still be rich and relate to the community &#8211; give them places to tell new stories. Too many times I hear &#8220;Oh yes the new CorpX sim is OK, the usual shops, club, offices but bit boring and here is the baseball cap &#8211; detach&#8221;. Offer things that fit with your brand but doesn&#8217;t contradict it &#8211; become almost like a friendly, approachable benefactor. Also be wary of just buying things that many may have experienced already. Plagiarism is rife in social virtual worlds because of the scale, most people are not expected to get around that much so there is a certain complacency that corporations think that as they are bigger than the others kids, they can &#8216;nick&#8217; the idea. The community is very sensitive to this. Corporations without imagination are just rich kids, not imaginative rich kids.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/dell.jpg" alt="Dell" /></p>
<p><strong>Seven: Be Consistent and Beware of Real World Journalism</strong><br />
Authenticity is about being consistent and not schizophrenic. You will find it hard to survive if you are having conversations in these social networks as one persona then in the real world a journalist requests an interview in which you talk about the community as folk to be manipulated. Most Second Life journalists understand this and will often do interviews inworld, the ones to be aware of are the attention seeking real world journalists who are after something sensationalist to prop up their dwindling traffic rating. Most of these haven&#8217;t the slightest idea about integrating into social networks (apart from their own) and will not print anything to do with &#8216;Corporation Working Well with Community&#8217; stories &#8211; they want &#8216;Community Griefers Attack Corporation&#8217; ones, they sell. Keep well away from that kind of fiction.</p>
<p>But consistency of persona is hard to do across the many social networks as many are abstract (in other words, the 2D, non-real time facebook are a series of panes that supposedly make up who you are) &#8211; in the metaverse it is extremely close to real life. What you say, do and who you relate to give real time feedback to those around about who you really are &#8211; corporate robot or passionate person. Inhabitants like to come back to places where the &#8216;general&#8217; experience is known. If they enjoyed it once when they come back they don&#8217;t want a different character in charge who is dull or uninterested in them. This requires great effort on the part of the corporation to set a style of interaction with its visitors which must be kept consistent.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/abc.jpg" alt="ABC" /></p>
<p><strong>Eight: Do What the Natives Want</strong><br />
Social Virtual Worlds like Second Life and Sony Home are mostly about shopping, media based activities, lifestyle emulation and socialising. As a corporation or brand sitting on top of, or rather inside an existing companies infrastructure you need to be careful to not do what everyone is already doing. There is an attraction in setting up an environment and then setup rental land for homes and shops because that is what inhabitants seem to want. But that says more about the social network than you bringing something to it. It also pangs a little of laziness and doing something tried and tested. The natives also love to make things (well 30% in Second Life) so be really active in encouraging and rewarding that. Get them to design and build your branded play area with you.<br />
<img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/ericcson.jpg" alt="Ericsson" /></p>
<p><strong>Nine: Keep Reinventing Yourself and be Fresh</strong><br />
Remain consistent in character but always have new things happening to show how dynamic you are. Don&#8217;t limit it to dances, music concerts or presentations (in SL you can get these everywhere) but go down to the level of environmental decoration, the signs, subtle changes to the spaces and tell people about those changes. But the  most critical element of being dynamic is to listen to suggestions from your visitors, do changes on the spot and even do personal fit outs for the loyal inhabitants of your space. Many organisations fail in Second Life by launching with something which then sits there and decays (with no updates). People get bored with people that don&#8217;t change and will drift away for new pastures. Invite suggestions for change but always have the resources within your organisation and with your developers (who will often know a lot more than you &#8211; having time to spend inworld) to do regular facelifts.</p>
<p><strong>Ten: Share Your Assets and The Paradox of Risk Aversion</strong><br />
Inhabitants of your space will feel more inclined to stay if you provide them with some chance to own parts of it through the opportunity to affect it. Think of this as the rich kid who invites the world onto their mansion grounds for a party. Do not be the party host that goes around sweeping up every time someone drops a few crumbs, they will not return. Instead accept a certain amount of chaos and allow them to influence and have a sense of ownership. You will get more respect for empowering them and allowing an element of free reign. But so many companies are terrified of ending up with egg on their face through griefing or being sued for some copyright infringement that they lock everything down. This just says you as an individual are controlled by lawyers, who cannot express their own mind who as we know are the worst folks to have in any social group.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/aol02.jpg" alt="AOL Skate" /></p>
<p><strong>Eleven: Don&#8217;t Always Try to Be the Centre of Attention</strong><br />
Companies that expect their &#8216;characters&#8217; to be in control and always leading the conversation will be seen as anything from show off through to bully. Social networks are democratic, your brand is as important to the inhabitants as their own identity or groups they belong to. Do not metaphorically walk into a crowd and pronounce your self-imposed importance, this jars with the whole premise of social networks.</p>
<p><strong>Twelve: Story Environments</strong><br />
By all means create spaces that are really great to hang out in for long periods of time but also try to give the place some history and depth. When your not around you need the evnironment to speak for you by speaking, literally in some cases, with the visitors. So embed or write some history into it, create some myth, make it feel like you have been around for a bit. This depth is attractive to those visiting. See my wikipedia article on this topic <a href="http://en.wikipedia.org/wiki/Story_Environment">here</a> which covers ways you can give yourself (represented by the environment) some back story and depth.</p>
<p><strong>Thirteen: Help create a Trusted Community</strong><br />
If you have followed some of the above advice then you will start to become the space to be, full of character, innovation and depth. As the traffic increases you just wont be able to manage it all by yourself and tensions can result. It is not a bad thing for the company characters to fly off the handle occasionally because of being over stretched with requests, endless IMs and so on &#8211; it shows they are human. But this is also a warning sign to start to create tiers of help within the community, namely the most loyal and immersed inhabitants themselves. Give them limited powers but ones that has enough responsibility to make them feel empowered. Set rules up for them that are part of a discussion as to the best ways to operate. If they make mistakes do not slap their wrists, change the framework of how they can operate. Of course the lawyers kick in again here with non-employee representatives (many of whom may not be know in the real world) &#8211; but again that wonderful disclaimer can be pulled out of the hat. To think you can manage without community support at admin levels means you will be over stretched as a person corporation, become stressed and in the end find it more comfortable to not be in there in the first place &#8211; contrary to all the above.</p>
<p><img src="http://www.personalizemedia.com/wp-content/uploads/2007/09/pond.jpg" alt="Billabong Bar" /></p>
<p><strong>Fourteen: Entertain</strong><br />
It is fine being a wonderful administrator and organiser but you will be looked on to provide entertainment sometimes. You can&#8217;t expect your community to just do it all the time. You need to step in on a regular basis to show that you can put on big events. This encourages the relationship and more importantly suggestions as to how to make the events and activities better or develop new ones.</p>
<p><strong>Fifteen: Don&#8217;t Listen to Too Much Advice</strong><br />
I would recommend listening to advice from trusted developers who have a track record for creating really good social spaces and not listening to out of world consultants. But in the end go with your gut reaction based on your personal experiences about what you think fulfills the needs of existing inhabitants in these 3D social networks. Having a genuine approach will most likely create a genuine response from your potential community. Remember though at the start you are a tourist and as such not doing anything until you are ready makes the most sense.</p>
<p>Gary Hayes is the Head of Virtual Worlds for the <a href="http://www.theprojectfactory.com/">Project Factory</a> and Director of the Laboratory for Advanced Media Production, <a href="http://www.lamp.edu.au">LAMP</a>. He personally produced and built the top brand in SL Telstra&#8217;s &#8216;The Pond&#8217; and ABC TV (top ten) in several statistics (<a href="http://nwn.blogs.com/nwn/2007/08/taterus-mixed-3.html">New World Notes</a> and <a href="http://www.theprojectfactory.com/images/stories/TPFStats070827.jpg">TPF</a>) over the past 6 months. Recent other launches include <a href="http://www.thursdaysfictions.com/ThursdaysFictionsInSecondLifeMediaReleasethursdaysFictionsInSecondLife_533_n_3_0.html">Thursday&#8217;s Fictions</a> and <a href="http://www.secondlifeinsider.com/2007/10/04/melbourne-laneways-comes-to-life-at-abc-island/">Melbourne Laneways.</a></p>
<p>Posted by Gary Hayes © 2007 All Rights Reserved.</p>

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