1. At the TV Show Australia next week he is presenting about Social Television now and in the near future and how Inspiring the stories of tomorrow with social mediawill make TV truly and finally interactive
   

   Santa Clara Convention Center

2. In Santa Clara, CA he is opening the business track by presenting New Augmented Reality Business Models at the worlds biggest Augmented Reality Conference known as the Event
3. And in June Gary is presenting at GameTech on Pervasive Entertainment and the exciting merging of Games, Film/TV, Geo-Caching and Social Media

Gary is also presenting at various adhoc conferences such as Creative Sydney here where he is MC’ing & presenting on various Transmedia & Multi-Platform Content sessions.

More details on each of these below and if you want to speak to us about how MUVEDesign can help you realise your projects in these areas look at our service area and contact us here.

‘Multi-Platform’ TV Show

Australia 2011 27-29 Apr Sydney

Day 2  2.10pm Inspiring the stories of tomorrow with social media

The Augmented Reality Event 2011

May 17-18 Santa Clara, CA, USA

The Augmented Reality Event 2011 will feature industry luminaries: Bruce Sterling, Vernor Vinge, Will Wright, and Blaise Aguera y Arcas. ARE 2011 will include more than 100(!) speakers in 30 sessions organized into 3 tracks: business, technology & programming, and production & design.

The 2 day event will feature more than 33 hours of talks running the gamut of AR essentials in 3 tracks: Business, Technology and Production:

1. Business – For executives of established and start-up AR companies, as well as mobile hardware companies – in search of business models and promising verticals for AR;  a venue to form partnerships, learn about latest innovations, and most importantly speak with clients.
2. Technology – For Developers, programmers and technologists seeking the latest and greatest engines and tools for AR; learn from case studies and post mortems delivered by experienced developers from the leading companies in the space.
3. Production – For Producers, designers, project managers (in gaming companies, agencies, marketers, brands, and artists) hungry for proven techniques to leverage augmented reality to advance your brand, attract and keep your customers, and build successful campaigns and products that will delight users.

Day One – Tuesday 17-May-2011

• 8:15-9:00 am ARE 2011 Press Conference  Moderated by Ryan Wagner Great America XK – First Floor. Opportunity for AR companies to announce new products with major tech media
• 9:00-9:45 am Keynote: Bruce Sterling Wired Main Theater
• 10:00-11:00 am AR Market: Today and Tomorrow Business Track  (Great America J – First Floor)
  • Gary Hayes (MUVEDesign)- New AR Business Models
  • Laurel Papworth (Community Crew) – Building Mobile AR Social Communities for Business

GameTech

21-22 June 2011 Sydney

Video games and interactive entertainment has come of age, and it’s serious business. Games have emerged as the pinnacle of consumer entertainment. The interactive entertainment industry is now faced with unprecedented popularity, unparalleled growth and significant opportunity.

“The global video gaming market is expected to grow at a CAG Rate of 8.9% to reach $76.1bn in 2013”*

The benefits of this are not just restricted to the video game developers and publishers- all areas of the value chain and the wider industry arereaping the rewards of this growth opportunity. As users are shifting towards new platforms developers and publishers are changing their business models to wrestle for market share.

• Gametech is a 2-day conference blitz of learning, inspiration, solutions, and networking. It is the most comprehensive event on games and interactive entertainment in the region, and will provide an unparalleled event experience.
• Gametech is for those who wish to benefit from the explosive growth in video gaming. Whether you are part of the industry value chain or whether you are considering interactive entertainment as a tool for your business.
• Gametech features visionary presentations, insightful case studies, lively debate and expert information on timely cutting-edge business topics of interactive entertainment and gaining from video gaming technology.

Gary’s is presenting on key areas of Merged Media and how Gamification is acritical component of all multi-platform content forms

1355 – Pervasive Entertainment – Games, Film, Music, Print & TV merging with audience networks

• Assessing the concept of Pervasive Entertainment and how it is affecting the games industry
• How are brands extending to transmedia?
• Reviewing the business models behind geo-social / augmented reality games
• Learning form relevant case studies
• What models of media production, distribution, and consumption are implied by these future
• visions of entertainment?

Gary Hayes, Director MUVEDesign & Founder StoryLabs

ROUNDTABLE 15.10 - Unleash the Power of Interactive Entertainment – Diversifying Your Product Offering with Video Games

• How has the appeal of video games widened to new audiences?
• Underlying the process of developing games to compliment existing products
• Is there a limit as to the nature of business capable of benefiting from games
• Finding the right monetization model to support a standalone games product
• Key ingredients for successful games for social media platforms
• How can games and interactive entertainment incorporate features such as user-generated content, sharing, rewards and referral programs?
• Key steps to monetize new social gaming environments?

Sam Doust Creative Director, Strategic Development
 ABC

David Peattie Managing Director
 Hasbro

Hugh Baldwin Director of Television and Content Acquisitions 
Nickelodeon, MTV

Gary Hayes Director MUVEDesign & Founder 
StoryLabs

Augmented Reality – A Showcase What The Marketers Need To Know – October 28th 5:40pm – 6:30pm

“Is AR just like a lift-the-flap book?”
What value can AR offer for people and enterprises?
The session outlines various definitions of AR such as location based platform or image recognition platform and how the technology provides valuable insight for marketing. Exploring various case studies, we will discuss the current situations and issues for AR as well as its future.

Gary will be showing several of his Augmented Reality branding overview videos such as the recent Recognition – Business Opportunities but also one of three Location Based Augmented Reality Story developments in this space  called ‘Time Treasure” – a rudimentary, story rich LBARG (location based AR game?!) that MUVEDesign are currently story designing & coding for Android tablets. A hort 2 minute taster video embedded below…

Without giving the plot away, the structure of this game is quite straightforward. There are ten layers of time from 2050 back to 5000BC that you slowly penetrate following stories, clues and trails all based at POIs (points of interest, precise locations) around your city. The traditional MMOG talking-head quest and story givers are a unique part of this as well as a range of capture & loot quests that require you in some cases to do a little ‘real world’ grinding… ok not too much For me the challenge as always is about creating strong ‘call to actions’ and constructing a narrative backbone to make it worth your while walking and in some cases running around town! I will do a post when this reaches a full working pilot.

We will keep you updated in the next months of progress on this and the branded client games also in progress.

APPLE SDK

We are registered iOS 4.1 developers with several apps coming out via the App store soon. We can also place paid apps through onto the store for clients

ANDROID SDK

We are part of the Android development community and can develop applications for android tablets and mobile devices and distribute into the Android market for clients

GEO LOCATION DEVELOPMENT

MUVEDesign are registered developers on both the Layar and Junaio location based browsers that work on Android and iPhad platforms. We can also develop Junaio Glue, marker or pattern based recognition

MARKER & IMAGE RECOGNITION AUGMENTED REALITY

We can develop simple AR marker webcam services using the industry standard Flash AR toolkit or utilise some of the latest technology such as Qualcomm’s Augmented Reality SDK which we are beta registered for

GAMES AND VIRTUAL WORLDS AND SOCIAL MEDIA

MUVEDesign can naturally build a range of social media sites such as WordPress/BuddyPress networks, Drupal or Joomla installs and is well known already as a key Second Life developer but also can create standalone games using software such as Unity – for iPhone, Web, Standalone Mac & PC and even Wii games.

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 +

We have come a long way since cardboard cutout VRML back in the 90s. It is interesting to watch a revolution take place at the moment in Mixed & Augmented Reality and one particular subset, augmented reality. Gary produced a compilation in 2008 of various AR and MR area in this short video (at the bottom of this post you will find a transcript)

Another exciting area of AR is emergent game play. This example from a Japanese company called Geisha Tokyo Entertainment is your very own augmented reality Geisha Girl. It is interesting watching a story develop so imagine the potential now for story tellers or performers who can give their ‘participant’ audience the tools to bring the storyworld out into their personal space. I think in advance of the oft mentioned ’surround-o-film’ (yes holograms of Bond jumping around you in your front room, god help us!) this is a simple and elegant solution – given we all have webcams built into laptops, games consoles, mobiles etc etc: With this particular package you get two cubes and two sticks but imagine a cube for a range of characters or sets for your latest film or kids TV show, perhaps available as a premium.

Finally the combination of Augmented Reality and Social Media is probably the most obvious and compelling near term offering. Being able to layer the rich social web over the top of the real world adds real value. This video speaks for itself.

Below is the slightly futuristic transcript from my video compilation above, for those who can’t hear the narration. (BTW a better audio version available as a 50MB download here). Attribution for most clips appear in this post.

Is this reality? Is this fantasy? In 2008 the great transition truly began. Whereas a decade earlier we used to ‘log in’ to cyberspace, now we began to semi-permanently inhabit virtual space and the digital world started to leak out into everyday life. It began to infiltrate our shopping malls and became integrated with our everyday lives. Humanity started the relentless journey towards the natural future where virtuality became a greater reality,  and where digital fantasy and organic reality were inextricably intertwined.

Through the early 2000s pervasive wearable computing started to break down the walls that used to separate our virtual existence from our physical one. This same technology also allowed us to embed ourselves seamlessly into virtual worlds which is where we could truly experiment with future forms of entertainment, art, education and business.

In these new places we became the real time, living celebrity. Many of us became avatar stars, pixel gods – exalted as those linear film and TV icons. This became the only place for many. By 2007 hardcore gamers were already spending fifty five hours per week ‘inside’ these shared worlds and learned to forgot about the real world. This became the place where their most meaningful hours were spent. Everyone began to blend the two domains, combining them in new ways, driven by an invisible urge. Thus started the global meshing, of today’s mixed reality.

But in 2009 questions were asked. As in the many films that hinted at our transhumanist future, would the physical embodied self ever become redundant? Would we truly evolve as self contained, digital entities? May we as well be slumped in a chair with a cable plugged into our heads? Regardless, as the real world became inhospitable we all started to crave for the immersion and began moving our physical selves into these spaces. Even more than that we wanted our peers our un-virtual audiences to be able to share our experiences there. It became a contagious as the most poignant moments and memories were the ones in virtual space.

But we needed to look beyond these screens and into our own souls. Find the truth written along the ‘thin white line’ that separates analog from digital, person from avatar. This was the beginning. It always was. As far as the meshing or blending of reality and virtuality, in 2009 they were the equivalent of grainy black and white movies seventy years earlier. Our experiences were simultaneously part real, part virtual but it didn’t matter which was which anymore. Both were valid and they depended on each other. Those early parallel existences of twenty years ago started to move humanity forward, released our imaginations and we coexisted with our precious and ultimately fragile, physical selves. The great crossing had begun.

IS THERE REAL INVESTMENT?

First lets look at investor confidence in them. From Virtual Worlds Management Reports there was $1 billion US invested in 35 virtual world companies between Oct 06-07 – 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:

• Q3 08 – $148.5 million invested in 12 VW companies
• Q2 08 – $161 million in 16 VW companies
• Q1 08 – $184 million in 23 VW companies
• Q4 07 – $425 million in 15 VW companies

As a topical reference, and to put things into heritage media perspective the total spend on all film and tv drama 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 ‘generic’, 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 Virtual eShopping 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, Football Superstars which combines EA-like footy with there.com-like social activity and even has a bit of WoW-like quest giving challenges.

The social aspect of virtual worlds are not lost on the big consoles either with the Launch of XBox and PS3 virtual worlds that I covered in a recent post and also the Inquirer’s article Sony, Microsoft begin battle of Virtual Worlds. 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’t seen a global economic downturn of this scale since the 2nd world war – 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.

BUSINESS WAKES UP

Savvy businesses have now moved beyond the hype bubble of Second Life’s superficiality and realise the power of social collective collaboration. As well as education and science virtual worlds as ‘tools’ are developing into major economic government initiatives. The Athena Alliance have released a report called “Virtual Worlds and the Transformation of Business” with some optimistic summary lines.

“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.. the companies and workers can use the tools of Virtual Worlds to transform the United States into a collaborative enterprise-driven economy.”

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 “The Interservice/Industry Training, Simulation and Education Conference (I/ITSEC)” 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 building a Second China for the US Foreign Service and Military to understand the culture without the need to go there and fail-forward.

“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.”

SHOW ME THE VIRTUAL MONEY

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 ‘real world’ currencies. The Virtual Economy Research Network just had an interesting article on the VW freemium model – free-to-play but encourages the adoption of the inworld currency rapidly, for example.

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 Instat report suggesting that “registered users of virtual worlds are expected to exceed 1 billion” 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 “90% of their revenue from the sale of virtual items, currency, land, and fees associated with these items”. Finally a reason why there is even more investment in youth worlds “70% of the more than 300 million registered users of virtual worlds are younger than 18.”

Forester and MillionsOfUs have just published a report looking at how traditional corporate business will begin to flourish in these spaces and to quote their executive four point summary:

1. It grants unprecedented depth of engagement with consumers. Second only to inperson
   consumer meetings, virtual worlds allow marketers to get up close and personal
   with individual consumers. Using these interactions to allow for feedback, creative tasks,
   and just plain fun creates brand and product advocates in the user base who go far beyond
   in-world influence.
2. It taps into an audience that is difficult to reach via other channels. Today’s virtual
   world users are seen as a minority vanguard for future usage, but they are also difficult to
   reach via other channels. This is especially true of youth groups and deeply creative
   communities supported by various virtual worlds.
3. Newer worlds offer better opportunities for cross-channel tracking and more
   targeted audiences. Early virtual worlds, while technically groundbreaking and providing
   the necessary foundation for future worlds, often lacked audience-tracking tools and were
   open playgrounds without a specific purpose. New, recently launched worlds or those just
   around the corner will offer better tools for customer tracking and tend to target gamers,
   youth, conversation, or other specific tasks, rather than just being open. This allows better
   brand alignment and campaign integration.
4. Virtual merchandizing resonates with youth — and can be very cost-effective. Virtual
   items and other digital assets resonate with Gen Y consumers far more than with older
   (physical-media-loving) consumers. They appreciate novel, unique items and accept brand
   involvement in these items and their distribution — provided it has been thought through.
   Needless to say, the creation, storage, and distribution of virtual items can be very costeffective
   compared with traditional merchandise like t-shirts and caps.

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’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.

Now tell me again that these wacky 3D worlds are about to disappear?

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…hold your breath…