In the last post, I responded to the Forbes article and why I think brands so often get it wrong in Second Life. I thought I'd take a few minutes to expand on that a little further, with what I see as the three golden rules for any RL company setting up in SL:
Last month, the corporate world reached an important milestone in Second Life. For the first time, a development built by a real world brand – Germany’s T Online - made it into the top 20 most popular places list. Did T Online achieve this by building some unique, must see draw in Second Life? Er no, they added camping chairs...for anyone reading this not that familiar with SL, these are spots where you park your avatar for a few hours and get some Lindens (the Second Life currency) in exchange. (See http://nwn.blogs.com/nwn/2007/06/taterus_monday__1.html#more)
Over the past six months, not a week has gone by where we haven’t been able to read about this or that company establishing a Second Life presence.
For those of us who were around during the first dot.com boom, there are echoes to ten years ago when companies first went online. Not only because of the gold rush mentality. But also because a lot of the same mistakes from the mid to late 90s are being repeated.
Just like a lot of the early brand websites were nothing more than virtual brochures, a lot of marketeers today are using this new 3D web, as another form of advertising.
To put things into perspective: For the week ending 17 June, Addidas was attracting just over 300 visitors a week, Reebok 168 and Coca-Cola 86. In other words Reebok was attracting an average of just one visitor an hour!
In fact, as we know, enthusiastic amateurs, sole traders and SL based businesses that more often than not operate out of people’s front rooms wipe the floor with real world brands. Just to give one example, Second Life fashion retailer ‘Adam n Eve’, run by UK-based resident “Sachi Vixen”, is currently 20x more popular than retailer American Apparel - no wonder AA is thinking of shutting up shop!
Generally speaking, I think there are three reasons why brands get it wrong: They try and transfer a real world experience to the virtual, they come into an environment which has a community suspicious of corporates, and instead of being in it for the long haul, they look for quick hits. To take each of these in turn:
1) Do something different to real life
One of the things which constantly mystifies and amazes me is how many Second Life stores, offices and experiences are obviously built as near-carbon copies of their real world equivalents. A leading, award winning London ad agency for example has a Second Life island, on which they’ve built a large glass office with examples of their work and meeting rooms. Looking at American Apparel again, in his book ‘Second Lives’, author Tim Guest talked about “cheesy pop” blaring in an empty store designed to look like the real one.
Unfortunately trying to recreate your brand experience wholesale in a virtual world, is not only a waste of money. It’s also a waste of a medium where anything goes and which offers huge potential for creativity and doing things differently.
2) Working with in-world residents
Secondly, brands forget that in Second Life someone is almost certainly already doing what they do, and doing it better.
You can buy clothes, go and see a concert, go to a lecture, dance in a nightclub and go on a virtual holiday – all thanks to the efforts of ‘in world’ residents. With an active – and vocal – community in Second Life, being seen to copy them and (worse) being seen to take the food from their tables is not only doomed to failure, it can also attract a considerable amount of hostility.
Instead, any brand wanting to succeed in Second Life needs to a) enhance residents’ in-world experience – and that doesn’t necessarily mean offering real world products virtually, and b) work with the community in developing any property rather than being seen to be just another corporate that’s been parachuted in.
3) A long-term investment instead of a quick-hit
Finally, a number of brands have come in, had quick PR hits after announcing their presence, and left empty brand developments behind. That approach has diminishing returns, especially since the novelty factor of companies setting up shop in Second Life has long since worn off and we are now starting to get - witness that Forbes article - talk about how SL isn't all that for brands after all.
Instead, to be a success here you need to see this as a long-term investment. Especially since Second Life is a medium still in the early stages of development.
At the moment, there are over seven million avatar registrations. However, in terms of frequent users, the numbers are of course just above 500,000. I'm based in the UK and talk to British clients. So to put this into some context for my local market, with 30,000, the UK has the fourth highest number of active residents after the US, Germany and France.
Reaching the audience equivalent of a UK regional daily newspaper doesn’t sound that impressive, until you look at the potential for growth. The number of registered avatars has increased three fold over the past six months, and the Gartner Group recently estimated that by 2011, 80% of regular Internet users will have a virtual world presence.
In addition to the future potential, it’s also instructive to look at usage patterns. Active residents are very committed, devoting on average a phenomenal 90 minutes a day to their virtual existence. These are people who no longer switch on the telly as much at night and so are no longer exposed to TV advertising to the same extent. Brands need to act accordingly and follow them in-world.
In summary then, every marketeer knows about good corporate citizenship. This is a concept that now needs to be taken into virtual worlds. Brands also need to recognise that virtual worlds are a golden opportunity to try something new.
In the late 1990s, the best websites and online businesses were those that saw the need for stickiness, were truly different and added value. In this new Internet, the brands that succeed will again be the ones that engage the consumer in a dialogue and that compliment what s/he does in this virtual environment.