Think About It

We like to think we’re on the ball. We’re always looking for new ways to communicate our clients’ brands that will enable them to grow and prosper.

Yet we’ve never asked a client, “Have you thought about a strategy for marketing in virtual worlds?”

Virtual worlds, where people interact via 3-D images on the Web, have exploded in popularity. The site Second Life alone boasts “millions of residents from around the globe.” Some companies, seeing this new opportunity for exposure, are stepping into alternate universes with storefronts, events and even one-to-one marketing.

So why aren’t we recommending virtual marketing to anyone?

It’s not that we don’t appreciate the cool factor. We love cool. But in our advice to clients, we’ve never been about cool. We’ve always been about smart. And we think the smart move here is to wait, watch and learn.
 
Today, virtual marketing has too many unknowns. What return on investment can it deliver? Do participants in virtual worlds welcome or resent companies coming into their alternate universes? How do the demographics differ among the various virtual world sites, and which “metaverse” is the best fit for a given company or organization? We just don’t have the answers.

Some niche agencies are pushing their clients into this new world, despite the unknowns, saying that now is the time to jump in and start learning ahead of others.

We disagree. We say, now is the time to watch closely and learn from what others are doing.

So we are watching. We’ve seen the American Cancer Society organize a Relay for Life on Second Life that raised more than $100,000. We know that companies are using virtual worlds as focus groups, asking people to give them feedback on new products.

As we watch, we’re thinking about how our clients could benefit from the unique aspects of virtual marketing. At the same time, we’re asking tough questions, like, “How would we know who’s really in a virtual world focus group? Would we trust the opinions of alter egos as key informants in refining a product or service?”

Until we see the right fit, we’re not going to encourage anyone to take the leap into a virtual world. The way we see it, being one of the first settlers on a new marketing frontier is an ego boost. But from a business perspective, it’s not that important to be among the first to enter a new realm.

We don’t buy the hype that trailblazers are guaranteed to be the biggest winners. Later arrivals who offer something better can be as successful – or more. Alta Vista developed the first Web index, but today Google is the undisputed champion of Web search.

Of course, there are scenarios where early experimentation might make sense. A company whose target market is online gamers would find a captive audience in a virtual world. A company whose brand is centered on being a pioneer, especially a technology pioneer, also might benefit from jumping in ahead of the mainstream. In such a case, we wouldn’t be concerned with the direct return on their investment. For that pioneering client, riding the first wave in the tide of virtual marketing would be a brand-building move, not a sales move. Any revenue they generated through their virtual presence would just be gravy.

For most companies, we think there’s more to lose in investing in a medium that’s still a mystery than there is to gain from being a pioneer. So for now, we’re keeping our clients in the real world.

What do you think? Do you spend time in a virtual world? What kind of marketing do you think could work there? And when is the right time to experiment with virtual marketing?