The virtual world of Second Life

The virtual phenomenon known as Second Life has been around since 2003, but only recently began to draw attention in Asia's industry circles with the news that both BBH and Leo Burnett had entered its online façade. A three-dimensional 'metaverse' which allows users to participate in its virtual economy, Second Life has been tagged by some as a passing fad; its 'residents', which recently hit the magic number of one million users, will likely beg to differ, as are the brands, politicians and agencies waking up to its unique potential.

1 Second Life is not a game. As of September 2006, the virtual world had a GDP of US$64 million, based on residents being able to sell pretty much anything they create within the metaverse, as long as they can find a buyer. While the token of currency is known as the L$, these can be exchanged for real-life US dollars with Second Life creator Linden Lab. In addition, Linden operates a land sales system that allows residents to speculate in virtual real estate. According to a recent article in The Economist, the top-10 Second Life entrepreneurs are making average profits of over US$200,000 a year.

2 Second Life is ideally placed to take advantage of the current fetish for all things user-generated. Residents are provided with basic building blocks, which they can use to build all manner of objects — real or imagined.

3 Second Life is growing at around 50,000 users per month. It plans to launch Japanese and Korean versions soon, and non-US users have been boosted by the decision to remove the need for a credit card to join. According to recent figures, 44 per cent of Second Life residents are creatives. The user base broadly reflects highly-educated users, with a median age of 31.

4 As a medium for communication, Second Life has some remarkable uses. Bite Communications hosted the first-ever virtual press conference held by a Fortune 500 company — Sun Microsystems — and also arranged for an interview at CNet's own virtual Second Life headquarters. And Text100 became the first PR agency to open a virtual office in Second Life in August of this year.

5 Marketers have not been slow to recognise the experiential branding potential inherent in a medium which revolves around creativity. Starwood Hotels has tapped The Electric Sheep Company to premiere its new hotel brand — aloft — in Second Life, allowing residents to feedback opinions and ideas about the hotel's construction. Toyota, meanwhile, was the first carmaker to enter Second Life — first by giving away free virtual versions of its Scion marque, and then selling three models of the car within the virtual world.

6Ad agencies are also eyeing Second Life's possibilities. BBH narrowly pipped Leo Burnett as the first ad agency to enter its environs earlier this year; while Burnett has established an 'Ideas Hub' that will become a collaborative space for the agency's creatives across the world, BBH has set up a virtual agency populated by avatars of its staff. "It allows us to understand it, so if there are clients who want to use this, we can advise rather than talking about it from the outside," says Burnett regional ECD Linda Locke.

7 Politicians should take note. Forward Together, the political-action committee headed by former Virginia Governor Mark Warner, is integrating Second Life into its campaign strategy, making Warner the first politician to give an interview in a virtual town hall.

8A number of digital players have emerged onto the scene to help brands and bigger agencies navigate the virtual world. The Electric Sheep Company originated in Second Life itself, and counts Reuters, Starwood Hotels and Sony BMG Music as clients. Other shops include Rivers Red Run, which is working with BBH, and Millions of Us, which is handling assignments from Toyota and Burnett.

9Some residents are wary, however, of the increasing commercialism of Second Life — including a 'MetaAdverse' network of ad billboards that allows in-world advertising. This caution is likely to limit conventional advertising, making engaging brand experiences considerably more powerful.