At the end of the month last year, IBM stirred the world by deciding to open up a shop in Second Life, a virtual space which allows people to do anything that anyone desires. Up until recently, Second Life was basically used as a magic wand. A fat and unattractive woman could become a gorgeous character and a middle-class person could become one with a lot of real estate. Even any sexual frustration and hidden desire could also be resolved through avatars and virtual settings.
Second Life, therefore, not only has a positive effect, but also negative effects to society because one's never ending desires and greed grow quickly when there is no set of rules and restrictions to discipline such wishes. The idea of Information Technology enterprises using Second Life as marketing is rather astonishing yet good news to increase the quality of Second Life.
Corporate infiltration of virtual space
IBM's participation in Second Life was decided by its CEO Samuel J. Palmisano who decided to create an avatar in Second Life to interact with customers. AMD, the well-known semiconductor company, is also starting its advertisement through Second Life.
AMD made an exhibition hall and audience seats in Second Life. By opening numerous conferences, training sessions, and unofficial networks within, they started to market their products and promote their company. Even Dell, a major American computer hardware company also plunged into the Second Life market. They currently own a shop in the virtual world.
Sony who just demoed the Playstation 3 (PS3) last November announced that it will come up with a service called Home that is similar to the concept of Second Life this fall.
Through the 3D virtual world Home, Sony desires to expand a variety of businesses.
From marketing to election campaign
The enterprises' virtual space marketing strategy is on its hot spot. Threedimensional secondary space that is somewhat similar to reality attracts enterprises as another marketing space with potential.
At the end of the year last year, CEO Palmisano announced that IBM was investing US$10 million to design a virtual space in Second Life. At the current point, 3000 employees have joined Second Life and 300 of these are keeping in touch with customers on a regular basis. Dell established a virtual experience zone in Second Life. Cisco, the network enterprise, built a house with eight rooms for people to enjoy TVs and computers. The shops these enterprises have built in Second Life are called an on-off line converged strategy that connects to its business in reality.
Japanese enterprises are actively participating in Second Life as well.
Japanese animation production company DLE and TV Ashahi set a virtual movie theater in Second Life and are now showing many kinds of animation movies. A used book selling corporation named Book of Operation is also establishing a shop in Second Life using it as an important marketing space.
Not only the Second Life is used for a marketing purpose, it is also used as an election campaigning purpose as well. Hillary Clinton, a current senator of New York who is an influential candidate for the 2008 presidential election is putting up posters and campaign kits on a large signs, cars, and helicopters in Second Life, asking for votes.
Text messages and instant messages in Second Life
Vodafone, a global mobile communication company, provides text messaging and instant messaging services to virtual world users. According to Silicon.com, Vodafone will soon build an island in Second Life and provide virtual cell phones, so that the users can communicate within the secondary life via SMS and IM. They are planning to call their island Teaser and provide different communication services within the secondary life.
Many companies like Adidas, Nissan, Sun Microsystems, Reebok, and Yankee Stadium already own islands in Second Life.
Globally successful companies like Microsoft, Coca Cola, Intel, Adidas, IBM and Toyota joined the Second Life as well. Sun Microsystems is preparing a press conference regarding to the new strategy of the gaming industry. They already made the avatar of the CEO to go on a press conference. America's Wells Fargo bank made an island under the name Stagecoach, the mascot of its bank. Here, avatars can withdraw Linden Dollars, the virtual money used in Second Life. They even educate people to manage their budget. Adidas is showing high eager in marketing its new products.
The British Broadcasting Corporation, BBC, rented an island in Second Life. They are giving parties and music festivals in the island. The average age of avatars that live in this island is 32. This is eye-opening news for enterprises because the needs of the thirty year old demographic affect the market in the most influential ways. It is better to tell what the customers' want in Second Life than in the real life, where people are dispersed all over in all different age groups.
Toyota is a pioneer out of all car companies in starting to build a nest in Second Life. Toyota is selling virtual models under the brand named Scion. Users are customizing the cars as they wish and selling it in the market, spreading the Scion brand. Toyota aims for it to spread enough to impact the real market. Second life provides a perfect space for people to experience their products. Second Life citizens can easily figure out how the car handles and sounds as they test the Scion. The marketing manager of Toyota is looking for ideas to tune the product to customer needs in order to make the brand successful in reality.
The cost of intriguing advertisements in Second Life is US$200,000. This is the cost that the designers need to create elite virtual employees. The second life advertisement is the new hot spot.
Sony is up
Sony announced their plan of the Home service, a second life style game for the PS3 at the open inventor conference in San Fransisco last March. The Home service relates community, partnerships, and individual fit services.
The world is reaching to a Web 3.0 world. If users enjoyed games through networks before, Web 3.0 will allow us to use three dimensional spaces like Home to enjoy games like they are real.
Home users will be able to control avatars' movements with a PS3 controller.
They can own their own apartment and can decorate and design the interiors in the way that they want.
Mass media and public relations officers will soon no longer be needed to communicate with customers. Through Second Life, enterprises can communicate directly with the customers, foreshadowing another revolution of marketing.
