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Ann Handley Ann Handley   Bio
12.20.06

Second Life: Warts and All

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Digitas VP Greg Verdino has a great article about his experiences with Second Life in this week’s MarketingProfs newsletter, in which he sorts out the wheat from the chaff, or the hype from the hip....

“Welcome to Second Life, Marketers” puts Greg smack in the chic lobby of Aloft, the groundbreaking Starwood hotel that opened in the virtual world well before one has opened in the real world.

Greg writes, “I'm alone at the bar, last stool on the left. I'd order a drink, but there doesn't seem to be a bartender on duty. I'd complain to the manager, but I can't find her, either. In fact, there isn't another soul in sight. No guests. No staff. It has been this way every time I've come for a visit.”

The hotel is “beautifully rendered. The attention to detail is amazing,” he writes. “But, still, it feels dead. This can't be what Starwood was going for when it started this marketing experiment.”

Can this really be the vibrant virtual community that the business press is trumpeting as The Next Big Thing?

Uh-oh, he says: “Linden, we have a problem.”

frog.jpg

Greg earns his chow advising Digitas clients on how to best leverage emerging media and technologies to meet their marketing goals, and he’s also leading a virtual tour for marketers of Second Life next month. So lately he’s been spending a lot of time leading a, well, second life (!) as a “metaverse drifter, trying to understand what all of this really means.”

Leading companies like Starwood, Dell, Pontiac, Adidas and Reuters have set up shops in this burgeoning virtual world. But does that mean that you’re missing out if you haven’t? You've heard about the vibrant real-money economy, but does that mean there is untapped revenue potential for your company?

The bottom line is this: Sure, Second Life is hot… but what are the real opportunities for brand marketers, and how can you get your head around what those opportunities might be?

What I like about Greg’s approach is its balance. He's not a cheerleader for Second Life, and he's not advocating that businesses reach for it like a toddler reaching for a bauble on the Christmas tree. In fact, he's refreshingly honest. He gives a realistic but intriguing view of Second Life, with its opportunites, but also it’s risks. It’s Second Life, warts and all.

He writes that “we need to be smart about our approach, realistic in our expectations and consumer-centric in our executions. Doing it just to do it isn't good enough. On the other hand, neither is waiting to see what happens.”

So check out Greg’s article here, and let me know what you think -- about the article, but also about the potential in Second Life for businesses in general.



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Comments

ann, what i liked more in greg's article is the analytic approach . the don't-be-there-for-the -sake-of-it approach is a valuablr insight for any company approaching second life. and by the way, i'm in sl trying to figure out where the hell i'm right now!! help me.

Posted by: gianandrea | 12.20.06

Ann - I read Greg's article and has totally spot on. But hnestly, I clicked through to this post because I wanted to see YOUR avatar. Please don't tell me that frog is you - you're much cuter than that! :-)

Posted by: ann michael | 12.20.06

Cautious and realistic, yet forward thinking. I like that he still advises getting off the bench.

Posted by: Cam Beck | 12.20.06

It's the difference between maintaining a presence in a community, and JOINING that community! Great read by Greg, and it should serve as a warning for companies: If you want to enter Second Life, you can't just plop down an island and wait for the residents to buy your product. You have to roll up your sleeves and become community members. When you give something BACK to the community, then they'll accept you, and maybe even buy some of your products.

It seems that, at least from a marketing angle, Second Life really isn't that much different from the first one.

Posted by: Mack Collier | 12.20.06

Thanks for this review, Ann. I liked Greg's "frank-but-fair" approach so much that I sent the article to several colleagues.

To be good, effective marketers we need to be both open AND objective. If we can be open to new technologies (even ones containing wild avatars!) and objective about the opportunities and barriers then we're not wasting time, missing opportunities and, perhaps most important, not getting consumed by the hype of what is "shiny and new".

What I do find opportune about the SL space is the chance to meet colleagues as I’ve met about 5 people (in 2 visits) from all over and had some interesting marketing conversations. One man runs an ad agency in Beverly Hills and did the online marketing for the movie “Borat”, another woman owns a retail store in The Netherlands and informed me as to how different the x-mas scene is in her country. And several others have been very kind to explain to me how to do certain things since I'm frequently doing stupid things in SL...like not knowing how to sit down.

But insofar as client opportunities, that’s going to require some time. To be honest, I’m still pushing my clients into social media so one brave step at a time. If I push avatars on them right now I fear they'll implode (ha!). But...I will be asking them to be OPEN to SL.

Posted by: CK | 12.20.06

Awesome insights, all. Really appreciate you all extending the conversation here -- Mack, Cam and G.

And Ann -- the truth is that I tried SL once...found is wholly impenetrable, because, as some of you know, I'm a bit of a slow-blinking mammal when it comes to technology. Which is why I approached Greg about doing the seminar to begin with...I figured if I needed a tutor and guide to help me figure it out, maybe other marketers do, too...?

Which leads me to CK -- really interesting observations and experience. But not knowing how to sit down? Seriously? See...that's the sort of stuff that I find incredible. If YOU can't figure it out, why do companies like Starwood, Pontiac and others think their customers will flock to Second Life? (Seriously -- I'm genuinely curious. Not a rhetorical question.)

Posted by: Ann Handley | 12.20.06

ck raised a good point: how you sit down? i'm tired to stand up.

Posted by: gianandrea | 12.20.06

GREAT point, Ann. It's a learning curve. FYI: to sit down you have to point, click and then you're set. Paul McEnany and Tim Jackson are getting it down far better than I.

But it isn't necessarily intuitive at first because you're working with an avatar. That said, a LOT of the people on SL are quicker than me because they've been on similar virtual-reality programs. Or maybe I'm just an SL idiot (likely). Then again, if I'd not had trouble, I wouldn't have met new people who were kind to explain things to me.

But a learning curve it is, so it will take time. It will also take these co's making sure their "properties" are manned (per Greg's point) and give value. That's key.

For the record: I did take to flying, swimming and dancing quickly. But the rest of the stuff was a challenge. ha!

Posted by: CK | 12.20.06

I too liked the article. It put to ease my anxiety about jumping into this hot new community.
Ann, I love "slow-blinking mammal" It is difficult to navigate and if your computer isn't fast enough it's really just a waste of time.
That's not to say I don't want to join in. A coworker and myself are trying to coax the boss to foot the bill so we can be part of the seminar.
I too forwarded Verdino's article to friends and colleagues.
I just want to know who has time to do this? Isn't it a glorified chat room?
I've only been there once and I couldn't bounce the ball in the intro and it seemed to be endless dirt paths?
I barely have time to read the blogs on this site. So I like being able to get the scoop from you.

Posted by: Tammy Strnatka | 12.20.06

Love the conversation and analogies -
Mack - not so different from first life is second life from a marketing perspective...got to get involved in the community! Keen insight -
CK - baby steps and implosion - Zounds...and I found sitting down to be a chore even after multiple visits. And flying? I know its one of the more desired super powers but whats up with that? Sounds like you've encountered some good contacts. I'm guessing you are a networking guru :)
Off the bench, Cam - at some point we all gotta do it. Right?
gianandrea - people say it takes a while to get used to it. Alluding back to Mack - sort of like First Life
Ann - thanks for the post. You might see yourself as "slow-blinking" but you sure are savvy in this MarketingProfs neck of the woods. So far as long term business and branding in second life - I remain skeptical. That may be my limitations.
I still love living!

Posted by: Bob Glaza | 12.20.06

CK gives me credit for more than I deserve, since I can barely sit down. My flying is getting better, but I still walk off of buildings or fly into them. I keep popping up on private islands too and get escorted off... all while frantically playing air piano for the burly bouncers... but they don't seem to care.

Open mind is the key. Skepticism can be good in the right dose.

As for time Tammy... it helps to be an insomniac. That's how I do it.

Now I just need to figure out how to get some SL tattoos. I do want to open a bike shop eventually though.

Posted by: Tim Jackson | 12.20.06

Great article. He obviously gets it (SL) much better than many - including the loquacious Joe Jaffe.

Posted by: David Cantor | 12.20.06

Ann,

Thank you, really! Greg's honesty and straight-forward approach is greatly appreciated. It has helped me to make a decision about SL for my clients.

My business philosophy is partly grounded in using and recommending tested, tried and reliable media. Why?

It can be dangerous to recommend a marketing and/or a communications tool to a client too soon, as it can discourage and frustrate customers unable to understand the tool or the message. In the long-term, those negative experiences can hurt the brand.

Posted by: Lewis Green | 12.20.06

So David, loquacious or not (you're obviously an ATS listener), are you saying I'm in the Verdino or the "than many" camp?

Posted by: Joseph Jaffe | 12.20.06

Greg's advice about spending time and setting expectations within reality are excellent.

But as someone who spends lots of time in Second Life, educating and consulting with businesses, I'd like to say I think Greg's "reality check" in the article skews a bit too much toward "traffic" as a measure of success. The unique possibilities of SL are so far beyond just "eyeballs!" We simply must, must not bring "first world" thinking into Second Life or any virtual environment. For instance, building a 3D brochure, which is essentially what Starwood did (among other things) with the aloft hotel has a very different value proposition.

It is also important not to judge the "success" of any real world business on traffic statistics. First they aren't terribly accurate, and second most businesses have not gone into SL with the intent of building traffic or having avatars there 24 hours a day. Most are in there experiementing with the new content categories SL and virtual worlds offer.

Reality is good - this isn't a mass medium and Greg is right about that. But Second Life should be a challenge to everyone to start "Rethinking Media."

After you attend Greg's seminar and if you are interested in learning about Second Life on an on-going basis with other business communicators, join our in-world group, SL Business Communicators. We meet monthly with very interesting people doing very interesting things in SL. Everyone is invited. More info at: http://freshtakes.typepad.com/sl_communicators

Posted by: Linda Zimmer | 12.20.06

I am with Linda on this ... but also think Greg's article is a very helpful primer.

One of the challenges is to invent some new form of measurement for social media or web 2.0 applications. Just as the audience is fundamentally different in profile, approach and behaviour, so too our analytics must take into account the evolving diversity inherent in Second Life and similar metaverses. (For example, how do you profile a goth-style 20 something female with wings who is really a 45 year old shop owner living in Hong Kong?)

The price of entry is your attention. Marketers should understand that at least.

Posted by: Gavin Heaton | 12.20.06

Divo has asked Mr Verdino to join him on Across the Sound - The New Marketing Podcast to discuss his article and the ensuing debate.

Who knows, maybe more people will show up to listen than currently on Scion Island :)

Divo AKA Jaffe

PS I'm showing up at Greg's house at 3am and he had BETTER be there to greet me with a cold beer!!!

Posted by: Divo Dapto | 12.20.06

Divo -- What's the date of your ATS chat with Greg?

Posted by: Ann Handley | 12.20.06

Thanks for the comments, all.

Linda -- Great resource you have there. I encourage everyone to check it out.

And Gavin, nice quote: "The price of entry is your attention."

Posted by: Ann Handley | 12.20.06

WOW! All the conversation about this is fantastic. Lot's of great points from all.

Linda and Gavin - I didn't mean to give you the impression that I'm all about the numbers. In fact, one of the key points I was trying to make is that it's all about the experience, the level of engagement and our ability to actually deliver value to the residents. In fact, SL is not unique in that respect - you could say the same thing about virtually all marketing channels, but especially those in the digital sphere. BUT I would counter that in order to engage people you do need to actually get in front of them first.

SL Business Communicators is a VERY good thing, from what I've seen an heard. I've not had the opp to join in the fun but I will.

Oh, and Divo, you're welcome to stop by any morning at 3am but I think you, sir, had better bring the beer with you. :-) Seriously, I'm looking forward to ATS and do hope that (regardless of who is buying) beer is involved. And I don't find you loquacious at all. Ahem... ;-) I won't have to call you Divo on the podcast, will I???

Posted by: Greg Verdino | 12.20.06

Dammit Handley! You beat me at stealing Gavin's quote! That was brilliant!

Posted by: Tim Jackson | 12.20.06

glad to tell you all, that in the meantime i got seated (in sl, of course).

Posted by: gianandrea | 12.21.06

I think Divo thinks "loquacious" is a swear word.... "You talkin' to me!?"

; )

Posted by: Ann Handley | 12.21.06

Ann and Tim you are too kind. Notice it was the only smart thing I could say ... I am spent for days after ;)

Greg ... I totally got that you were working from the experience POV -- but that is one of the most challenging points -- how do you measure experience? New times call for new measures and that is one of the things we need to grapple with. One thing is for certain ... there is money to be made and whoever nails it will change the game.

Posted by: Gavin Heaton | 12.21.06

The whole 2nd Life thing is fascinating and will certainly open up new ways to do business.

But it may also become a toy and a time-waster -- a fantastic video game for business people.

I look forward to learning more about it, but I'll be cautious at first.

Posted by: David Reich | 12.28.06

Do you believe that interest-specific virtual worlds would be able to address some of the problems that you very astutely observe? For example, would Starwood have been better off establishing its presence in a travel-related virtual world? Gamers have been able to make such environments work. Also, do you think it is only about how many users you have in a specific space, e.g., a virtual nightclub, or also what is also happening in the space, i.e., what content is available, what interactions are possible, etc?

Posted by: Evangelos | 12.28.06

Interesting article. I would say there is a definate possibility for a business to thrive in artificial environment. All it take is to develop the right model and make it exciting/engaging. People will buy virtual stuff using real $- just look at the auction market right now selling virtual money/items from Everquest and World of Warcraft.
Michelle

Posted by: Warts and all | 07.30.07

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