BLOG POST: MY TERM RESEARCH PROJECT

My project is about advertising and marketing in the virtual world. As we are living in the age of new media, there is no doubt that something like virtual worlds would come along and capture our imagination. With virtual spaces like Second Life becoming ever so popular nowadays, corporations must look to take advantage of this growing demographic. They have an advantage in doing this because most of the users of virtual worlds are often immersed in the experience, so the advertisements within the virtual worlds will be particularly engaging.

First, corporations must find a way to get a foot in the door of the virtual world. There have been many tactics, including the tying in of both the virtual world, and the real world. For example, if one’s avatar has earned enough points or merits, then the person behind the avatar may gain access to special discounts on products in real life. Another approach that companies have used is to create their own virtual world. This way, they have control over what the users of this world experience and can market their own product without fear of competition. However, this is a costly investment. Corporations also faced a problem when advertising to virtual worlds, because they did not know whether to target the avatar, or the person behind the avatar. After some research, they realized that for the most part, avatars are what the people who created them aspire to be, so by catering to the avatar, the person will be drawn in as well.

Corporations must realize that although the world has experienced globalization, there still is no one magic marketing technique. Each virtual culture must be approached with different strategies, because various groups have opposite extreme views.

Real-world politics has also had a place within virtual worlds. This is important because in the corporate world as well as political campaigning, tapping into a new market can give you the edge. By targeting a demographic your competitors do not know about, it is possible to gain a significant competitive advantage.

Corporate sponsorships have also worked in drawing consumers in. By sponsoring branded events in the virtual world, buzz will be generated. This will attract more customers and generate greater profits.

There are also many real challenges and risks associated with virtual marketing. There are technological issues, where the platform where a certain virtual world is hosted may have too many requirements for an average computer system. The users themselves may be a problem, as they may not want corporate advertising encroaching upon their virtual way of life. Privacy issues are also a concern, as corporations want to track the behavior and decisions of virtual world participants. The players within the game, on the other hand, want companies to respect their rights.

The virtual world is growing in popularity and technology is changing the way we experience it, as well as the way corporations can advertise to us. In order to be successful in this field, organizations must be creative and innovative. Research is also important, as it provides information on what kinds of decisions to make. In old media, advertising was a one-way communication. In virtual worlds, it can work in two channels. In games such as Second Life, people can respond and even deface advertisements. If corporations learn to take advantage of this two-way communication, it would revolutionize the marketing field.