We reported last week that Exponential, parent company of online ad network Tribal Fusion, had identified virtual worlds as one of the trends to watch for 2008. Citing Coke Studios and Neopets as successful worlds, Exponential predicted that it wouldn't be Second Life leading the way in 2008. Instead, niche worlds would see a boom. The company is quick to qualify that, though. "Niche worlds may complement a public world nicely," Alistair Goodman, Exponential VP of Strategic Marketing, told VirtualWorldsNews.com. We followed up with a short Q&A to see if Tribal Fusion would follow through on Exponential's predictions, why the company sees niche worlds surpassing public worlds, and what companies can do with this knowledge.
Virtual Worlds News: Does this mean that Tribal Fusion will begin putting more money into virtual worlds advertising in the coming year?
Alistair Goodman: Tribal Fusion works closely with media planners to understand the objectives of their campaign, then we craft solutions for reaching and engaging that particular audience. These solutions may include virtual worlds - it just depends on the objectives of the advertiser. For example, some of the virtual worlds that we work with have proven to be a great tool for reaching and entertaining kids (e.g., Gaia Online, Neopets). For an advertiser that is looking for a safe, high-quality environment for reaching a younger demographic, we definitely recommend a niche environment like these.
VWN: Why does the company see worlds going niche instead of broad like Second Life?
AG: Niche social networks provide ways for people to connect based on shared interests or lifestyles - they are a great way to find other enthusiasts, but they are not necessarily to the exclusion of larger worlds. In the early days of the Internet, portals garnered the majority of mindshare and time among users, but as the Internet has evolved and people spend more time online, we have seen the rise of many more niche enthusiast content sites that complement the portals. The same phenomenon may occur with virtual worlds, providing many different choices for users to find worlds that fit
their interests.
From an advertising perspective, these niche worlds are a great complement to larger venues because they give marketers the ability to find a highly targeted, pre-qualified audience.
VWN: How can companies act on this knowledge since virtual worlds are still fairly new? Does Exponential have any business recommendations for dealing with virtual worlds?
AG: Advertisers go through the same process for evaluating a buy on a virtual world that they do with any other medium. They look at the quality of the environment, the demographics and psychographics of the target audience, how users are engaging - a host of attributes to assess whether it is a good fit for their brand. With vertically-oriented virtual worlds, just like with websites (or print or TV), more focused can mean better defined content or audience, which holds great appeal to advertisers.
Like in the real world, if a brand can generate pull, people will gravitate towards it and will want to have the brand experience. Businesses interested in working in a virtual worlds need to be creative, and use the advantages of the medium to develop a connection with users. These environments provide an opportunity to use the medium to create a memorable experience consistent with the attributes of a brand. Important factors to consider that help drive acceptance among users are a) make it fit the environment, b) give users a choice, and c) make it engaging.
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