Patrick Collings, partner of Sagacite Brand Agency, is speaking about Virtuality and the Rise of the Avatar, examining at the concept of virtual worlds (and the people who visit them).

Brands have been dealing with the concept of virtuality for quite a long time. Look at McDonalds - just seeing the golden arches brings about visions of endless supplies of same-standard fast food. But in reality there is an end to the supply and the standard of food produced is not always equal.

Examining: Sony Playstation's Home

A 3D community for PS3 where users hangout and explore a connected world. Customise your clothes and facial characteristics from millions of options and download extras from the Playstation store. You can jump from the virtual world into a game and back again.

Some pre-teen-targeted virtual worlds, which are highly regulated and incredibly popular, are Webkinz, Club Penguin (just bought by Disney) and Toon Town.

Current virtual worlds are sometimes comparable to internet in the 1990s, a bit slow and clunky, but are considered by some to be the first steps towards Web 3.0, where the internet surrounds you completely.

Second Life

The most well known virtual social community, was unique and grew quickly when it started because:

1. players created their own stories
2. players built their own worlds
3. players owned what they built
4. players could sell what they owned

There has been a slowdown in the growth rate, probably because more virtual worlds have been established, but the money spent has gone from $500k per day to $1.2 Mil per day. These are huge numbers. Big eyes watched of course. So gambling and interest on monies earned are now gone.

In Feb 2008, 55 000 people had a positive Linden Dollar (Second Life currency) balance. Avatars have continued to evolve and are becoming more realistic, with photo-realism starting to become popular.

The average age of a Second Lifer is 32, with 45% being female and an average online time of 45 hours per month. 45% of them come from Europe, with 32% from USA. South Africa doesn't feature because of the heavy bandwidth usage.

Brands have flocked to this world. But many have closed. Literally, with locked up empty storefronts on an island. Brands failed because:

1. there was a rush to live the hype
2. there found no effective advertising channels
3. replicated real world strategies with big shiny stores that people didn't respond to
4. there was indifference and hostility from residents (some even attacked stores with flying penises and burning hummers to show their disdain)

Brands that are involved include Renault, Microsoft, Armani, Amazon, universities, tourism agencies and more. Along with others built by residents not the brands themselves: Rolex, Nike and others.

So what should brands do?

1. be aware
2. see virtual worlds as evolving stories - don't see it as a technology type to take advantage of with immediate gratification
3. role playing is very big in second life
4. don't try conquer, immerse
5. treat virtual worlds as petri dishes - allow your brand to be altered and used differently; let users make demands and test your products

Interestingly, avatars are now starting to cross worlds. So through a common platform, you'll be able to walk out of Second Life and into Bside or another virtual world of your choice.

Some questions:

1. will wandering avatars represent us?
2. will we acquire brands for them, where we'll be able to more easily achieve our aspirational life
3. or let them influence our brand choices - perhaps clothes you wouldn't purchase in real life ... yet
4. will avatars become brand ambassadors - like mo the meerkat for vodacom; or angelina jolie avatar, and not Angelina herself, for Greenpeace?

And some final thoughts:

• virtuality is a part of our lives
• virtual worlds are increasing - perhaps similar growth to facebook
• their future lies with the youth
• brands need to rethink the rules
• look to branded entertainment
• bandwidth contrainsts
• avatars exist beyond virtual worlds
• their impact still has to be realised