Media Enter Second Life But Its Potential Still Untapped

Perhaps fearful of missing the next big thing, brand marketers haven't missed a beat on the rising popularity of the Second Life virtual world. They're erecting huge pavilions to serve the community. Starwood Hotels has opened a hotel that doesn't even exist right now in real life. Retailers like American Apparel are testing Second Life as an emerging channel for selling both virtual and physical jeans. And if you visit Dell's island you can sit down at a console, build a custom PC and order it. They're adding value to the experience, but there's more.

Commerce, or at least the potential for it, is also a key motivator. According to Second Life creator Linden Labs, residents spent $9 million this year - much of it with each other. Business is growing in the 3D community at a 12% monthly clip and is up 287% year-over-year. Small as it is, it shows promise.

The media, to its credit, is also in the house. Reuters has created a News Center where it presents world and business news in text, video and audio. It also has a reporter inside the world to field stories. CNET and Wired have - or will - have virtual offices. These are used for hosting events. And CBS said last week they are launching a virtual version of Big Brother, pitting three Second Life residents against each other. None of these initiatives yet are supported by advertising.

The media has an opportunity to create community in Second Life by taking offline experiences and bringing them online in a powerful way. In the process they will attract new citizens.

For example, every TV network should have an island where they host viewing parties. Here residents would be able to view live broadcasts, including the ads. This would replicate the kind of weekly communing that already exists online in living rooms around the country.

Newspapers and magazines, none of which has a significant presence in Second Life, have an even bigger opportunity. They can recreate the tangible newsstand browsing experience that so many of us love by building a virtual one. Residents would be able to browse and purchase electronic single copies as well as real-world subscriptions.

All of the efforts so far are just experiments. And it's great to see marketers in place. Now we need more of our media partners joining us to complete the circle, perhaps giving rise to an advertising economy that is analogous to what lives offline.