“Unlike other applications … Second Life has a storyline related to pretty much any press you want to talk about”

 EXCLUSIVE  You could for forgiven for not having heard of Habbo because it is aimed at teens. But with the seemingly blanket coverage it’s received in the mainstream media as well as on blogs and podcasts, you will surely have heard of Second Life. Both are online 3D virtual worlds where people interact with each other via avatars. Both are extremely popular and are experiencing rapid growth. And some of the largest brands in the world are starting to setup virtual life in Second Life. Here we learn more about them from their creators, and find out why they are so popular and what the future holds. For those unfamiliar with either of these social networks we recommend taking a quick look at their websites to get a basic feel

 STARRING 

• Emmi Kuusikko, Director of User and Market Insight, Sulake (Habbo)
• David Fleck, VP Business Development, Linden Lab (Second Life)
• Mario Menti, GMI, blog

The first conversation was recorded live at the Euro MR Event 2006

TIMELINE [30m19s]
00m00s Intro.

NOTE: Prior experience of these two free applications, and hence a basic understanding of what they look like, will enhance the listening experience.

1. Emmi Kuusikko (Habbo).
00m57s Intro to Habbo (scale, growth, turnover).
01m34s Sources of revenue.
02m54s Comparison with Second Life.
03m33s Core target group and managing individual safety.
04m36s Brands that advertise on Habbo.
05m21s Inspiration for Habbo - it started as a viral game.
06m09s Broadband as a growth driver.
06m32s Researching the need for regional customisation.
07m35s Competitors - for mindshare and for people’s time.
08m17s Average time spent in Habbo, and at what times of day.
08m50s Future developments - music, communication tools.
09m13s Key challenges - developing and advanced markets, partnerships.
09m46s Researching within the Habbo world - ‘research stations’ and ‘missions’.

Notable Mentions
Banner advertising.
Bebo.
Cyworld.
Games.
Google.
Habbo Homes.
Instant messaging (IM).
Micro payments.
MMORPG.
Music.
MySpace.
Nike.
Online teen community.
Orkut.
Research community.
Second Life.
Skype.
Social networking.
Surveys.
Teens.
The Snow War.
Tweens.
Viral.
Virtual worlds.
Youth.
YouTube.

2. David Fleck (Second Life), Mario Menti (GMI).
11m54s Intro.
12m20s Intro to Second Life - what it is, how it works.
14m18s Benefits of Second Life - webcasting with avatars.
15m24s Some brands in Second Life - BBC, Starwood Hotels, Harvard Uni.
16m00s Second Life vs. first life (i.e. reality) - policing, liaisons.
16m50s User base and growth.
17m37s Reasons for the wide media interest.
18m19s A utopian vision for Second Life.
18m49s Limitations with land.
19m27s Size of active user base.
20m29s User demographics - 31 is the median age.
21m50s Empowering the community to protect kids.
22m40s Mechanisms for community feedback.
23m01s GMI’s Second Life survey tool - immersive interviewing.
24m03s Business model and cash flow positive date.
“We’re hoping to declare profitability sometime in early 2007″.

24m41s Profitability drivers.
25m41s Whether any plans for a sales tax.
26m15s Future developments - integrated VoIP (virtual phone booths).
26m50s Using voice to hold in-world focus groups and for teaching.
27m27s Using SL to build 3D applications more cheaply.
28m29s SL’s billion dollar worth.

Notable Mentions
3D world.
Avatar.
BBC Radio 1.
Churn.
Economy.
Gaming.
Harvard University.
Linden Lab.
Media Intelligence.
Philip Rosedale.
Picnic 06.
Shopping.
Social networking.
Starwood Hotels.
Taxation.
Teens.
User controlled communities.
User generated content.
Virtual world.
World of Warcraft.

“Second Life is starting to move into the masses and word-of-mouth is starting to generate a lot of interest.”.

Music Theatrimus from the PMN

Series:MarketingTalk Series:AdTalk
Series:EMRE06 Series:Events