An interesting article on CNN talks about real life car companies tyring to sell cars in Second Life.
It looks like GM is making a few mistakes getting into this space. I'm interested that they chose such a low price for the cars - you'd think part of the point of playing in this virtual space is brand awareness for them. "So cheap that anyone can have one" is probably not the image GM is going for. This would have been a perfect venue to showcase some interesting "concept cars". Its also interesting that they are going for total customization by the user/owner: of course, this has no relation whatsoever to the actual experience of owning or buying a car.
On another note, whomever does Second Life's marketing is doing a really good job of getting their name out in the press. Business Week and CNN have been talking about this quite regularly. Given the first mover and network advantages of the space, might Second Life be the start of the first truly usable VR internet?
Sunday, November 19, 2006
Thursday, November 16, 2006
"Local" webvertising?
We had an interesting speaker in my Pricing class yesterday. He contrasted Google's use of auctions for advertising (Bidding for AdSense Keywords) with traditional media buy patterns (TV, Print, Radio etc.)Since online ads are measured in clicks (a viewer action) rather than impressions as in traditional media, companies ROI on advertising money is much easier to quantify. One of the speaker's "thoughts for the future" was the idea that local advertising would play a bigger and bigger part of overall internet ad revenue. Will it?
On one hand, the potential for selling ads on Google Maps or other map-it sites is clear. Restaurants might pay to appear on the map while someone was searching for driving directions towards a theater for example. As a map becomes less and less useful the more ads are placed on it, Google might manage this map space in an auction style as well. Provided that Google, or whomever, can provide some simple way to facilitate these media buys from local companies this strategy makes a lot of sense.
The problem I see with the "local" concept is that I'm not sure it applies very well to the internet beyond the "map software" space. While the web in many ways is much more "precisely targeted" than traditional media, the one area where old media is better targeted is by location. It is much easier to reach residents of a particular city block by placing an ad on the side of a bus shelter than it is by using the internet. I think one shouldn't discount the power of traditional media just yet: It has become one of a set of tools rather than the only available tool.
On one hand, the potential for selling ads on Google Maps or other map-it sites is clear. Restaurants might pay to appear on the map while someone was searching for driving directions towards a theater for example. As a map becomes less and less useful the more ads are placed on it, Google might manage this map space in an auction style as well. Provided that Google, or whomever, can provide some simple way to facilitate these media buys from local companies this strategy makes a lot of sense.
The problem I see with the "local" concept is that I'm not sure it applies very well to the internet beyond the "map software" space. While the web in many ways is much more "precisely targeted" than traditional media, the one area where old media is better targeted is by location. It is much easier to reach residents of a particular city block by placing an ad on the side of a bus shelter than it is by using the internet. I think one shouldn't discount the power of traditional media just yet: It has become one of a set of tools rather than the only available tool.
Tuesday, November 14, 2006
Welcome to "World 2.0"?
It looks like Microsoft is going ahead and creating a virtual currency as I described in my previous post:
http://www.xbox.com/en-US/live/features/microsoftpoints.htm
These points will be the currency of choice for buying Zune songs, and also for buying maps and extras for Xbox live.
If anyone has the power to pull this off, it's Microsoft. My prediction is that this is the start of an era in which the corporation eclipses the power of the state in a variety of formal ways such as currency, virtual and non-virtual security, market making, etc. Indeed, due to the trans-national nature of internet transactions, its allready private companies that are providing transaction security, rather than the court system of a state. Interesting stuff IMHO.
http://www.xbox.com/en-US/live/features/microsoftpoints.htm
These points will be the currency of choice for buying Zune songs, and also for buying maps and extras for Xbox live.
If anyone has the power to pull this off, it's Microsoft. My prediction is that this is the start of an era in which the corporation eclipses the power of the state in a variety of formal ways such as currency, virtual and non-virtual security, market making, etc. Indeed, due to the trans-national nature of internet transactions, its allready private companies that are providing transaction security, rather than the court system of a state. Interesting stuff IMHO.
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