The majority of revenue is generated by fees charged to advertisers. Many strategies focus on first deploy a virtual world solution that is similar to existing Internet advertising paradigms. Then charge advertisers a pay per impression (PPI) for targeted ad placement, along with a traditional pay per click through (PPC) model. This can provide metrics and systems similar to existing advertisement programs, to facilitate a smooth initial transition for advertisers into this market. In the new immersive environment of virtual worlds, the true value for advertisers will come from a pay per action (PPA) model. This model will require a longer cycle to arm Marketing Officers and Brand Managers with the metrics necessary to demonstrate the return on investment the PPA model offers.

Deployment and Consumer Base

A first goal is to attract a large user base of consumers in the 3D Internet, and the strategy to accomplish this goal is widespread deployment of the Interactive Network. The more ubiquitous they can make the Interactive Network, the more consumers you can reach. Our initial focus has been on the most popular 3D Internet platform in the world, Second Life. Second Life has a free open source client, a strong growth oriented server-side architecture, and the largest 3D Internet user base.

Second Life

To encourage deployment with the Second Life platform, you could actively implementing the following strategies.

• Partnership arrangement with content and service providers to include Interactive enabled applications and Server deployment in their own content delivery campaigns.

• Interactive enabled applications given to all new Avatars entering through a partner Orientation Island.

• Free set of advanced collaboration suite to users who deploys the first Interactive Server.

• Studying the potential of a revenue sharing agreement with larger multi-sim owners.

The number of consumers that can be reached by the Interactive Network is a significant factor that you can directly influence. In addition, the active use of Interactive enabled applications will directly effect the amount of time you have the opportunity to provide relevant ads to the consumer. Our strategy is to encourage extensive use by providing a robust and useful user experience.

Some of the key benefits you offer to consumers include:

• Relevant and Useful Content. Technology delivers media resources to users that are directly relevant, through personalization and the intent of the virtual location.

• Ubiquitous Access. Ttechnology will provide media delivery and application access throughout the 3D Internet, only limited by regions specifically targeting us for exclusion.

• Ease of Use. The most useful and poyourful technology hides its complexity from users and providers, with an intuitive and efficient user interface. The most successful interface will be one that is simple and robust to a point that users hardly notice it.

• Useful, Unobtrusive Commercial information. You canhelp people find commercial information, product or service knowledge by presenting ads that are relevant to the user, and continually tailored to their needs. These ad placements seek to enhance rather then interfere with the user experience, and are never obtrusive.

Alternate Platforms

There are more then 40 alternative platforms to Second Life currently in use or announcing active funding rounds. Some of these platforms will attract a large consistent user base. The majority of these platforms are closed environments to all but a few established brands and developers. A strategy for deployment into these alternate platforms is to develop brand interest and a large enough consumer base to be of strategic interest to a select group of alternate platforms. To secure deployment across multiple platforms, the following criteria is being used for evaluation of these platforms.

• Significant and Growing User base.

• Open development environment conducive to our technological innovation.

• Favorable business model, unrestrictive to third party ad network or negotiable revenue sharing arrangement.

• Potential for conforming to Virtual World Interoperability Standards under consideration.