Avatar – A graphical representation of the user that can been seen on the screen. It is a primary method of interactive with the environment.
3D Internet – The evolving Internet will consist of new platforms in which users navigate 3D environments similar to those seen in video games.
“in world” – Common phrase to describe a user participating in the 3D Internet
Mash-Up – A collection of smaller applications, common in socially interactive websites sometimes referred to as Web 2.0
Social Networks – Websites, and now 3D platforms whose purpose is to encourage social activities on the Internet. Often, content creation by the users plays some role in the experience.
V-Commerce – A phrase first coined by an IBM marketer, short for virtual-commerce, to describe the 3D Internet equivalent of e-commerce.
Virtual Goods – Graphic representations of real or fantastical products, that only exist in 3D platforms or games. A wide range of items, from virtual clothes and houses to virtual gold for commerce transactions.
Virtual World – A 3D online environment where users can interact with graphical representations of themselves known as avatars. |
Internet technology has continued to expand rapidly into the everyday lives of users around the world. Rich multimedia applications and social networks powered by consumer content creation have become a driving force of media consumption.
Advertising budgets are continuing to follow the users from their TV, Magazines, and Billboards to the World Wide Web. According to Interactive Advertising Bureau and PricewaterhouseCoopers LLP, Internet advertising revenues reached a new record of $4.9 billion for the first quarter of 2007, a 26% increase over Q1 2006.
"The continued growth of online ad revenues clearly illustrates marketers' increased comfort with the extraordinary vitality and accountability of this medium," said IAB President and CEO Randall Rothenberg. "It reaches consumers with an unprecedented level of efficiency and measurability that provides marketers with actionable data. And the ever-changing landscape of new platforms and technologies that enrich interactive advertising guarantees that this growth trend will continue."
Mr. Rothenberg goes on to discuss in the June 6, 2007 press release how these revenue numbers, coupled with the sluggish growth of traditional advertising, is a significant indication of interactive advertising’s relevance to the industry.
At this time, the next evolution of the Internet, a 3D Internet, is upon us. Currently comprised of an ever growing number of “virtual world” platforms, such as Second Life, There.com, Multiverse, Hipihi, and Project Entropia, these 3D online environments are not designed to be video games. Instead, they are general platforms for social networking, business collaboration, v-commerce, and new forms of interactive media.
Although based on similar technology to online games such as World of Warcraft and Sims Online, these new platforms have significant differences. The leading platforms have “currencies” that can be exchanged for US dollars or Euros at any time. “Virtual Goods” are being sold at an amazing rate; Second Life reports 12.5 million transactions in July, each ranging from less then a cent to over $1500.00. Users are participating in a myriad of social and entertainment activities, and, according to Market Truths, each spending an average of 15 hours per week immersed in these virtual constructs.
Once again advertisers are following the users to the new platforms, as reflected by the increased allocation of advertising budget. Advertisers spent $6.7 million in the first quarter of 2007 on developing a virtual presence in Second Life, up from $2.24 million the last quarter 2006. Even though these platforms are not video games, an interesting report from the Yankee Group is projecting that in game advertising will grow from $182.7 million in 2007 to $971.3 million in 2011.
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