Avatar Psychographics Report:SL Business Communicators Meeting - March 7, 1:00 pm

Long-awaited research (for me, at least) on the psychographics and media usage of Second Life avatars and their owners is being released by research company, Market Truths on March 7 at 1:00 p.m. SLT.  I'm delighted that Market Truths president, Mary Ellen Gordon has been kind enough to let SLBCers be the among the first in the know - by reviewing the findings of the report titled, Psychographic Segments and Media Consumption, at our March SL Business Communicators meeting.

This is the only report of its kind that I am aware of - although there have been lots of speculation and extrapolation about avatar behaviors.  After months of research with avatars in Second Life, we now have some researched insights into the attitudes, behaviors and motivations of the people and avatars that inhabit Second Life.

This is information every marketer, communicator, virtual world developer, educator, and media agency needs.  I've been told there are some surprising findings.  We are also inviting members of the SL Marketing Club to join us for our meeting(s).

You are invited to come and get an overview of the findings, ask questions and hear the discussion.

The meeting will be held at Market Truths Island at the open-air beach auditorium located at 230, 107,21.

IM me (Znetlady Isbell) or email me with any questions.

See you there!

February 28, 2008

Market Researcher Responds to Second Life Usage Decline Reports

Mary Ellen Gordon, president of research company Market Truths stopped by here today to comment on my post about the public radio report on Second Life's economy yesterday.  Although I did not address it in my post, the Marketplace reporter, Janet Babin, quoted in her story the widely repeated 5% decline in Second Life usage during November.

Mary Ellen's researcher's insight shared in her comment is well worth pulling out here in case you don't tend to dig through comments:

"I agree with all of the eloquently expressed comments in the post about avatars, but what really drives me crazy is how irresponsible people are about reporting that 5% drop figure (in the story, not the post).

This isn't the only news story I've seen it in, yet no one seems to consider the simple fact that months have different numbers of days in them and takes the obvious and easy step of adjusting for that. When you do, that shocking drop was actually 2%. While it's true that month-on-month drops have been rare in SL's history (there was a 1% drop once you adjust for days in the month in August of 2007, and an 8% drop in March 2005), the reason is that up until about the middle of 2007, SL was enjoying double digit growth (most months) in monthly hours of use. That's enough growth to mask a lot of pesky details such as variation in days in the month and vacation and holiday periods when a lot of people are not near a SL compatible computer.

But the thing is, no form of media (including those reporting this story) enjoys monthly double digit growth in hours of exposure forever. Even if you look at the second half of the year during the period of "slowdown" hours of usage increased (after adjusting for the number of days) by 14%. Most traditional media outlets would be jumping for joy if their own hours of viewing increased by 14% in six months, so I'm not sure why they're so quick to interpret it as a sign of doom when it comes to Second Life."

Personally, I've been fascinated by the fact that the Second Life usage statistics are watched and reported as if it were the stock market.  That in itself speaks volumes to the obvious importance of SL has as an indicator of something bigger than SL alone. 

January 23, 2008

 

Forrester Social Technographics: A Lens for Second Life Marketers

Forrester's recently released its Social Technographics report examining participation of the U.S. online population in “social media,” such as reading or publishing blogs, offering online reviews or using social networking sites.  Forrester groups people into six categories based on how they participate in today’s Read/Write web.

Social Technographics gives us some important clues to what our virtual world strategies need to look like.

Although I don’t agree with the “ladder” stratification Forrester uses, - which suggests a hierarchy of more or less significance to a social media activity (they are all equally important) - but the categories are extremely important indicators that marketers should examine and use as a framework for all social media strategies – virtual worlds included.

Forresterparticipationladder_2



























The heavy resident-created content and “early adopter” nature of Second Life may immediately suggest that the social technographics of Second Life residents is significantly weighted toward the “creators” at the very “top” of the Forrester hierarchy.  Especially since the technical learning curve is so steep to just get functioning in Second Life, much less getting productive enough to create there. 

But, don’t confuse technical savvy-ness, with the social networking behaviors of social technographics.  Social technographics focuses on the various participative activities a person or “population” engages in. 

Its true early SL residents rather obviously tend toward “creators” – they collectively, after all, built the SL environment. But, as the population is growing, the social technographics start to look more generalized.

Recent Second Life initiatives seem to make some pretty sweeping assumptions about the activities residents will find engaging.  But without looking at all the potential activities different types of social media participants are likely to value, it is impossible to create a truly successful presence – or better yet, to offer interesting content across preferred behaviors to engage the largest possible audience.

Forrester’s study shows that social technographics tracks fairly reliably within generations.  It is no surprise, for example that young millenials are heavy creators of social media content and that a large percentage of seniors are “inactives.”

I thought it a valuable exercise, though, to look at Forrester’s Social Technographics through the lens of age distribution in Second Life.

I graphed Forrester’s preferred activities percentages by generation; excluding ”Inactives” altogether since by definition they don’t participate in SL.  The following shows the graphing results.  Because Forrester specially notes that people engaged in social networking activities for entertainment purposes had a little different social technographics profile, I included them as a separate category.

Soctech

We see that GenYers are heavy content Creators, but they are even bigger Joiners, and GenXers and Boomers like lurking and critiquing.  Entertainment seekers are also big Joiners and have a tendency to engage in creating, collecting and criticizing relatively equally.  Everyone, except GenYers are bigger Spectators.

Now let’s look at the generational makeup of Second Life to get a sense of participative activities that might appeal to the SL generations.  The graph below is based on Linden Lab’s most recent data of “active” users (1 cumulative hour in last month) and is international.  Just for some comparison I also included age information from the First Opinions Panel's most recent data, which is demographic information from FOP U.S. research panel members.   While neither data set allows us to scientifically extrapolate because the data has no valid segmentation, the contrast is pretty interesting in itself – and the trend tells us something that may be unexpected.

Here is what the generations look like in SL:

Slagedistribution
Looks like we have a bunch of GenX “Spectators” in Second Life!  Boomers are very heavily represented in FOP's data, which is likely a function of their methodology in recruiting panel members - but it should not be discounted as a significant trend.  But both data sets do tell us GenX is most heavily represented in SL.

There is overlap in preferred activities of the generations – people that do one activity are likely to do at least one or more of the others – so don’t generalize your strategies to something akin to GenXers want to walk around your corporate museum.   Spectator doesn’t necessarily mean passive – these people are also enthusastic Joiners.

I expect, ethnographically, the social technographics profile of SL may more resemble the Entertainment category, but more research on that is in the works.

Charlene Li, author of Forrester’s report, is a social media star to me as she starts the report with these two sentences of wisdom:

“Many companies approach Social Computing as a list of technologies to be deployed as needed — a  blog here, a podcast there — to achieve a marketing goal. But a more coherent approach is to start with your target audience and determine what kind of relationship you want to build with them, based on what they are ready for.” (emphasis mine)

Virtual worlds offer extremely rich ways to put social technographics intelligence to work.  Take the time to give a hard look at the social technographics of who you are most trying to engage, examine the implications for your tactics, and create smart VW strategies that draw into and from the preferred behaviors.  More importantly, create virtual worlds strategies and content that support all the activities social networkers engage in, and ways to move among them.  You have special opportunities in each activity to provide and to get value.

More on the implications of social technographics in creating virtual world strategies in an upcoming post.  Stay tuned.

See the Executive Summary and outline of Social Technographics, or purchase the $299 report here.

A big thanks to Forrester and Charlene Li for providing me a review copy of the report.

May 29, 2007


Gartner Predicts 80% Active Internet Users Will Live In Virtual Worlds by 2011

Gartner136 Gartner, of the famous Hype Cycle, released news out of their Gartner Symposium/ITExpo:2007 going on through tomorrow, that they are predicting 80% of active Internet uses will have some kind of a "second life" in a virtual world by 2011. 

Gartner also predicts that meaningful corporate use of virtual worlds will lag behind the influx of individuals into them, but that "the collaborative and social aspects of these environments will dominate in the future."

The Symposium is Gartner's premier annual event, geared to IT professionals, and it focuses on the emerging trends in business, technology and the economy.

According to their press release, Gartner is advising clients that virtual worlds is an emerging trend, and to go slow in investing until platforms are more stable the environments mature. 

Toward this end, Garnter offers five "laws" for participating in virtual worlds:

  • Virtual worlds aren't games, but they aren't parallel universes (yet)
  • Behind every avatar is a real person
  • Be relevant and add value
  • Understand and contain the downside
  • This is a long haul

Gartner's "laws" and advice are not necessarily more insightful than the conversations going on within the virtual world community, but it does encapsulate them nicely.

It also lends Gartner credibility to virtual worlds for businesses and as an evolution of the web and social networks, for commerce and business operations. 

The gold quote from the release:

"Despite the concerns within companies, don’t ignore this trend. They will have a significant impact on your enterprise during the next five years.”
---Steven Prentice, Gartner vice president and distinguished analyst

April 25, 2007

Second Life Brand Perception Research Study Released by Market Truths

Think SL residents are opposed to real life brand presences?  Not true.

According to the research report, Real Life Brands in Second Life, released last week by Market Truths, 49% of SL residents think the presence of real life brands is positive; and about a third have a neutral attitude.

Generalattitudes_3
   

This is just one of the sometimes surprising findings of the only statistically rigorous market research study done to date on SL resident attitudes toward brands (that I am aware of – Komjuniti study referenced below).

Market Truths did allow me to share the report with the attendees of the recent Virtual Worlds 2007 conference in New York where I presented several of its key findings, along with other SL data and virtual world marketing issues.

Perhaps one of the most intriguing of those findings is that residents were asked to name and react to up to ten brands they have encountered in SL.  Of the 21 brands ultimately named (unaided), four do not actually have an official SL presence.  They are, however, still getting positive brand impact from their “unofficial” (or perceived) presence.

[Update:  158 brands were ultimatly named in the unaided awarness question.  The 21 named in the report reflects mentiones by 3% or more of the participants, and who had no affliation with the companies named.]

The 35-page report goes on to examine the perception of individual SL initiatives by major brands, and how each has helped or harmed the perception of that brand in real life. One brand, who has no official SL presence, garnered a negative RL brand perception due to its perceived SL presence.

[Update:  Microsoft, who has no public SL presence, had the greatest proportion of negative mentions, however overall, they gained a more positive than negative perception as a result their SL presence.]

Overall, the Reuters' SL presence comes out on top with residents – both in SL and RL.

Real Life Brands in Second Life directly contradicts conventional wisdom that SL residents are against RL brands coming into SL.  In fact, residents see some real benefits to corporate presences, such as credibility for SL and more resources for infrastructure; even while they harbor fears brands will harm small content creators and put upward pressure on land prices.

When asked what activities residents would like to engage in with their favorite brands (whether currently in SL or not) co-creating products and customizing products were among the top three of the eleven preferred activities.

Finally, the report points marketers to some important implications for their SL presences, including several tactics I’ve written about before such as the importance of effective in-world communications strategies, RL and SL integration and quality experiences.

The study is grounded in recognized research methodologies, including statistical sampling, quality control techniques, panel validation and adjustments for biases and panel member time in SL. You will find a thorough discussion of the research methodology included at the end of the report.

Last week German agency Komjuniti released a survey of 200 Second Life participants that reportedly showed 72% of respondents “expressed themselves as being disappointed with the activities of companies” in SL, however Komjuniti also reported more than a third of respondents weren’t even aware of “the branded presence.”  A few statements in the Komjuniti press release didn’t ring true to me, so I went looking for the study.   I was unable to find the study itself to look into this seeming discrepancy - only the press release announcing the study - which does not indicate the methodologies used or the activities studied. Of all the online reports and posts I have found about the Komjuniti survey they each only reference the content of the press release.

The conclusion Komjuniti draws from their study is: “The brand sites on Second Life currently look like they’re being treated in pretty much the same way as advertising campaigns, placed with the hope of getting high visitor frequency and good PR scores”.

It is impossible to tell whether the Komjuniti survey was a statistically representative study, if it considered factors such as participants’ time in SL, business ownership in SL, or if the survey was devised by active SL researchers  – any of which could impact the overall outcome. 

Given the wide disparity in the findings of these two studies,  I’d be intensely interested in seeing the Komjuniti study and its methodology in order compare it to the findings of the Market Truths study.  I suspect the differences come from the focus of each study: Komjuniti seemingly focused on customer service/interaction while Market Truths focused on brand perception impact and not a specific activity.

The Real Life Brands in Second Life research report is available for purchase ($200) at the Market Truths website.

If I find the full Komjuniti study I will update the link here.

April 6, 2007

Reviewing Second Life in 2006

Giff Constable over at Out to Pasture has a great post summarizing all the happenings in Second Life during 2006. 

Recommended reading - and an easy way to catch up on the many SL highlights!

December 28, 2006

Second Life in the Media

Second Life has gotten tons of media coverage in recent weeks – and it’s not limited to just the gaming or tech pubs.  Much of what I find in the news media is fairly light and airy but there is other reporting going on that is much more enlightening.

Here are pointers to a few stories you might find interesting that report on Second Life from different angles.

Popscienceimage
Popular Science (September 2006)
Your Second Life is Ready
The reporter enters Second Life with guide Hamlet Au of New World Notes and tours several aspects of Second Life.

Opensourceradio Open Source Radio: International Public Radio
Living in Game Space
. (mp3, 24 min, aired March, 2006)
A broad-ranging interview with an educator from MIT, SL reporter Hamlet Au, and others, about SL sociology, real life versus virtual life, sex, education, architecture and more; with questions coming in from the listening audience.

Be sure to check out some of the reading material at the end of the accompanying blog post.

Phoenix


The Phoenix (August 2006)
Right Click to Learn
Second Life as a learning space and for educational collaboration and community building.

 

Clickz ClikZ Network
Marketing Opportunities Emerge in Online Gaming Venues (August, 2006)
Statistics and research about gaming for marketers.

Second Life Breaks the 1% Rule

It seems that 60% of the residents of Second Life create content, according to Cory Ondrejka, vice president of product development for Linden Lab (owners of SL). 

Compare that to the roughly 1% of people that create Yahoo groups or contribute to Wikipedia (see article about the 1% rule here).

199819025_5472856a50 A few other interesting statistics:  Half the residents are women (just like RL!), and the average age of residents is 33 (those under 14 belong to their own “Teen Grid”).  SL is growing at about 12%, per month and, according to the website today, it has 392,091 residents, who spent in excess of $185,000 in U.S. dollars today (as of 6:00 p.m. SL Time).  The best rate of exchange on the Linden Exchange today (to buy in-world dollars) stands at $312 (Linden)/$1 (U.S.), with an average of L$303/US$1.00.  Today’s total trade volume stands at L$9,938,742. 

Last month (July) the number of transactions (of all kinds) between residents was 5,728,914.

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Virtual Linda

SL Avatar Name: ZnetLady Isbell
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