The Avatar AgeEntertainment and Advertising in the Future

October 11, 2007

What is Millions of Us?

The world’s leading agency helping brands connect with large online communities, virtual worlds and social networks

Millions of Us: Key Clients

• Toyota• General Motors• Mini• Sun Microsystems• Coca Cola • Intel• Microsoft• Comcast• CNN• Warner Brothers• HBO• 20th Century Fox• Diageo• Budweiser

What is an Avatar?

Now, an online persona

In Hindu lore, the earthly form of a God

The Disappointing Internet

What I expected: 1997

What I GotWhere are the people?

Virtual WorldsFrom Habitat to Second Life

1985 2005

10,000 Foot View of Second Life

• 9,688,000 residents have built the entire world *

• Growing 20% monthly

• 55% Male/ 45% Female

• 35% US/ 65% Overseas

• Avg. Age = 32

• Usage Patterns Avg = 14 hours per month

• $US 550 million per year in user-to-user transactions*

• Most popular activities are social (Games, parties, concerts, etc.)

• Last updated 2007-9-25

20+ Million Hours/Month of UseEscape, Entertainment, Education, Work

How Big Can This Get?Second Life Growth

ProjectionsPROJECTIONS THROUGH AUG. 2008

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

8% Monthly

15% Monthly

Who spends $550 Million on Stuff that Doesn’t

Exist? Digital music is “virtual”

Software is “virtual”

When you spend 30 hours a month somewhere, you better look cool

Houston: We Have a Problem

Authenticity and Advertising• Only 24% of U.S. residents trust what companies tell them

A Statistic to Ponder

User- generated, social communities represent the fastest growing market segment totaling 31% of all consumer Internet usage

(Comscore, 2007)

The Programming Grid of the Avatar Age

Virtual Worlds BlogsUser Created Content Communities

Social Networks

Younger

Older

Audience Age

Other Worlds100 Million and Growing. . . .

Habbo Hotel: 32 million users Gaia Online: 8.5 million users

Zwinktopia: 10 million users Stardoll: 8.5 million users

Some Predictions for 2008

• Social networks will become “Avatarized”

• Virtual worlds will become more like social networks

• Television tie-ins will increase for virtual worlds

Where it all BeganPhilo T. Farnsworth: 1928

Fast Forward: 2007Across the Street: 1100

Sansome

And So It Began. . . . .The gentle blue glow

Meanwhile. . . . .

550 million automobiles by 2002

What Happened to Communities?

First StepsBrand Translation

Case Study: Pontiac Motorati

• 96 acres of land of largely user created “car culture”

• From Jay Z to Monster Trucks

• Extremely passionate and active community

• #2 trafficked corporate region in Second Life

Case Study: Microsoft “Coder’s Cove”

•Launched Island and complex social game for Visual Studio on 5/11/2007

•Average participant engagement >23 hours. Winners engaged >72 hours

•Definitive case study for active user engagement and targeted community development

Campaign SummaryWWE SummerSlam in Gaia

September 2007

Forum ReportingWWE SummerSlam in Gaia

Totals for 7 Days (8/20 - 8/26)

Unique Users Posting in WWE Forum: 12,401

WWE Forum Threads: 2,879

WWE Forum Posts: 26,275

WWE Forum Page Views:

847,016

Unique Visitors to WWE Forum:

198,608

Cena Hats Granted: 92,630

Triple H Sledgehammers Granted: 55,824

Orton Chairs Granted: 42,677

Virtual Worlds Meet Television

Gossip Girl by Warner Brothers

Telling Stories in Virtual Worlds

What is Scion City?

Thank You