The document summarizes a presentation titled "Virtual Worlds & Business: What's The ROI?" given on March 10. It discusses various myths around virtual worlds, including that they are declining, have no users, users don't spend much time, and are only for kids or games not business. It then outlines several virtual world marketing models used by businesses, such as static advertising, promotions, virtual goods, dynamic in-world advertising, branded spaces, and virtual worlds created for advertising.

1. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Moderator | Gary Hayes Presenters Gary Hayes | Director LAMP@AFTRS & CEO MUVEDesign Jeff Brookes | Regional Director - Asia Pacific, Sulake Corporation Mitch Olsen | Co-Founder, SmallWorlds

2. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Gary Hayes | LAMP@AFTRS & CEO MUVEDesign (lamp.edu.au & muvedesign.com)

3. ABC Island Deakin Arts Island Thursday’s Fictions BigPond Telstra US Fortune 100s Melbourne/Cog/AFTRS etc: Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

4. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

5. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? 1. Layered Worlds © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

6. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? 2. Browser Worlds © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

7. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? 3. Client Worlds © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

8. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? 4. Console Worlds © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

9. Press hyperbole or myths? Virtual Worlds are on the decline? There’s no one in them? & people don’t spend long there? They are for kids or social ‘games’ not business? There are no marketing models? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

10. Virtual Worlds are on the decline? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

13. There’s no one in them? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

14. Habbo Hotel 12m Stardoll 13m Nicktropolis 5.5m Webkinz 5.5m Club Penguin 6m 300 million globally in social virtual worlds Habbo & WoW - 100 mill registered Runescape - 7 mill active, 140k at once Entropia - 700k reg, plan 15m concurrent! Second Life - regularly at record breaking concurrency of 70k 60% of American’s play video games - 40% are women Neopets 6m Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There’s no one in them? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

15. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There’s no one in them? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

17. & people don’t spend long there? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

18. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? & people don’t spend long there? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

19. They are for kids or social ‘games’ not business? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

20. They are for kids or social ‘games’ not business? Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Virtual Worlds are partly about Lifestyle Marketing but… © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

21. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? They are for kids or social ‘games’ not business? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

23. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? They are for kids or social ‘games’ not business? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

24. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? They are for kids or social ‘games’ not business? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

25. Videogame advertising, both in and around game, is effective in driving attention and recall * Three-quarters of gamers notice ads while playing video games * 75% of gamers engage with at least one ad per minute * 81% of gamers engage at least every other minute * ½ second ad exposure is sufficient for a gamer to notice an in-game ad Most gamers believe that ads in games add to the realism and overall experience of playing video games and can have a positive impact. * "It's fun to see things in games that are real." * "Like in Ghost Recon, you have the Dodge billboards in the urban areas, and I think that is pretty effective... it adds realism because, you know, you see ads in the real world" * "I think being in a game is way better because in TV it can sometimes annoy you and stuff and can have a negative effect on a product. But in a game, I think it has a positive effect." Source: Videogame Advertising Engagement Study, July 2007 Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

28. 2. Promotions & Sponsored events Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

29. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Source: Betsy Book AAAS There are no marketing or ad models? 3. Virtual Goods and Product Placement © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

30. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? Dynamic InWorld, InGame Advertising © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

31. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? 5. Branded Spaces © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

32. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? 5. Branded Spaces © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

33. 6. AdverWorlds & AdverGames Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

34. "Now our audience can 'live' Laguna Beach: The Real OC by immersing themselves in a next generation hybrid of TV show and virtual community " says Matt Bostwick, SVP Franchise Development MTV Music Group. "The virtual world will expand and grow with the show in real time. This will enable the audience to take our content as a starting point and create their own drama. In effect, the audience becomes the content. We created a first class 'virtual team' to implement this consisting of Makena Technologies, Imaginary Forces, The Electric Sheep Company, Analog Protocol and Extra Large Technology to make it happen in record time." Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

35. Football Superstars is the world's first Virtual Football World. An entire online virtual world designed by football fans exclusively for football fans, where you can enjoy a massively multiplayer experience on your PC. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

36. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

37. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

38. Ad:tech tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? There are no marketing or ad models? © Gary Hayes | lamp.edu.au www.muvedesign.com gary . [email_address] . edu .au or gary@muvedesign.com

39. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? THANKS

40. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Jeff Brookes | Regional Director - Asia Pacific, Sulake Corporation (habbo.com.au)

41. Sulake Corporation | Strictly confidential - legally protected and privileged information

42. Don’t Interupt - Add Value Sulake Corporation | Strictly confidential - legally protected and privileged information

43. Add Value. Make Something Fun – Coca-Cola Pool Party Sulake Corporation | Strictly confidential - legally protected and privileged information

44. Shared Experiences Sulake Corporation | Strictly confidential - legally protected and privileged information

45. Enhance the Experience Sulake Corporation | Strictly confidential - legally protected and privileged information

46. Sulake Corporation | Strictly confidential - legally protected and privileged information

47. Feedback, Repeat & Amplify www.habbotiles.net www.habbalot.net Sulake Corporation | Strictly confidential - legally protected and privileged information

48. branded content distribution brand amplification brand interaction Feedback & repeat Adds value Seek, acquire & enhance experience Shared experience Sulake Corporation | Strictly confidential - legally protected and privileged information

49. Measuring Success When user buys virtual form of your brand When user shares that item with others Time spent interacting with brand Amount of talk around the brand Number of consumer initiated associations Sulake Corporation | Strictly confidential - legally protected and privileged information

50. tuesday march 10 3:45pm - 4:35pm Virtual Worlds & Business: What's The ROI? Mitch Olsen | Co-Founder, SmallWorlds (smallworlds.com)

51. Hi I’m Mitch Olson

52. A society born in gaming

55. Avatar Examples (Guys)

61. The internet is changing our world The power to define & control a brand is shifting from corporations to individuals & communities

62. My core premise Engagement & Interaction Loyal customers

64. Participation is key Make the consumer a meaningful participant in an experience of your brand

65. Employ Game Mechanics The systems & features that make games fun, compelling & addictive

68. What are game mechanics