Business in a virtual world brings $billions with social networks in the lead

Technical and industrial revolution and progress bring us more and more goods and merchandise to purchase. Life proves that people are buying not only to satisfy their daily wants but because they need to spend their money, to give away of what they earn. And virtual goods are a good example. Marketers and retailers can make millions in the sector, though… they actually are already doing it. But we mean that it is a high time for other businesses to seriously consider virtual markets as their another target.

As figures show fashion makers and retailers have offered virtual versions of current in-store clothing, along with links to buy the items in real life, on sites such as Stardoll. Branded items are also available to decorate social network profile pages or to send to friends.

According to the forecasts of Piper Jaffray total US revenues from virtual goods will reach $621 million this year, up 134% over revenues in 2008. Such a trend is expected to go through 2013, according to the “Pay to Play” report. According to the same report in 2013 US virtual goods revenues will reach nearly $2.5 billion.

“Last year, it was likely that the majority of virtual goods based revenue in the US came from virtual worlds,” according to the report’s authors. “However, this year we believe the trend is shifting to more virtual goods revenue coming from social networks.”

However, the shift in the trend is not a result of dropping demand, it is rather an increase in usage within social networks. Strategy Analytics released a research that shows sales of virtual goods and other microtransactions made up 68% of worldwide virtual world Website revenues in 2008. Piper Jaffray expects such revenues to remain significant.

“Nothing says engagement like a flock of avatars crowding a virtual store and showing off their haul in their virtual home,” said Debra Aho Williamson, eMarketer senior analyst. 

However, keeping that engagement up does require some effort. 

“First and foremost, no matter how good your virtual good is, it has to be optimized,” Nir Eyal, CEO of virtual goods platform AdNectar, told eMarketer. “You have to constantly maintain virtual goods, because they get old. Every three days or so, you need to bring in a new item for people to send around.”

Source: eMarketer