Virtual world paves way for brands to make profits

Bangalore: While people are paying hard money to buy nonexistent things over the internet, it hit some organizations that they can raise awareness of their brand and also sell more goods through this medium. Companies are mulling over the option of creating and offering their own pretend commodities.

Some of the early adopters of this trend include the names of MTV Networks, Volvo Cars of North America, and others. In the market of virtual goods, these companies offer make believe items on SNS, smartphone apps or fantasy Internet sites.

Marshal Cohen, Chief Retail Analyst, NPD Group, a market research company, said, "It's all about constant connectivity. People live in real time, and established brands have to find ways to keep in touch."
Brands are trying to reach out to the under 40 crowd. Till now the market of virtual goods has seen mostly micro purchases.

Consumers typically pay $1 to $3 while playing games like 'FarmVille' or 'Mafia Wars', both created by the social-gaming company Zynga, to get a jump on game rivals. Users also can give a gift, like flowers, or build a collection of items - just as collectors do in real life.

As per ThinkEquity, a financial research firm in San Francisco, the worth of this market would reach up to $2 billion in revenue or more this year.