Virtual goods- The new frontier for business?
Purchasing goods. In the past, this meant buying something that was tangible or substantial. However, in recent years, businesses have found that with the increasing market in new media, charging real money for pixels on a computer screen was raking in dollars. Estimates have global virtual goods generating approximately US$3.1 billion annually with the figure set to increase to US$6 billion by 2013. (Rusak, 2010)
These goods come in the form of items to improve their performance in virtual games such as Farmville and Pet Society. These virtual games run in real-time. Therefore, people who value time and want to play at a faster pace, spend money on such items.
The selling of virtual goods might seem like a swindle, as it carries no actual value in the real world. (Miller and Stone, 2009)
Some parents however, view this differently. One family spent $20 on virtual currency to buy goods and compared it to buying toys from department stores. (Miller and Stone, 2009)
Virtual goods seem like the new frontier not only for big brands but smaller businesses. As with real-world marketing; it helps get their brands across to their target public with minimal production cost, unlimited shelf life and no shipping fees.
References
Clair C. Miller, Stone, Brad. 2009. “Virtual Goods Start Bringing Real Paydays.” The New York Times. Accessed March 18, 2011. http://factiva.com/.
Leong, Susan. “KCB 206 New Media: Internet, Self & Beyond: Week 3 lecture notes.” Accessed March 18, 2011. http://blackboard.qut.edu.au/.
Rusak, Gary. 2010. “Real revenue in virtual goods.” KidScreen. Accessed March 18, 2011. http://factiva.com/.
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