Women, Social Gaming, and Virtual Spending: Implications for Second Life™ Businesses

by Sigmund Leominster | December 3, 2009 | No comments

At the recent Social Media World Forum conference held in Santa Clara, California (9th-10th November, 2009), the digital marketing company, Q Interactive, presented the results of a study on how women use an engage in social media. During the two months prior to the conference, the researchers polled over 2000 women with a median age of 37 regarding their involvement with online social networks and online, along with questions about their virtual spending habits.

One of the first findings was that women comprise the majority when it comes to the social media network demographic. They account for 57% of Facebook users and 64% of MySpace users. 49% of them play games over these social networks – such as Farmville on Facebook – and 75% are more active on social network sites than last year. Such growth, the report suggests, has implications for businesses that use social media as a marketing platform.

A second finding is that having access to some kind of virtual currency is important in order to keep people engaged. The 57% figure can be applied to the number of women who earn or spend virtual currency at least once in a day. More specifically the report defines “virtual currency” as something that comes in “the form of points or another reward that can be redeemed for virtual goods within an app or game.” They give the example of “Greenbucks” in the Facebook game, “Green Patches.” They recommend that virtual currency is essential for helping to keep women engaged, as it provides “fun” and an “addictive” element to their online experience.

As regards using real money to purchase virtual currency, only 10% responded that they had done this. Of those who spent real money, 47% spent under $20, 38% spent $20-$100, 9% spent $100-$500, and only 9% spent over $500.

The study did not specifically look at the Second Life® virtual world experience or spending in the Second Life economy but women do seem to be prepared to spend real money on virtual goods without too much worrying.

Dixie Newman is a Second Life resident who shops regularly for in-world clothing and is particularly fond of the designs of Simone Stern, owner of the popular – and profitable – Simone! and Style Starts Here boutiques. She enjoys the whole process of choosing and buying virtual goods and compares it to the real world. “Second Life has saved me thousands of real life dollars. In fact, I can shop in SL® with the money I earn in SL.” And the low real-world cost of Second Life items is also an attractive feature. According to Dixie, “It beats that real life habit of shopping for things you don’t really need but are on sale, or that you think are cute, etc.” And another benefit pointed out by resident Scarlet Silverstar, is that, “there’s more choice in the virtual world, with no size issues – everything fits perfect!”

“Seriously,” offered Dixie, “This is like big girl Barbie™ and we want to dress them up as much as possible. We want them as nice as possible, with skin, hair, clothes, and shoes. It’s beyond Barbie!”
Using virtual money earned in a virtual world is also a feature pointed out in the Q Interactive study. Not only did women use it to advance in online games but also to buy gifts for other people – something that is also a feature of the Second Life buying experience, where almost all sellers provide purchaser with the option to gift items directly to someone else.

A third area that the report looks at is branding. 78% of respondents admitted to signing up for brand information, along with special deals and promotions, in order to receive more virtual currency. In fact, 97% preferred this as a way to get virtual currency above using real world cash. Another feature of choosing brands is that 34% (the largest single group) of the women made the choice based on the content of the offer, not the amount of the virtual currency they would earn.

The main recommendation from the researchers is that “brands have a unique opportunity to engage with women and build relations via social gaming in an efficient, effective, and meaningful way.”
This seems to be especially true of the Second Life economy. Most designers and store owners have their own groups, through which they communicate with buyers. This allows for a very close engagement between the brand owner and his/her clients. Women respond more than men to this closeness. If you buy a dress by Vera Wang in real life, you’re unlikely to end up on her personal cell phone list; however, if you buy a dress from a Second Life designer such as Simone Stern, you are very likely to be talking to her via the group or even one-on-one at her store. This type of interpersonal engagement is much more likely in Second Life than in the real world.

And one last finding to mention from the study is well worth bearing in mind if you are a business owner in Second Life and looking to do profitable business: Women are loyal. 85% use 1-5 games or apps regularly, which suggests an inclination to be loyal to favorites. Of course, the profitable SL business owners probably already know this.

Further information: Q Interactive: http://www.qinteractive.com