The Harvard Business Review on data-mining virtual worlds for fun and profit

The Harvard Business Review has discovered online worlds and avatars --- and, in this piece online here, is set palpably drooling at the marketing opportunities therein. It's a pretty funny piece; since it's written for biz-dev weasels who are total n00bs to gaming culture, the authors are forced to adopt the instantly-recognizable prose style of much mainstream gaming writing: Paper-dry, Britannica-class descriptions of the freaky weirdos they encounter (people who wear "provocative" outfits in Second Life! Or even dress as -- get this -- animals!)
Anyway, the point is, once the article is finished with its obligatory Andy-Rooney spit-takes, it makes some points both fascinating and horrifying. Avatar-based worlds, they point out, are a terrific way to understand what your consumer wants, because as Henry Jenkins notes in a quote, "Marketing depends on soliciting people's dreams, and here those dreams are on overt display." Then there's the matter of the growing piles of greenbacks people are spending online: $5 million in US dollar equivalents each month for avatar-to-avatar virtual purchases in Second Life alone. But where the lid really rips off, the authors note, is in data collection. In a virtual world, everything an avatar does -- literally everything -- is loggable and monitorable. Thus ...
... the amount of marketing and purchasing data that could be mined is staggering. An avatar's digital nature means that every one of its moves -- for example, perusing products in a store and discussing them with a friend -- can be tracked and logged in a database. This behavioral information, organized by individual avatar, aside from being priceless to marketers in the long term, could be processed immediately. An avatar clerk might appear from behind the counter and offer to answer an avatar customer's question -- questions the clerk would already know because they would have been gathered and recorded in the database.
Furthermore, the avatar clerk might automatically adjust his or her behavior to become more appealing to the avatar customer. Research conducted at Stanford University's Virtual Human Interaction Lab has found that users are more strongly influenced by avatars who mimic their own avatars' body movements and mirror their own appearance. This virtual manifestation of an old sales trick makes avatars potentially, if insidiously, powerful salespeople. Using a simple computer script, the selling avatar clerk is able to subtly and automatically tailor its behavior -- its gait, the way it turns its head, its facial features -- to the avatar buyer's, thus making the clerk seem more friendly, interesting, honest, and persuasive.
Jesus, now even the marketing trolls are reading and quoting Snow Crash. We're doomed.
(Thanks to El Rey for this one!)
Posted by Clive Thompson at June 25, 2006 12:52 PM
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I love that last sentence - "Using a simple computer script..." I can see some poor coder being harangued by a marketing droid for a "simple script" to implement half of the Turing Test. Just a Small Matter Of Programming, as they say.
While I'm de-lurking, I just want to say I've been reading your blog for quite a while, and I think it's great. Keep up the good work!
Posted by: John Pallister at June 25, 2006 3:05 PM
Heh, even assuming the gamers talked in grammatically correct sentences without slang.
Posted by: Jeff Liu at June 25, 2006 3:19 PM
John, yes, I laughed out loud too at the authors' blithe assumption that we'd just sorta, y'know, cracked the whole "life-like A.I." problem. Man, Dell can't even its real-life tech-support people to behave like actual humans. (Glad you like the blog, by the way!)
Jeff, heh.
Posted by: Clive at June 25, 2006 8:24 PM
Good stuff – though I was somewhat disappointed to see that, because your blog is written for an audience of geeky game lovers who know nothing of the critical need to keep the wheels of commerce greased and humming, you were forced, like most bloggers of your ilk, to steer clear of important virtual world issues such as supply chain management, organizational core competencies, and business process reengineering and instead had to restrict your comments to the boorish guffaws and sophomoric slang -- “biz dev weasels,” “Andy-Rooney spit-takes” -- that your non-executive readers no doubt want and expect from you. It’s important we remember our audience, but….
(Okay, I’m JOKING, all right???!!!)
Actually, enjoyed your piece and the comments. (I love the SMOP comment.) Missed you at the roundtable discussion on avatar-based marketing in SL last Friday. Oh, and enjoyed your State of Play III interview on the Terra Nova site. Count me as a new reader of Collision Detection!
Posted by: hempman richard at June 28, 2006 12:15 PM
Ahahha! Actually, having done business journalism for the last 10 years, I actually do have enormous interest in those very gears of commerce. I subscribe to David Olive's theory of business -- that it brings the best impulses of people as often as it brings the worst. In this case, the absolute cackling over monitoring people struck me as, yeah, kinda surreal.
Glad you liked the State of Play stuff, and the blog!
Posted by: Clive at June 28, 2006 12:26 PM
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I love that last sentence - "Using a simple computer script..." I can see some poor coder being harangued by a marketing droid for a "simple script" to implement half of the Turing Test. Just a Small Matter Of Programming, as they say.
While I'm de-lurking, I just want to say I've been reading your blog for quite a while, and I think it's great. Keep up the good work!
Posted by: John Pallister
at June 25, 2006 3:05 PM
Heh, even assuming the gamers talked in grammatically correct sentences without slang.
Posted by: Jeff Liu
at June 25, 2006 3:19 PM
John, yes, I laughed out loud too at the authors' blithe assumption that we'd just sorta, y'know, cracked the whole "life-like A.I." problem. Man, Dell can't even its real-life tech-support people to behave like actual humans. (Glad you like the blog, by the way!)
Jeff, heh.
Posted by: Clive
at June 25, 2006 8:24 PM
Good stuff – though I was somewhat disappointed to see that, because your blog is written for an audience of geeky game lovers who know nothing of the critical need to keep the wheels of commerce greased and humming, you were forced, like most bloggers of your ilk, to steer clear of important virtual world issues such as supply chain management, organizational core competencies, and business process reengineering and instead had to restrict your comments to the boorish guffaws and sophomoric slang -- “biz dev weasels,” “Andy-Rooney spit-takes” -- that your non-executive readers no doubt want and expect from you. It’s important we remember our audience, but….
(Okay, I’m JOKING, all right???!!!)
Actually, enjoyed your piece and the comments. (I love the SMOP comment.) Missed you at the roundtable discussion on avatar-based marketing in SL last Friday. Oh, and enjoyed your State of Play III interview on the Terra Nova site. Count me as a new reader of Collision Detection!
Posted by: hempman richard
at June 28, 2006 12:15 PM
Ahahha! Actually, having done business journalism for the last 10 years, I actually do have enormous interest in those very gears of commerce. I subscribe to David Olive's theory of business -- that it brings the best impulses of people as often as it brings the worst. In this case, the absolute cackling over monitoring people struck me as, yeah, kinda surreal.
Glad you liked the State of Play stuff, and the blog!
Posted by: Clive
at June 28, 2006 12:26 PM