Reuters, the big international news wire service, announced yesterday that it’s opening a new news bureau. Ho hum, right? Maybe not. It’s opening that news bureau in Linden, the home of Second Life, which is an online video game (more or less).

A new bureau in a video game.

Reuters, a major international company probably not much disposed to flights of fancy or having their employees waste time on video games while at work, has assigned one reporter, full time, to cover the news and events going on in this world (it’s more of a world, really, than a video game. It’s an online simulation of real life).

This might seem a bit weird, or even irrelevant to your business, but it’s not. Second Life, you see, has ties to real-world companies and real-world dollars. In fact, according to the Second Life website nearly US$500,000 is spent in the in-game economy each day. Those are not virtual dollars, but real ones that users deposit to purchase in-game items like houses, investments, and consumer goods from real-world business.

And Reuters isn’t the only company setting up shop in Second Life. Sun Microsystems held a Second Life-only press conference there last week to promote their new initiatives. Again: there was no real-world equivalent, just a press conference in Second Life.

Starwood Hotels, owner of Sheraton and Westin hotels among others, has also is developing a presence there.

And thanks to all the business being done there (there’s advertising, virtual real estate agents and developers, investments, and people who make their whole livings - reportedly over US$100,000 a year - in the game), the U.S. Congress has convened a subcommittee to study whether income in Second Life should be taxed.

Kind of interesting in a “hmmm” sort of way, yes? But also potentially a new avenue for businesses to reach customers, prospects, or even to generate new income. And that’s why I’m mentioning it to you today.

Second Life only has just under 1 million users right now. A good figure, but not a critical mass and probably not worthy of any spending right now. But, when there are 10 million users, or 20 million, won’t it make sense to buy billboards in Second Life? Shouldn’t non-profits set up shop in the game to drive online donations? Couldn’t speakers or consultants hold events there and conquer the need for travel and its cost? Won’t companies who currently spend money on print ads in newspapers want to consider advertising in newspapers in Second Life, where the demographics are likely more favorable and the rates lower?

Second Life isn’t developed enough yet for you to seriously consider marketing in it unless your audience is bleeding-edge earlier adopters or that’s your brand. But keep an eye on it. In the next year or two, assuming that its use keeps growing, it might be.

In the meantime, Second Life accounts are free. Go check it out. Stroll the virtual world. And imagine the marketing possibilities.

This entry was posted on Tuesday, October 17th, 2006 at 11:11 am and is filed under Deep Thoughts, Technology, Business. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.