Virtual Currency: an exciting new communications model in social media

I attended another social media seminar recently, hosted by Adknowledge. One of the most interesting developments is a new advertising model, which leverages consumers' love of online casual games. The new model of "Virtual Currency" is worlds apart from the type of "push" advertising that people find increasingly obtrusive in social networks.

The games, such as Mob Wars on Facebook and MySpace's Be A Tycoon, appeal across the spectrum of social media users, in other words they're mainstream, attracting large, valuable audiences.

Virtual Currency works through offering people rewards that enable them to have a richer experience in their favourite games. So, for example, in Mob Wars, they would acquire greater energy or weapons. It helps people do what they want, in the environment they want to do it.

Advertisers can offer virtual currency as a reward, in order to get people to do things that benefit their brands. It's like an exchange system. For example, advertisers can offer currency and in exchange, consumers would:

• trial a product
• sign up for more information
• subscribe to a service
• download an application
• take part in a survey

Thus, Virtual Currency facilitates multiple marketing tasks, including, lead generation, distribution, encouraging trial and purchase. Given that consumers are already in social networks, they'll also tell their fellow game players, generating additional "Earned" media.

I'm excited by Virtual Currency. As a way of communicating, it's in keeping with consumers' natural behaviour; it doesn't fight it or try to muscle in. And it takes brands to where the people are, in a natural and helpful way.

For more information, see the presentation below, delivered by Brett Brewer of Adknowledge:

Virtual Currency And Monetizing Social Media

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