Dividends in virtual property

SOME of Australia's biggest brand names are rushing to join the multinational companies seeking exposure in the virtual world of Second Life.
Telstra will launch its presence later this month through BigPond, becoming the first major Australian corporate to embrace the virtual world, which boasts more than three million members.

Taxpayers are also investing, with the Queensland Government funding the purchase of a virtual island through the University of Southern Queensland.

The ABC is also moving in, having purchased an island in the shape of the ABC logo with a view to giving Second Life residents a chance to make the most of their "8c a day" in the virtual world.

Second Life was created four years ago and allows people to create virtual versions of themselves, known as avatars, in the game and then live second lives online.

People can create businesses, own land and even convert the game's currency, linden dollars, to real money using an exchange rate of 270 linden dollars to $US1.

Telstra has brought three islands in Second Life for an undisclosed sum, plastering them with BigPond branding and creating representations of the Sydney Harbour Bridge and Uluru. Second Life charges $US1675 ($2169) for each island, with a monthly maintenance fee of $US295. BigPond spokesman Craig Middleton said the launch date for BigPond's The Pond had yet to be finalised but work on creating the islands was well under way.

"We are extending into the new spaces that are emerging," Mr Middleton said.

"We think we will be the first Australian corporation interacting with the online community in this way. It is largely experimental, but it is also interesting."

Construction of the ABC website is also well under way and Tourism Australia, too, has plans to set up in Second Life.

Big name brands that have already invested in creating a presence include BMW, Nissan, Adidas, Sony BMG, Dell and ABN Amro. Russel Howcroft, chairman of the Advertising Federation of Australia, said the decision by Australian companies to set up in Second Life was simply a question of "going where the people are".

"It is exposure in a new market and beyond that it is turning into a commercial market," Mr Howcroft said. News agency Reuters has perhaps the highest profile presence, establishing a virtual bureau in the game and appointing a correspondent.

This week at the World Economic Forum in Davos, several world and business leaders were interviewed by Reuters in Second Life. However, while Australian companies are beginning to turn their attention to the game, questions remain about just how many Australians are playing.