Judging virtual goods by their cover

Virtual Goods

What are they? Why would you want a “virtual” good? Wouldn’t you want a tangible good? These were the questions popping up in my head as my social media professor announced we’d have to write a blog post about virtual goods.

Definition

Virtual goods enhance consumers’ online gaming experience. For example: Virtual goods may be used to purchase a tractor on FarmVille. Zynga, a leading social network game development company, owns many popular online games like FarmVille and CityVille. All Zynga games must be played through a social networking service (SNS) like Facebook. Redeemed for gaming currency on an SNS, gift cards may be purchased in various stores including Walmart. In addition to gift cards, Facebook and some of its games accept direct payments online.

Brands fear the social media revolution

Social Media Revolution

The increasing popularity and usage of social media is changing the ways brands and consumers are connecting. Whether it’s a direct message on Twitter or a comment of Facebook, relationships between brands and consumers are being created, maintained and strengthened because of social media.

According to the following “Social Media Revolution” video, 93 percent of marketers use social media for business. What about the other seven percent? Despite the positives of utilizing social media, one of the main reasons some brands are avoiding it is because of its power.

“Social Media Revolution” video showcases the power of social media.

Erik Qualman, author of Socialnomics and the video’s creator, said brands don’t have a choice to use social media. “We don’t have a choice on whether we DO social media, the question is how well we DO it,” he said.