Virtual Worlds, Goods, And Currencies Exploding (And Imploding A Little Too)
Hundreds of millions of real dollars are flowing in and out of virtual economies, creating fun ways for people to interact via social games. Some of those millions having been flowing into the pockets of the unscrupulous, putting legitimate companies and advertisers at a disadvantage . We attended the Virtual Goods Summit in San Francisco and enjoyed immensely the panel discussions and conversations about this exciting and rapidly growing sector of the social web. Being pioneers in the creation of engaging games and activities as part of larger marketing efforts, it's exciting to watch this industry mature, albeit not without some growing pains. Overshadowing some of the innovations and success stories presented at VGS at the end of October, have been the ongoing "ScamVille" posts on Tech Crunch that lead to the replacement of a founder/CEO at her own company, and possibly to class action lawsuits against big players like Zynga, and even Facebook. Hopefully the outcome will be a high-quality channel for advertisers to find and engage consumers, and for those consumers to be able to play safely. This may happen quickly if all the players in the space follow the lead of new Offerpal CEO George Garrick who has moved quickly to admit wrong-doing and implement a quality rating system for advertisers. Read the whole thread on Tech Crunch here. Whether or not you agree with Michael Arrington's approach to journalism, it is entertaining reading.
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