Google Takes Over Your World(s)?

It’s been established that Google is taking over the world. Now, the firm’s ambitions could extend its reach over to the virtual world too.

Reuters reports that "Google’s long-anticipated foray into virtual worlds seems to be gaining speed, according to the discussion at the Virtual Worlds Forum in London last Wednesday."

“The company has already announced a partnership with Multiverse which will allow users to create their own virtual worlds by combining Multiverse’s technology with 3D data from Google Earth and Google SketchUp. And word has leaked about a mysterious project that Google is field testing at Arizona State University.”

In response, a spokesman from Google said: “We’re always looking for new ways to help our users connect with each other, share information, and express themselves, but we don’t have any new details to share at this time.”

One thing clear is that virtual worlds are big business. Online advertising is booming, with a growing number of companies--from Reuters to IBM -- promoting their brands in these make-believe worlds.

According to an article in BusinessWeek, subscription sales from online virtual worlds rose to $526 million in North America in 2006, media consultancy Screen Digest said. And consultancy Gartner predicts that 80 percent of active Internet users will join a virtual world by the end of 2011.

Google – true to its name – has been unrelentless in its lookout for new business opportunities. We can only speculate on the kind of virtual world Google will create. Right now, I see two possibilities: Google could leverage on the technology behind its electronic armada of services such as Google Earth to blend a virtual world around a real one or acquire an existing virtual world website, rather than build it from scratch, which could take an extensive time.

If Google does indeed acquire an existing virtual world, it could be one catered to kids and teens, a demographic that advertisers want to target. BusinessWeek said that some of the most successful virtual worlds include Webkinz.com, a site where children care for virtual pets and play online games; RuneScape.com, where users can explore haunted mansions and join other knights in battles and Club Penguin, where kids can chat with their friends' penguin avatars in icicle-covered cafes.

The article said that Webkinz, for example, has seen its share of Web traffic rise by 1462 percent in the past year, according to Hitwise.

“The virtual world, owned by closely held toy and accessories manufacturer Ganz, now commands a greater share of Web traffic than Second Life and the World of Warcraft online community combined. Ditto for Club Penguin, whose traffic share jumped by more than sevenfold in the past 12 months. Its share is also higher than Second Life's and World of Warcraft's combined,” BusinessWeek said.

The article also said: “And while Second Life has come to typify the rise in popularity of virtual worlds, it may not be among the most attractive target, some analysts say. In April, Second Life didn't even break into the top 10 most popular virtual worlds, as measured by percentage of traffic, or market share of visits, according to consultancy Hitwise.”

If Google blends its virtual world with the real world, it could duplicate its ads in the real world. For example, someone seeking the services of a virtual realtor could also view ads for real-life realtors. Or someone using a virtual dating service could be linked to real-world dating companies.

P.S. Even countries are muscling into the virtual universe. The Associated Press reported that "China's government is building a vast virtual world dubbed Beijing Cyber Recreation District, which founders say will help the manufacturing superpower evolve into an e-commerce juggernaut." Yikes, as if we don't already feel like we're living in the Matrix.