Of all the trends at play in the modern economy, few are more significant than the rise of virtual goods. Defined as goods that are bought, sold, and used in digital environments, licensed virtual goods are rapidly growing in popularity and sophistication. The market for them has expanded from a mere $2 billion in 2010 to more than $15 billion today, and has the potential to grow exponentially further. Online content publishers who invest in these goods can make enormous profits off these items, but only if they understand who is buying them. The following five markets generate much of the demand for licensed virtual goods:
The gaming industry is one of the largest markets for virtual goods. Gamers can purchase food, weapons, clothing, medicines, and countless other resources in games, which they use to help their characters achieve key objectives and defeat others. Virtual goods are particularly useful in real time strategy games, where players depend on resources like food and land. By purchasing such goods in the game, players can obtain a competitive advantage over one another and thus bolster their chances of winning.
In addition to competitive games, players often use virtual goods in digital worlds. Games like IMVU and Second Life allow players to create an avatar of themselves that exists within a virtual environment. Many want to give these avatars homes, cars, clothing, furniture, jewelry, and a range of other items that mimic what they have in real life. They purchase all these items as virtual goods. Players are especially eager to purchase virtual goods that have widely-recognized corporate logos, as this can make their avatars seem even more real.
Virtual goods have long helped people on social media platforms to interact with one another in various ways. One popular type of asset for social networking is virtual gifts, which range from cards to badges to flowers and other decorations. Social network users often purchase these items for one another to celebrate birthdays, engagements, and graduations. They also may buy them for themselves in order to embellish their platforms and express themselves.
As people rely on smartphone apps for a growing portion of their shopping and communication activities, companies are starting to sell virtual goods through those apps. H&M, for example, has distributed a line of virtual goods called “the Blues,” which resemble blue denim items that the company sells in its physical stores. Customers can accumulate these items through apps and get a sense of whether they’d like to buy their physical equivalents.
Artists are increasingly turning to virtual goods as a way to reward fans for their support or sell them additional products. Snoop Dogg, for example, has made considerable money selling digital Dobermans. Items like these are frequently sold through video and music streaming services, though they can also be distributed on social media and in apps.
With so many uses for virtual goods, it’s essential that companies leverage this technology to stay ahead in their respective industries. By partnering with BLMP which is building a platform for licensing and tracking virtual goods, brands, content creators and publishers can reap the rewards of this exciting market.
