Paying With Personal Information - An Emerging Trend of Currency Monetization in the Virtual Economy

Virtual currency has emerged as the lifeblood ofoperations and the security. His vision was to
online games, social networks, and virtualcreate an interface that satisfied the extensive
communities. In order to subsidize developmentneeds of advertisers and site owners, but more
and recurring operating costs, currency demandimportantly, provided a game-like feel for users.
needed to be created to ensure the financialThe importance of providing a visually appealing
stability and longevity of the projects. Webconnection point for users to interact with
properties needed a value system that was bothadvertiser offers was seen as a key
stable and flexible. It needed to cater to people ofdifferentiator and a way to dramatically increase
all income levels. Selling "credits" in a marketplaceuser participation and the quality of information
for limited virtual goods emerged as the mostprovided to advertisers.
viable solution to this necessity. By providing"It is paramount that companies like ours remain
numerous methods of attainment, players couldfocused on the user experience, particularly as it
choose how they spent their personal resourcespertains to online virtual worlds. Massively
(time and money) in their pursuit of theMultiplayer Online Role Playing Games are
accumulation of credits.immersive and to that end, Blvd Media intends to
This emerging advertising model shifted the costcomplement, not confuse, the virtual landscape."
of credits from players to advertisers withoutsays King, whose company has seen double-digit
compromising the virtual economy. The moneygrowth every month since the launch of the
flowed from the advertiser through to the siterewardTool in May, 2009. "I believe that we will
owner, while the virtual credits flowed from thesee free-to-play marketplaces grow exponentially
site owner to the player. This complex transaction-- especially in today's economic climate. Inasmuch
needed additional technological components inas the Internet strives to shrink the world, the
order to automate the transactions, create areality is that a global marketplace has to prepare
critical mass, and increase the likelihood of returnfor, and ultimately behave as though, the Internet
player participation. The transaction also neededis a very big place. Regrettably, there are nuances
multiple layers of security and fraud prevention into being a global technology company, and
order to protect the integrity of the informationsometimes those nuances get lost. This is where
and credit exchange.Blvd Media lives; it is our belief that there is no
The demand for a transaction clearing house"owning" the space, but rather we must develop
created an opportunity in the marketplace forthe space... relentlessly."
technologically advanced advertising networks thatVirtual currency has proven to be a universal
could innovate around the needs of the siteincentive to consumers in all countries. Advertisers
owners, advertisers, and users. While having onehave embraced this model by spending over six
player, in one country, participating in onebillion dollars a year on the acquisition of user data.
advertiser offer, and being rewarded one credit, isAs new and more advanced games, social
the simplest form of the transaction, complexitynetworks, and virtual worlds are developed, this
emerges when thousands of players from everyspending trend is expected to remain steady.
country are interacting with hundreds of offers atUsers continue to earn credits and enjoy the
the same time. This complexity grows furtherpremium site experience at the expense of
when the player demand for daily new offers isadvertisers. This model subsidizes user spending
high. The technological intricacy to not onlyand justifies the development of more advanced
facilitate multiple simultaneous transactions, butweb properties.
also add additional components such as complexIronically, the companies that will ultimately endure
security layers, geographical user targeting,will develop relationships with advertisers,
advanced reporting features, interfaceaggregators, and networks around the globe
customization, and real-time monitoring created alooking for the particular information each locality
new industry dedicated to ensuring the long-termhas to offer. In a way, this will end up being a
success of this emerging monetizationviral movement, not sparked by the advertiser -
methodology.but rather by the player, or digital persona, or
Martin King, CIO and Chief Scientist of Blvd Mediaperhaps even the trends, in an entirely alternate,
Group was the architect of the next generation,digital universe. After all, where there is a demand,
virtual currency monetization system called thesupply will be identified and commerce will be
rewardTool. He recognized that the usercreated.
experience was as important as the transactional