Editorial: Will Social VR Companies Have to Turn to Influencers to Promote Their Products?

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Recently, I have become fascinated by a particular kind of celebrity: the YouTube influencer. Yesterday, I watched a video by the successful YouTuber and real estate agent Graham Stephan, who is currently pulling in US$100,000 per month from his YouTube channel alone:

These are people who have been able to attract significant numbers of subscribers to their YouTube video content, and earn hundreds of thousands—even millions—of dollars a year with advertising and endorsement deals. For example, the 28-year-old Swedish YouTuber Felix Kjellberg (a.k.a PewDiePie) earned US$15.5 million last year, according to Forbes.

Now, you might remember that PewDiePie was one of the YouTubers who devoted coverage to the social VR platform VRChat in late 2017 and early 2018, which led to a surge in the number of concurrent users (here is a chart from Steam showing the number of concurrent users of VRChat over time, with an arrow pointing to that surge):

Now, I’m pretty sure that PewDiePie did not sign an endorsement deal with VRChat; he probably just stumbled across it and thought it was entertaining enough to share with his audience of 98.6 million viewers. VRChat was probably just as surprised as everybody else by this sudden spike in users. I remember how they struggled to keep their servers running smoothly to deal with this unexpected onslaught over the Christmas holidays in 2017, and they were eventually forced to implement a detailed safety and trust system to cope with the resulting tidal wave of harassment and griefing on the platform. (Be careful what you wish for, because you just might get it!)

But obviously, PewDiePie and his fellow livestreamers on Twitch and YouTube were a powerful, free promotional tool for VRChat. (The Ugandan Knuckles meme helped a lot, too, by becoming a self-perpetuating cycle that helped popularize VRChat.) While the platform peaked at 28,500 simultaneous users, it has since settled down to around 6,000 concurrent users in recent months, which still makes it the most popular social VR platform so far.

It’s no secret that most social VR platforms are struggling to attract users. According to a statement made by Linden Lab CEO Ebbe Altberg to Forbes about the Monstercat 8th anniversary concert event in Sansar:

Monstercat: Call of the Wild Experience is a VR space where the music label will host artist meet and greets, giveaways, and more. Altberg didn’t give me exact numbers but over a thousand people watched the show in VR via Sansar.

“Tens of thousands of people watched the concert across Twitch, Mixer, and Huya, and over a thousand people around the world attended the event in Sansar – across 6 continents, 65 countries, and 675 cities.  Fans feel more connected and immersed in the music they love, while artists, in turn, effectively reach more people and places in a single day than they’d reach on a real-life tour. “

Now, while I am slightly suspicious at that “675 cities” figure (I always knew you could determine country by IP address, but I wasn’t aware you could pinpoint IP addresses down to the city level), the fact remains that 1,000 users in one day is seen as a major success for Sansar. But compare this with the estimated 600,000 regular users for Second Life. And compare this with the estimated 7,500 users of the adult virtual world 3DX Chat, which, as one commenter noted (here and here):

… 3DXChat. It started as just a sex sim. Then they added building. Then users started building and visiting each others places, instead of paying for sex like they were supposed to.

It’s more successful than High Fidelity, Sansar, and Sinespace put together. About 7,500 paying users.

So, although 1,000 users in one day for one event in Sansar is a significant achievement, it still doesn’t take the platform to the next level, where Linden Lab can really start making money off it.

Which leads to my question: will Linden Lab and other social VR companies eventually have to pay YouTubers and other influencers to promote their platforms to a wider audience and attract more attention? The experience of VRChat was an instructive lesson on the advertising power of influencers like PewDiePie.

Linden Lab has already taken some tentative steps in this direction already, with links to Twitch livestreamers like UmiNoKaiju (which, as far as I know, went nowhere). It would appear that companies would get more of a bang for their buck if they entered into partnerships with people with much bigger followings on Twitch and YouTube. And frankly, that is not cheap. Viral Nation, one of the top influencer marketing agencies, which represents hundreds of successful influencers using Instagram, Vine, YouTube, and Snapchat, is only interested in customers who have a advertising budget in the range of $10,000 to $10,000,000.

Linden Lab and other social VR companies may decide that slower, organic growth is best. However, the pressure to attract a lot of users more quickly using high-profile influencers must be sorely tempting. Will Linden Lab, High Fidelity, Sinespace, and other social VR platforms eventually bite the bullet and sign deals with popular influencers? Only time will tell.

UPDATE Aug. 16th: I have been told that it is, indeed, possible to identify cities by IP address, which I did not know before!

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Linden Lab Enters Into a Partnership with Livestreamer UmiNoKaiju

Remember how I said that Linden Lab needed to develop some more relationships with popular Twitch and YouTube livestreamers to help promote Sansar? (Actually, I said it more than a few times; the link is just to the most recent time I said it in this blog.)

Well, according to the new Sansar community manager, Eliot:

So if you haven’t seen it already, Twitch streamer UmiNoKaiju is doing a partnership with us! She made a video of her customising her avatar, and I bet you will recognise a few of her items 😉

It’s clear from this video that UmiNoKaiju is excited about all the avatar outfit options, and being able to dress up your avatar! UmiNoKaiju has a YouTube channel (with 3,586 subscribers) and a Twitch channel (with 60,080 followers).