In the last eight months, Second Life has grown like wildfire. Even since May, the world’s total number of avatars has grown from around 6 million to more than 8 million. This growth has made Second Life far and away the largest virtual social interaction world. And with so many brands in-world it looks like Second Life is running away with the competition. Hold up. For users interested in social interaction in virtual worlds, there may be life outside of Second Life.

As of June, more than 50 corporations use and have established a presence in Second Life. Just as some businesses have gotten in, though, some are jumping out. Wells Fargo recently left, and Starwood Hotels has plans to leave as well. Part of the reason is that as the world has gotten so big and there is such stiff competition for brand recognition, some companies are having trouble sustaining avatars’ attention. This could be good news for worlds like There.com, Kaneva and even China’s HipiHi.

Both Kaneva and HipiHi are still in their beta testing stages. However, There.com has emerged as a very possible alternative to Second Life, showing a significant amount of promise.

One interesting aspect of There, which currently has around one million users, is that they are targeting a slightly younger target audience. Many worlds - such as Second Life, HipiHi, and Kaneva - are shooting for the 18-to-34 demographic. More than two-thirds of There’s users are between 13 and 26. There also places higher restrictions on user-generated content. For instance, all objects created in-world must pass a review to ensure all content is appropriate (There is bound by PG-13 style content). Also, all clothing designed for avatars must follow “minimum coverage requirements.”

Despite a slightly younger target audience, There IS similar to Second Life because it is a true social networking world, not a game (like RuneScape  or Entropia Universe  where users are focused on tasks and objectives). There considers itself a true social networking destination, pitching the world as a place where users can “hang out and make new friends.” Some of the There’s activities include card games, a race track where users can challenge each other, paintball and trivia contests - all of which encourage social interaction. Despite having only a fraction of the users of Second Life, There is able to offer a world with more extensive social interaction opportunities.

In order to separate themselves from Second Life, There must find a niche as a better environment for close-knit social interactions. Users will be drawn to There if they will have a better social experience. However, There still has to focus on luring big brands to establish a presence in-world:

1. The more brands There is able to lure in, the more revenue the site will generate.
2. Users are more likely to stay if popular brands are present. Some analysts say it’s the numerous brands in world that have made it effective.

Ideally, There will find a balance as a world that places a premium on social interaction and one that is a home to big brands.

Marketing in There

The deal that There struck with MTV was consequential in the world’s continued growth. MTV originally started in Second Life, but has since jumped ship to create online environments that better complement its TV series. MTV hired There to create the sponsored worlds the Virtual Laguna Beach, and, more recently, a virtual version of The Hills. In these worlds users can hang out with the real-world cast of the popular MTV shows. “MTV networks is the first to recognize the potential for using social virtual worlds to enhance the viewer experience and build a stronger bond with the audience,” said Michael Wilson, CEO of Makena Technologies, the creators of There.

Earlier last month, There yet again made headlines by partnering with Capitol Music Group. The partnership between There and Capitol Music Group works almost exactly like the partnership between BMG and Second Life. As part of that deal, BMG brought in artists like Ben Folds and Talib Kweli to perform on Media Island in Second Life, a complex that BMG opened. Through this project, Folds was able to promote his new album with two live performances.

The Capitol project will bring in stars like the Beastie Boys, Korn, Yellow Card, and rapper MIMS to perform in The Tower, a new nightclub that Capitol recently purchased from There. As an added perk for both users and performers, during each virtual show fans can purchase both virtual and real world band gear, ranging anywhere from a virtual t-shirt to an actual CD.

Capitol is very optimistic about the possibilities of the partnership. “We know that consumers are spending a lot of time in virtual worlds and There.com offers a completely new way to promote music, both emerging talent and recognized artists, allowing artists to really connect with their fan bases,” said Syd Schwartz, senior vice president of digital strategy for Capitol. “Virtual worlds also give us a new revenue channel to promote our artists and sell virtual and real branded merchandise to customers.”

Perhaps netting these projects represents a real advantage for There. Looking back at HipiHi and Kaneva - they each show strong potential for different reasons:

• Kaneva is one of the first worlds to blend aspects of a 2-D social networking site, such as MySpace or Facebook, with aspects of a virtual world.
• HipiHi is geared towards a booming Chinese population and has been dubbed the “Chinese Second Life.”

However, because both are still in the testing stage, these worlds are relatively unknown - pushing There far ahead of Second Life challengers. I believe it’s only a matter of time before we see more brands launching in There. And with the rest of the competition looking up at Second Life, it is unlikely that they will catch up any time soon. However, with smaller worlds continuing to grow, it is likely that brands will see that Second Life is not the only world in town.