Marketing in the Virtual World: Yay or Nay?

I had an interesting conversation recently with an executive at a large SF-based financial/investment services firm about marketing outreach in the web2.0 world and in particular, interacting with consumers in the virtual space. Web2.0 marketing has been a big topic over the last year and the subject of virtual-world interaction is increasingly gaining discussion ground in many of the marketing forums I’m involved with.

My question to this executive: how relevant is the virtual space for reaching potential customers and what’s the opportunity? And honestly, I was surprised at how quickly the idea was scoffed.

Her take on emerging technology or new marketing vehicles is: it’s only relevant for a brand like Apple - known for (and rather expected to be) innovative and trendy in their marketing solutions – to jump on the bandwagon of emerging technology but the question other companies need to ask is “how relevant is that space for our company and how does it mesh with our brand”.

Hmmm…interesting position and not without valid points but it seems to me to devalue the potential for connecting with your audience in a new way, not necessarily pushing products or services mind you, but rather interacting in a community-minded way (er, a virtual way) in an environment that they’re comfortable with. What’s so innovative and trendy about that?

The virtual space still has significant growing room to go through and it’s still very unfamiliar territory for many marketers and users (particularly as I’ve found in the financial services arena) but here’s my take: if the objective of today’s marketer is to “connect” and “engage” - emerging technology shouldn’t be relegated to the idea-bucket for only those brands whose message resonates with innovation and “coolness” but rather the question should be asked:

Where is our audience going and how can we build a presence and engage them in these places intelligently and “comfortably”.

Companies like Pontiac, IBM, and even Sears have put their brands out in Second Life and with now nearly half a million Second Lifers logging on weekly and roughly a million logging on each month – such a new possibility only has upward growth. The average age of users is 32, and the median age of users is 36 – for most financial and investment services firms, that’s very relevant.

In a world saturated by direct mail, email and online advertisements, I think it’s necessary for marketers to at minimum consider it’s possibilities. Your marketing approach and marketing message needs to be carefully addressed but ignoring these emerging vehicles seems to me to be sticking your head in the sand by way of enslaving yourself to traditional outreach methods that are already overrun.

Update: I'm not devaluing the use of traditional marketing tactics; Not at all. They're invaluable and their effectiveness is measurable. However, diversification of your marketing plan is essential if you want to keep up with your consumer-base (what they're doing and where they're going) in order to expand your brand reach and remain engaged.