STRATEGY ANALYTICS Examines Virtual Worlds ROI

Total Economic Returns (TER) Strategies Explored
BOSTON--(Business Wire)--
Strategy Analytics today released, "Defining the Total Economic
Return from Virtual Worlds Applications," which guides companies in
terms of expected returns from virtual worlds investments. "Virtual
Worlds have witnessed considerable growth among consumers, but
companies have lacked the economic justification, metrics, and process
to guide investments," according to Harvey Cohen, President of
Strategy Analytics and chief architect of the study.

Barry Gilbert, Vice President and Research Director of the
Strategy Analytics Virtual World Strategies program, adds, "Companies
will require more specific measurement tools in order to continue
their investments in virtual worlds."

This report finds that many companies have found that investments
in virtual worlds have not met expectations. Their problems begin with
poorly implemented media strategies that do not include virtual worlds
as part of an integrated PR and promotional effort, and end with a
lack of understanding of the appropriate metrics for assessing
economic impact. In addition to a five component total economic return
(TER) model, Strategy Analytics examines the primary and secondary
benefits of virtual worlds and provides a process for evaluating
investments based on both hard and soft benefits. "Virtual worlds can
serve as a strategic catalyst for penetrating youthful markets as well
as a checkpoint for demonstrating a company's focus on innovation,"
said Cohen.

While companies can access virtual worlds with a small development
investment, they often find that building and sustaining consumer
momentum requires an on-going budget of at least 60% of their initial
investment. "Multi-billion dollar global brand companies looking to
target the global youth market should be investing a minimum of one
percent of their advertising and promotional budget in virtual
worlds," notes Gilbert.

About Strategy Analytics

Strategy Analytics, Inc. focuses on market opportunities and
disruptive forces in the areas of Automotive Electronics and
Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent
Systems Implementation Strategies and High Frequency Market
intelligence. Headquartered in Boston, MA, with offices in the UK,
France, Germany, Japan, S. Korea and China, Strategy Analytics works
with clients through annual multi-client services, management team
workshops and custom consulting engagements. For more information,
please visit www.strategyanalytics.com

Strategy Analytics
Harvey Cohen, 617-614-0705
hcohen@strategyanalytics.com
or
Barry Gilbert, 617-614-0701
bgilbert@strategyanalytics.com

Copyright Business Wire 2008