Now approaching 5.2 million “residents,” Second Life’s population rivals that of Bangalore, and outpaces Los Angeles by about million. As a market, then, Second Life’s popularity implies one thing: the virtual world cannot continue to be ignored.

Characterized as a “a 3-D virtual world entirely built and owned by its residents,” Second Life is technically “MMORPG” (a Massive Multiplayer Online Role Playing game) similar in operation to the immensely popular World of Warcraft. Their similarities end at the door however – where World of Warcraft (or “WoW”) is particularly game-oriented, Second Life seeks to mirror “first” life. While there are games (virtual gambling is a huge in-world moneymaker), there are no specific objectives to Second Life itself, no winning or losing. Second Lifers simply interact with one another, create virtual homes and cities, buy and sell virtual goods and services, and go about the daily business of digital life.

Much internet ink has been spilled on the subject of corporate marketing in Second Life, and much debate as to the efficacy of those efforts goes on today. Nevertheless, companies continue to push into Second Life. Even the smallest business can create a digital storefront with a minimal expense, while multinational corporations such as IBM, American Apparel, Toyota, Dell, General Motors, American Express and Telus invest significant budgets in creating “islands” that are at their core information conduits between the corporation and Second Life residents. CNET has created a news bureau in Second Life, as has Reuters, and

Sweden recently opened a virtual embassy. But discussions of ROI aside – and there are some serious questions as to whether marketing opportunities in Second Life are all they’re cracked up to be from a profit perspective – there are yet compelling reasons why your company should consider a virtual presence.

Come back Monday for part two of this post, and find out why you should consider establishing a presence in Second Life. Contact us at tvg@vandivergroup.com or send comments to blog@vandivergroup.com.