Research and consultancy group Strategy Analytics has released a new study, "Defining the Total Economic Return from Virtual Worlds Applications," which “guides companies in terms of expected returns from virtual worlds investments.”

The report finds that many companies have found that investments in virtual worlds have not met expectations, but reasons that their failure relates to “poorly implemented media strategies that do not include virtual worlds as part of an integrated PR and promotional effort,” and that companies generally fail to use appropriate metrics to assess their level of success or failure.

As a result, within the report Strategy Analytics examines the benefits of virtual worlds and provides a process for evaluating investments based on those benefits.

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

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," noted Gilbert.