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Augmenting a Postcard from Julian Oliver on Vimeo.

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(CNN) -- When Santiago Martinez wants to give his friends birthday presents, he buys a cake or flowers or sometimes a teddy bear.
'Virtual currencies,' like the hi5 Coin, shown here, are becoming more important on the Internet.
He also doesn't deliver the gifts in the physical world. They appear digitally on his friends' online profiles on a site called hi5, which is a social network like Facebook or MySpace.
"They can't eat the cake. It is an image -- the thing that it represents," said Martinez, an accountant with a wife and two kids. "You can send the feeling of that [cake] that you want to send."
In any given month, he spends the equivalent of $40 in this manner.
But Martinez is hardly alone.
As our identities migrate further onto the Internet, currencies that exist only online are becoming a more significant part of commerce on the Web and in the real world. Some, like the hi5 Coin, operate almost like tokens in an arcade or tickets at a fair: They're a stand-in for real-world currency.
Other "virtual currencies," like Second Life's Linden Dollars, however, are traded on markets. The currencies also fuel online gaming communities and are becoming an important part of social networks.
Several online currencies are competing to be the economic engines for MySpace and Facebook, which don't have their own unified currencies. Other social networking sites, like hi5 and myYearbook, have created their own units of money for their users to spend.
All of this movement leads some experts to see a future in which virtual currencies enter the same trading space as their real-world counterparts.
The online monies are not robust enough to trade competitively against real-world currencies, but people underestimate the large amount of cash that is transferred from the real world into virtual currencies, said Edward Castronova, a professor of telecommunications at Indiana University.
Castronova says people transfer at least $1 billion into the virtual currencies each year, with most of that money going into online games. The actual amount could be much higher, he said, but the market is hard to quantify.
"The question is really one of scale," he said. "Is this big enough for someone to take their 401(k) [out of real-world currency] and start looking into this? No, absolutely not."
Sometimes, people collect online money simply by purchasing it.
In "World of Warcraft," players earn WoW Gold as they advance through the game. The currency has become so sought-after that it is bought and sold on a black market, experts said.
Low-wage workers in China are known to play the game for a living and then sell the virtual currency they earn to avid "World of Warcraft" players in the West. This despite the fact that the game's maker prohibits such activities.
As the market for online-only currency grows, problems that plague real-world economies start leaking in, said Charles Hudson, who runs the Virtual Goods Summit, an annual conference.
"Once you get a virtual economy that's functioning, you run into all the problems that we have with the real economy: taxation, interest rates, inflation. All of the same problems that cause headaches for the Federal Reserve come up in the virtual economy -- and the stakes are the same," he said.
The solution has been for each social network or game that uses its own currency to appoint a money manager. Hi5, for instance, employs a staff economist for this purpose.
The site soon hopes to make as much money through its virtual currency exchange as it does from advertising, which is the primary revenue source for many social networks.
Mark Methenitis, a Dallas attorney who writes a blog called "Law of the Game," said online currencies are "completely unregulated," which will make trading them against each other dangerous.
"There is huge potential for fraud, for what would be the equivalent of insider trading," he said. "Also, since these economies are completely under the control of the virtual world owner, it's pretty easy to cause massive hyperinflation."
Social networks and virtual worlds are currently trying to find ways to manage or capitalize on their developing economies.
These networks' successes may hinge on how they are able to manage their economies and currencies may, experts said.
Facebook is researching the idea of creating a unified currency but is "very early" in the process and has not committed to it, the site said in a statement to CNN.
Currently, applications on the site -- which allow users to play games with each other and trade gifts -- are powered by currencies made by the application's developers, not by Facebook.
These developers are making good money on the system, and Facebook is missing out on profits in that area, said Hudson, of the Virtual Goods Summit.
Joey Seiler, who writes about virtual worlds, said virtual goods are becoming more popular because people are taking their online identities more seriously.
At first, it may seem ridiculous that someone would pay for virtual currency in order to buy a T-shirt icon to put on a social-network profile. But Seiler said more or his friends see the virtual T-shirts on his Facebook page than see any T-shirt he wears in real life.
If you think semantic is the same as contextual, think again. Here's what you need to know about harnessing the power of words online.
Online advertising is all about relevance -- being in the right place, at the right time, when consumers are most receptive to your message. But as any marketer who's been around the block can attest, that's easier said than done. Keywords are one thing; piecing them together to infer meaning and context is quite another. In this interview, Lori Xeller, senior director of sales for Kontera, discusses the opportunities offered by in-text advertising, as well as the misconceptions and market climate surrounding the technology.
iMedia: At the summit, you'll be discussing the importance of leveraging the semantic web. Can you give me one or two simple examples of how you help clients do this?
Lori Xeller: Our semantic technology enables us to make the most relevant associations between and among the user, the content he or she is consuming, and our advertisers. The key phrases that we highlight in an article can be thought of as predicting what the user would type into a search engine to get to that page. By associating this phrase with a relevant ad, we deliver a very high level of engagement and an extremely qualified user to the advertiser.
There are a few different companies talking about the semantic web today, with networks, for example, amplifying certain takes on relevance and directing search queries to their clients' products. But delivering the most relevant results that anticipate what a given user's query will be within the in-text segment narrows the purchase funnel in ways that no other segment can.
iMedia: What's the biggest danger in neglecting the semantic web and focusing exclusively on keywords when it comes to searches and ad placement?
Xeller: The danger is that you are missing a valuable opportunity to engage with your audience at the moment when they are most engaged -- within the content. In-text provides an additional opportunity to capture your audience further down the consideration cycle, after they've performed a search query, possibly, and landed on the page of interest. Upon user mouse-over, the ad is delivered in the content that they're reading, or where they're doing research -- wherever the user is engaged. Sometimes that can occur in a nonintuitive or hard-to-reach place, and with in-text, you're not competing with banners that are on the side of the page.
Leveraging the semantic web is smart because it anticipates what the user is thinking and will consider. Our campaign data show how powerful this can be.
iMedia: What's the most common misconception you hear from marketers when it comes to leveraging the semantic web? What do these people need to know?
Xeller: The most common misconception is that semantic is the same as contextual. Semantic does not just target keywords -- semantic infers meaning and context. Semantic technologies can then anticipate what the user is thinking and deliver appropriate ads accordingly.
iMedia: On a more general note, how has the recent downturn affected the marketing needs of your clients? What are the most common questions or issues that clients are coming to you with right now?
Xeller: All marketers are more and more accountable for every dollar they spend. They want to know how they can continue to drive toward their engagement, consideration, and revenue goals with either reduced budgets or higher expectations. We provide them with a great solution because our units are user initiated, which requires the user to engage. At the point they see it; the high level of relevancy of the ad to the page encourages their consideration or brand involvement. The result benefits the advertiser, providing them with an extremely cost effective and engaging solution
Our business is doing well, so perhaps the marketing downturn has driven dollars to more accountable segments. Clients are asking about the brand effects of in-text when they're buying clicks. We know they exist because once a user mouses-over and the unit launches, it's impossible to not have a brand experience with in-text. An advertiser receives the brand engagement for no additional charge -- and we're talking about some of the best engagement rates in all of interactive.
iMedia: Beyond the semantic web, where do you see the greatest untapped opportunity for digital marketers? And what is your high-level advice for breaking into this opportunity?
Xeller: One thing that in-text does is enable publishers to leverage the newest technologies, while being unobtrusive to users and performing extremely well for performance and brand marketers. It's one of the few new marketing technologies that maintains the triangle of benefit for buyers, sellers, and users, and we expect it to continue growing indefinitely.
There are a lot of new great opportunities out there for digital marketers today. These would range from in-text to mobile, content integration, and so on. My advice to the marketers would be this: Don't be afraid to test them and see the results for yourself, but make sure to have a clear understanding of the vendor's history and experience before signing on.
Lori Luechtefeld is editor of iMedia Connection.